To buy a £400,000 house you need a minimum deposit of ££20,000 (5%), but most buyers put down at least ££40,000 (10%) to access better mortgage rates and reduce monthly payments. On top of the deposit, budget for stamp duty (££10,000 for standard buyers, ££5,000 for first-time buyers) plus solicitor and survey fees of around £2,500–£4,000.
Deposit Options for a £400,000 House
| Deposit | Amount | Loan amount | Monthly payment (4.5%, 25yr) | LTV |
|---|---|---|---|---|
| 5% | £20,000 | £380,000 | £2,112 | 95% |
| 10% | £40,000 | £360,000 | £2,001 | 90% |
| 15% | £60,000 | £340,000 | £1,890 | 85% |
| 20% | £80,000 | £320,000 | £1,779 | 80% |
| 25% | £100,000 | £300,000 | £1,667 | 75% |
A larger deposit reduces your loan-to-value (LTV). Lower LTV typically means better interest rates — which can save thousands over the mortgage term.
Worked Example
First-time buyer purchasing a £400,000 property. They have saved £40,000 (10%). Their mortgage is £360,000 at 4.5% over 25 years — monthly payments of £2,001. Stamp duty (first-time buyer rate): £5,000. Solicitor fees: £1,800. Survey: £600. Total upfront cost: approximately £47,400.
Total Upfront Costs for a £400,000 House
| Cost item | 5% deposit scenario | 10% deposit scenario | 20% deposit scenario |
|---|---|---|---|
| Deposit | £20,000 | £40,000 | £80,000 |
| Stamp duty (standard buyer) | £10,000 | £10,000 | £10,000 |
| Stamp duty (first-time buyer) | £5,000 | £5,000 | £5,000 |
| Solicitor / conveyancing | ~£2,000 | ~£2,000 | ~£2,000 |
| Survey (RICS Level 2) | ~£600 | ~£600 | ~£600 |
| Mortgage arrangement fee | £0–£1,499 | £0–£1,499 | £0–£1,499 |
| Total (standard, incl deposit) | ~£33,100 | ~£53,100 | ~£93,100 |
| Total (FTB, incl deposit) | ~£28,100 | ~£48,100 | ~£88,100 |
Salary Required for a £400,000 House
Lenders use an income multiple to determine the maximum mortgage. Most use 4–4.5x annual salary.
| Deposit | Mortgage amount | Salary needed (4.5x) | Joint salary needed |
|---|---|---|---|
| 5% | £380,000 | £84,444 | £42,222 each |
| 10% | £360,000 | £80,000 | £40,000 each |
| 20% | £320,000 | £71,111 | £35,555 each |
Stamp Duty on a £400,000 House
| Buyer type | Stamp duty |
|---|---|
| Standard buyer | £10,000 |
| First-time buyer | £5,000 |
See the full stamp duty on a £400,000 house guide for the complete band-by-band calculation.
First-Time Buyer Schemes for a £400,000 House
- 95% mortgage guarantee scheme — enables lenders to offer 95% LTV mortgages; deposit of just £20,000 required.
- Shared Ownership — buy a 25–75% share; your mortgage and deposit are based only on the share, not the full price.
- Lifetime ISA — save up to £4,000/year, government adds 25% (up to £1,000/year) toward your deposit.
- First Homes scheme — 30–50% discount on new-build homes in some areas; requires property value below a local cap.
Building Your Deposit
Most buyers take 2–5 years to save a deposit. With a target of £40,000:
| Monthly saving | Time to save £40,000 |
|---|---|
| £500/month | 80 months (6.0 years) |
| £750/month | 53 months (4.0 years) |
| £1,000/month | 40 months (3.0 years) |
| £1,500/month | 26 months (2.0 years) |
A Lifetime ISA or high-interest savings account will grow your deposit while you save. See best savings accounts UK and the Lifetime ISA guide.
For more, see how much deposit you need for a house, first-time buyer guide UK, and stamp duty guide UK.