Deposit
A deposit is the part of a property's price that you pay from your own money, rather than borrowing it with a mortgage.
Also known as: mortgage deposit, house deposit
Most lenders require at least 5% of the price, though a larger deposit brings lower rates and more choice. Deposits are often built up through savings, a Lifetime ISA, gifts from family or sale proceeds from a previous home.
Remember to budget for additional costs such as legal fees, surveys and moving costs on top of the deposit.
An authorised mortgage adviser can explain how this applies to your circumstances, and MoneyHelper offers free guidance. Your home may be repossessed if you do not keep up repayments on your mortgage.
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9 min readReadThis page provides general information only. It is not personalised financial, legal or tax advice, and rules and figures can change. Your situation is unique — please check official sources such as GOV.UK and MoneyHelper, and speak to a qualified, FCA-authorised adviser before making important decisions about your money.