Finance · 2 min read

How Much Deposit for a £500,000 House in the UK?

Buying a £500,000 house in the UK? See exactly how much deposit you need at the most common tiers, and how each deposit level affects your monthly payments and mortgage choices.

Deposit amounts at a glance

• 5% deposit: £25,000 — loan: £475,000
• 10% deposit: £50,000 — loan: £450,000
• 15% deposit: £75,000 — loan: £425,000
• 20% deposit: £100,000 — loan: £400,000

Why deposit size matters

A larger deposit does more than reduce the amount you need to borrow — it unlocks better interest rates. On a £500,000 property, the difference between a 5% deposit (£25,000) and a 10% deposit (£50,000) typically cuts your mortgage rate by 0.5–1.5%, which can save tens of thousands over a 25-year term.

At a 5% deposit, you typically need a 95% loan-to-value (LTV) mortgage, which carries the highest rates. Jumping to 10% (90% LTV) opens significantly better deals. At 20%+ (80% LTV or lower), you qualify for the best rates on the market.

Monthly payment comparison

Using a repayment mortgage at a typical rate:

• 5% deposit: roughly £2,755/month (higher rate)
• 10% deposit: roughly £2,340/month
• 20% deposit: roughly £1,920/month (best rates)

Run your exact scenario with our mortgage calculator.

Income needed

Most UK lenders use income multiples of 4–4.5× your salary. To borrow £450,000 (with a 10% deposit), you typically need a household income of roughly £100,000–£112,500. With a larger 20% deposit, the lower borrowing requirement (£400,000) means you need roughly £88,889–£100,000. First-time buyer schemes like Help to Buy and shared ownership can reduce these requirements — check our complete deposit guide for details.

Saving the deposit

At a savings rate of £500/month (achievable on many salaries outside London):

• 5% deposit (£25,000): 5 years
• 10% deposit (£50,000): 9 years
• 20% deposit (£100,000): 17 years

A Lifetime ISA (LISA) adds a 25% government bonus (up to £1,000/year), which can meaningfully accelerate your timeline — £4,000 saved in a LISA becomes £5,000 towards your first home.

Frequently asked questions