For a £300,000 property, the minimum deposit is typically 5%, which would be £15,000. However, putting down a 10% deposit (£30,000) usually provides access to better mortgage rates and lower monthly payments. The larger your deposit, the lower your loan-to-value ratio, which lenders view more favourably.
In addition to the deposit, you’ll need to budget for legal fees, survey costs, possible mortgage arrangement fees and moving expenses. Stamp Duty may not apply if the purchase falls within first-time buyer relief thresholds.
While 5% mortgages are available, they can carry higher interest rates. A slightly larger deposit can significantly improve affordability and product choice.
Your home may be repossessed if you do not keep up repayments on your mortgage.