For a £250,000 house , you’ll need a minimum deposit of £12,500 (5%) , though £25,000-£50,000 (10-20%) secures better rates.
Table of Contents
Deposit Options for £250K House
Deposit %
Amount
Mortgage
Best Rate Tier
5%
£12,500
£237,500
Higher rates (~5.5%)
10%
£25,000
£225,000
Good rates (~4.5%)
15%
£37,500
£212,500
Better rates (~4.2%)
20%
£50,000
£200,000
Best rates (~4.0%)
Monthly Payments by Deposit Size
Deposit
Mortgage
Monthly Payment (25yr)
Rate
5% (£12.5K)
£237,500
£1,462
5.5%
10% (£25K)
£225,000
£1,253
4.5%
15% (£37.5K)
£212,500
£1,150
4.2%
20% (£50K)
£200,000
£1,056
4.0%
A 20% deposit saves £406/month compared to 5%.
Total Upfront Costs
Cost
5% Deposit
10% Deposit
20% Deposit
Deposit
£12,500
£25,000
£50,000
Stamp duty (FTB)
£0
£0
£0
Stamp duty (mover)
£2,500
£2,500
£2,500
Solicitor
£1,600
£1,600
£1,600
Survey
£450
£450
£450
Arrangement fee
£999
£999
£999
FTB Total £15,549 £28,049 £53,049
Income Required
Deposit %
Mortgage
Income Needed (4.5x)
5%
£237,500
£52,778
10%
£225,000
£50,000
15%
£212,500
£47,222
20%
£200,000
£44,444
Saving for Your Deposit
Monthly Savings
Time to £25K
Time to £50K
£400
5.2 years
10.4 years
£600
3.5 years
7 years
£800
2.6 years
5.2 years
£1,000
2.1 years
4.2 years
Using Lifetime ISA adds £1,000/year bonus (up to £4,000 contribution).
Deposit vs Long-Term Cost
Scenario
5% Deposit
20% Deposit
Difference
Initial outlay
£12,500
£50,000
+£37,500
Monthly payment
£1,462
£1,056
-£406
Total interest (25yr)
£201,100
£116,813
-£84,287
Lifetime savings —
—
£46,787
Written by
WealthVieu
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