It's usually the first question anyone asks us, and it's usually asked with a slight wince, as if the answer is going to ruin their week. So let's get straight into it.
The textbook answer: most mortgage lenders want at least 5% of the purchase price as a deposit, though you'll get a noticeably better rate at 10% and a genuinely good one at 15-25%. On a £450,000 flat in Beckenham, that's the difference between finding £22,500 and finding £45,000 or more. It matters, and no amount of positive thinking changes the maths.
The bit people don't ask about: what else you'll need on top of the deposit. This is where we see most first-time buyers get caught out, not on the headline figure but on the extras nobody mentioned.
Stamp duty, and yes, it's changed
If you're a first-time buyer, you won't pay any Stamp Duty Land Tax on the first £300,000 of the purchase price, and you'll pay 5% on the portion between £300,000 and £500,000. Buy anything over £500,000 as a first-time buyer and that relief disappears entirely. You're taxed as a standard buyer from £0. Standard buyers (not on their first purchase) pay nothing up to £125,000, then 2% up to £250,000, 5% up to £925,000, and it climbs from there.
Given how much of Beckenham and West Wickham sits comfortably in the £400,000-£600,000 range for a family house, this threshold isn't academic. It's often a five-figure sum that needs to sit alongside your deposit, not inside it.
What else to budget for
- Solicitor's fees: typically £1,200-£2,000 for a standard purchase, more if there's anything unusual (leasehold, new build, shared ownership).
- Survey: a basic Level 2 survey runs from around £400, a full building survey more like £600-£1,000. On a Victorian terrace in Addiscombe or an older semi off Pickhurst Rise, we'd always push for the fuller one.
- Mortgage arrangement fees: some are added to the loan, some need paying upfront. Ask your broker to spell this out rather than just quoting the headline rate.
- Removals, and the small stuff: new locks, a deep clean, the inevitable trip to a DIY shop the weekend you move in.
A deposit that looks big on paper isn't always enough
We've sat with buyers who had what felt like a healthy deposit saved, only to realise the stamp duty bill and solicitor's costs meant they were actually house-hunting £15,000 lower than they'd planned. It's not a fun conversation to have mid-search. It's a much better one to have before you start.
If you want an honest number rather than a rule of thumb, bring us your figures and the sort of property you've got your eye on (a two-bed conversion near the station is a very different sum to a four-bed on Queensway) and we'll walk it through with you properly, no obligation to use us for anything after.
If you're weighing up a purchase in Beckenham or West Wickham, book a chat with the team or have a browse of what's currently on the market. No pressure, just a proper conversation about the numbers.
FAQs
How much deposit do I need to buy my first home in the UK?
Most mortgage lenders require a minimum of 5% of the purchase price, though a 10-15% deposit typically unlocks noticeably better mortgage rates.
Do first-time buyers pay stamp duty in 2026?
First-time buyers pay no stamp duty on the first £300,000 of a purchase and 5% on the portion between £300,000 and £500,000. Above £500,000, standard rates apply from £0.
What extra costs come on top of a deposit when buying a house?
Budget for stamp duty (where applicable), solicitor's fees (typically £1,200-£2,000), a survey (from around £400), mortgage arrangement fees, and removal costs.
