💰 House Deposits Explained: What You Need to Know Before You Buy
Buying a home is one of the biggest financial decisions you’ll ever make, and understanding how house deposits work is key to a successful purchase. Whether you’re stepping onto the ladder for the first time or moving up to your next property, David Clarke Estate Agents is here to help. Our local estate agents in Herne Bay and Whitstable work closely with buyers to ensure you’re financially ready when the right home comes along.
The deposit is typically the largest upfront cost in the home buying process. Most lenders will require a minimum deposit of 5% of the property’s purchase price, but putting down more—such as 10%, 15% or even 20%—can open the door to better mortgage rates and lower monthly payments.
For example, if you’re buying a home worth £250,000, a 10% deposit would be £25,000. The more you can save, the more mortgage deals you’ll likely qualify for, reducing your long-term financial commitment. Lenders often reward bigger deposits with more favourable interest rates.
If you’re a first-time buyer, you may be eligible for schemes such as the Lifetime ISA (LISA), where the government adds a 25% bonus to your savings—up to £1,000 a year—when used toward your first home. These tools can help you build your deposit faster and get closer to your dream home sooner.
But remember, the deposit is not the only cost to consider. You’ll also need to budget for conveyancing fees, survey costs, removals, and potentially Stamp Duty. That’s why speaking to our team at David Clarke Estate Agents is so helpful—we’ll help you understand the full picture from the outset.
Sellers should also understand how deposits work, especially when receiving offers. A buyer with a larger deposit is often considered a more secure option, as they may be less reliant on high loan-to-value mortgage products, which can be harder to obtain in tougher lending climates.
If you’re unsure how much you need to save or what deposit you’ll require for your ideal property, our knowledgeable estate agents in Whitstable and Herne Bay are happy to help. We’ll put you in touch with trusted local mortgage advisers and walk you through the steps from saving to securing your loan.
At David Clarke Estate Agents, we believe in clear advice, local knowledge, and supporting our clients every step of the way. Whether you’re just starting your savings journey or you’re mortgage-ready, we’re here to help you move forward with confidence.