To buy a £500,000 house you need a minimum deposit of ££25,000 (5%), but most buyers put down at least ££50,000 (10%) to access better mortgage rates and reduce monthly payments. On top of the deposit, budget for stamp duty (££15,000 for standard buyers, ££10,000 for first-time buyers) plus solicitor and survey fees of around £2,500–£4,000.
Deposit Options for a £500,000 House
| Deposit | Amount | Loan amount | Monthly payment (4.5%, 25yr) | LTV |
|---|---|---|---|---|
| 5% | £25,000 | £475,000 | £2,640 | 95% |
| 10% | £50,000 | £450,000 | £2,501 | 90% |
| 15% | £75,000 | £425,000 | £2,362 | 85% |
| 20% | £100,000 | £400,000 | £2,223 | 80% |
| 25% | £125,000 | £375,000 | £2,084 | 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 £500,000 property. They have saved £50,000 (10%). Their mortgage is £450,000 at 4.5% over 25 years — monthly payments of £2,501. Stamp duty (first-time buyer rate): £10,000. Solicitor fees: £1,800. Survey: £600. Total upfront cost: approximately £62,400.
Total Upfront Costs for a £500,000 House
| Cost item | 5% deposit scenario | 10% deposit scenario | 20% deposit scenario |
|---|---|---|---|
| Deposit | £25,000 | £50,000 | £100,000 |
| Stamp duty (standard buyer) | £15,000 | £15,000 | £15,000 |
| Stamp duty (first-time buyer) | £10,000 | £10,000 | £10,000 |
| 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) | ~£43,100 | ~£68,100 | ~£118,100 |
| Total (FTB, incl deposit) | ~£38,100 | ~£63,100 | ~£113,100 |
Salary Required for a £500,000 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% | £475,000 | £105,555 | £52,777 each |
| 10% | £450,000 | £100,000 | £50,000 each |
| 20% | £400,000 | £88,888 | £44,444 each |
Stamp Duty on a £500,000 House
| Buyer type | Stamp duty |
|---|---|
| Standard buyer | £15,000 |
| First-time buyer | £10,000 |
See the full stamp duty on a £500,000 house guide for the complete band-by-band calculation.
First-Time Buyer Schemes for a £500,000 House
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95% mortgage guarantee scheme — enables lenders to offer 95% LTV mortgages; deposit of just £25,000 required.
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Shared Ownership — buy a 25–75% share; your mortgage and deposit are based only on the share, not the full price.
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Joint Borrower Sole Proprietor — a parent or guarantor on the mortgage (but not the property deeds) can boost borrowing capacity.
Building Your Deposit
Most buyers take 2–5 years to save a deposit. With a target of £50,000:
| Monthly saving | Time to save £50,000 |
|---|---|
| £500/month | 100 months (8.0 years) |
| £750/month | 66 months (5.0 years) |
| £1,000/month | 50 months (4.0 years) |
| £1,500/month | 33 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.
Legal and Survey Costs to Budget For
Beyond deposit and SDLT, buying a £500,000 property involves additional upfront costs:
| Cost | Typical range |
|---|---|
| Solicitor/conveyancing fees | £1,500–£2,500 |
| Surveyor (HomeBuyer Report) | £450–£800 |
| Mortgage arrangement fee | £0–£2,000 |
| Removal costs | £800–£2,500 |
| Buildings insurance (year 1) | £200–£500 |
| Total additional costs | ~£2,950–£8,300 |
For a £500,000 purchase with a 10% deposit (£50,000) and SDLT (£15,000 at standard rate), the total cash needed including costs is approximately £70,000–£75,000. First-time buyers with relief save up to £5,000 on SDLT, bringing the total to around £65,000–£70,000.