Saving for your first deposit is usually the biggest hurdle on the way to owning your own home. It’s a question we’re asked more than almost any other at Matt Clarke Mortgage Services, so here’s a straightforward guide to what you actually need, and where it can come from.

What counts as your deposit

Your deposit is the portion of the property price you pay upfront, with the rest covered by your mortgage. It’s usually expressed as a percentage of the purchase price. The bigger your deposit, the smaller the loan you need, and often the better the rates you’ll be offered.

How much you’ll typically need

Most lenders ask for a minimum deposit, with many first time buyer mortgages available from around 5% of the property price. That said, the “right” amount depends entirely on your circumstances, the type of property you’re buying, and which lenders will consider your application. Some schemes are designed specifically to help buyers with smaller deposits, while a larger deposit widens your choice of deals considerably. This is exactly why it pays to speak to a broker who has access to the whole of the market, rather than relying on a single lender’s criteria, as explained on our mortgages page.

Where your deposit can come from

Deposits don’t have to come solely from personal savings. Many first time buyers use a combination of sources, including:

• Personal savings built up over time
• A gifted deposit from family
• Government schemes designed to help buyers onto the ladder
• Proceeds from selling other assets

Lenders will want evidence of where your deposit has come from, so it’s worth keeping records as you save, particularly for gifted amounts.

Why a bigger deposit can help

A larger deposit reduces the amount you need to borrow, which can mean access to lower interest rates and more manageable monthly repayments. It also gives you a bigger buffer against changes in your property’s value. However, waiting to save more isn’t always the right choice for everyone, particularly if it means missing out on a suitable property or an available scheme. We can talk through the pros and cons based on your own situation.

How we can help

As a whole of market broker with access to thousands of mortgage schemes, many of which aren’t available on the high street, we’re not tied to any particular lender. That means our advice is based solely on what suits you. We’ll explain your options clearly, handle the paperwork, and support you from application through to completion, as outlined on our about us page.

Once you’ve secured your first home, it’s also worth thinking about how you’d protect your mortgage payments if your income stopped unexpectedly. Our income protection and life cover pages explain the options.

Common questions

Do I need a perfect credit history to buy my first home?
Not necessarily. Lenders take different views on credit history, which is another reason whole of market advice is valuable, as we can match you to lenders suited to your circumstances.

Can I use a gifted deposit from my parents?
Yes, this is common, though lenders will usually need a signed letter confirming the money is a genuine gift and not a loan.

Should I save a bigger deposit before I start looking?
It depends on your goals and the property market where you’re buying. We can help you weigh up your options before you commit either way.

How do I find out what I could actually borrow?
The best way is to speak to one of our advisors directly, who can assess your income, outgoings and circumstances properly.

If you’re starting to think about your first deposit, get in touch and we’ll talk you through it.

Your home may be repossessed if you do not keep up repayments on your mortgage.
As with all insurance policies, conditions and exclusions will apply.