For a £500,000 house, you’ll need a minimum deposit of £25,000 (5%), though £50,000-£100,000 (10-20%) is strongly recommended at this price.
Deposit Options for £500K House
| Deposit % | Amount | Mortgage | Best Rate Tier |
|---|---|---|---|
| 5% | £25,000 | £475,000 | Higher rates (~5.5%) |
| 10% | £50,000 | £450,000 | Good rates (~4.5%) |
| 15% | £75,000 | £425,000 | Better rates (~4.2%) |
| 20% | £100,000 | £400,000 | Best rates (~4.0%) |
Monthly Payments by Deposit Size
| Deposit | Mortgage | Monthly Payment (25yr) | Rate |
|---|---|---|---|
| 5% (£25K) | £475,000 | £2,924 | 5.5% |
| 10% (£50K) | £450,000 | £2,506 | 4.5% |
| 15% (£75K) | £425,000 | £2,301 | 4.2% |
| 20% (£100K) | £400,000 | £2,112 | 4.0% |
A 20% deposit saves £812/month compared to 5%.
Total Upfront Costs
| Cost | 5% Deposit | 10% Deposit | 20% Deposit |
|---|---|---|---|
| Deposit | £25,000 | £50,000 | £100,000 |
| Stamp duty (FTB) | £10,000 | £10,000 | £10,000 |
| Stamp duty (mover) | £15,000 | £15,000 | £15,000 |
| Solicitor | £2,400 | £2,400 | £2,400 |
| Survey | £800 | £800 | £800 |
| Arrangement fee | £999 | £999 | £999 |
| FTB Total | £39,199 | £64,199 | £114,199 |
Note: At £500,000, first-time buyer stamp duty relief is at its limit — no relief above this.
Income Required
| Deposit % | Mortgage | Income Needed (4.5x) |
|---|---|---|
| 5% | £475,000 | £105,556 |
| 10% | £450,000 | £100,000 |
| 15% | £425,000 | £94,444 |
| 20% | £400,000 | £88,889 |
High-Income Lending Options
Some lenders offer higher multiples for high earners:
| Income | 4.5x Multiple | 5.5x Multiple (Professional) |
|---|---|---|
| £100,000 | £450,000 | £550,000 |
| £120,000 | £540,000 | £660,000 |
| £150,000 | £675,000 | £825,000 |
Professional mortgages (for doctors, lawyers, accountants etc.) may offer 5-5.5x income.
Lifetime Cost Comparison
| Deposit Level | 5% | 10% | 20% |
|---|---|---|---|
| Deposit paid | £25,000 | £50,000 | £100,000 |
| Total interest (25yr) | £401,861 | £301,579 | £233,580 |
| Total cost | £901,861 | £801,579 | £733,580 |
| Savings vs 5% | — | £100,282 | £168,281 |
Saving Strategies at This Level
| Savings Method | Annual Amount | Time to £100K |
|---|---|---|
| Save £2,000/month | £24,000 | 4.2 years |
| Save £2,500/month | £30,000 | 3.3 years |
| Bonus + savings combo | £40,000 | 2.5 years |
| Family gift (BOMAD) | Varies | Instant |
Tip: Document any family gifts carefully — lenders require gift letters.
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