Deposit
A deposit is the money you pay upfront when buying a home.
1 min read Buying a Home
What it means
A deposit is the money you pay upfront when buying a home. The remaining amount is usually borrowed through a mortgage. A larger deposit means borrowing less, which can improve the mortgage deals available to you.
Example
You buy a £250,000 home and have saved £25,000. Your deposit is £25,000 or 10% and you borrow the remaining £225,000.
Why it matters
Saving a deposit is one of the biggest milestones towards buying a home.
Increasing the deposit % of the total house price may reduce both your monthly repayments and the total interest you pay.
Do I lose my deposit after buying the property?
No. Your deposit becomes part of the value you own in your home.