A deposit can be the most important aspect of getting on the property ladder for first-time buyers; and acts as a lump sum reducing the mortgage payments that will be received by the mortgage lender.

A first-time buyer mortgage deposit is the amount of money that the buyer is expected to provide towards the purchase of a property and to secure a mortgage. The balance of the value of the property is made up by a mortgage. Building a deposit for a house is not easy, and first-time buyers need to save hard to buy a house.

Beside saving for a deposit, first-time buyers can use a different sort of mortgage (such as a 100 per cent mortgage or a professional mortgage) or rely on their parents to gift them with a deposit. The size of a deposit on a house can significantly affect how much a first-time buyer pays in interest on their mortgage. Typically, a first-time buyer mortgage deposit would be between five and ten per cent of the price of a house.

Mortgage lent to first-time buyers and other borrowers over 85 or 90 per cent usually attract higher lending charges. Affording a deposit, whether using your parents or saving up, is the first step in getting a mortgage loan. The discipline needed to save for a deposit as a first-time buyer is useful to learn in order to meet monthly mortgage repayments.

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