I’m Charles Calvert, a mortgage broker at Easy Mortgages. This is general information, not personal advice. Always check the figures against your own situation before you decide anything.
One of the first questions Fareham buyers ask me is how much deposit they need to buy a house. The honest answer is that it depends on the property price, the lender’s criteria, your credit profile and how comfortable you want the monthly payment to feel. There is no single magic percentage that works for every buyer in PO14, Whiteley, Locks Heath or Portchester — but there are clear bands most people plan around.
Mortgage pricing has started to move after a long spell of very low Bank Rate, so deposit size and product choice matter more than they did a year ago.
Typical deposit and LTV bands
Lenders price mortgages by loan-to-value (LTV). Your deposit is the share of the purchase price you are not borrowing. The smaller the deposit, the higher the LTV, and usually the tighter the product range.
- 5% deposit (95% LTV) — available from a number of lenders and useful for first-time buyers who have saved carefully but cannot stretch further. Rates are often higher than at lower LTVs and underwriting can be stricter.
- 10% deposit (90% LTV) — a common target. More products appear and pricing is often better than at 95%.
- 15% deposit (85% LTV) — another step into wider lender choice and, typically, keener rates.
- 20%–25%+ deposit — generally unlocks the broadest panels and more competitive pricing because the lender’s risk is lower.
A larger deposit is not automatically the right move if it empties every pound of savings. Keep a cash buffer for solicitor fees, searches, survey, removals and the surprise repairs that come with almost any home.
What that looks like in Fareham price bands
Fareham and the surrounding villages cover a wide spread of prices — from flats and terraces to larger family homes. As a rough illustration only: on a £250,000 home, a 5% deposit is £12,500 and a 10% deposit is £25,000. On a £350,000 home those figures become £17,500 and £35,000. On a £450,000 home you are looking at £22,500 at 5% and £45,000 at 10%. Use live asking prices and a proper affordability check rather than a headline average from a property portal.
Commuter demand toward Portsmouth, Southampton and beyond also shapes what sells quickly. That does not change the deposit maths, but it does mean a prepared buyer with a clear borrowing figure and a mortgage in principle often moves faster when the right home appears.
How deposit size affects your rate
Lenders price risk. A smaller deposit usually means a higher interest rate and sometimes more conditions. A bigger deposit can mean a lower rate — but only if income, credit and outgoings still stack up. Two buyers with the same deposit percentage can still be offered different products if one has cleaner credit or lower monthly commitments. Treat rate tables as a guide, not a personal quote.
Schemes that can change the cash you need up front
Some Hampshire buyers look at Help to Buy equity loan new-build purchases where they are still eligible, or shared ownership, as ways to reduce the cash needed on day one. Shared ownership usually means a smaller deposit on the share you buy, plus rent on the unsold share. Help to Buy equity loan rules, regional price caps and builder deadlines are specific — check the scheme guidance for the plot you want rather than assuming a friend’s purchase matches yours. First Homes discounted sales are also appearing in some local plans; again, eligibility is property-specific.
Stamp duty for first-time buyers
First-time buyer stamp duty relief can reduce or remove SDLT under the thresholds that apply when you complete. Those thresholds are set by government and can change, so always check the current GOV.UK / HMRC calculator before you offer. Stamp duty sits alongside your deposit as a cash cost — it is easy to focus on the mortgage payment and forget the money you need at completion.
A simple deposit planning checklist
- Decide a realistic property price range for the Fareham streets you like.
- Pick a target LTV band (5%, 10%, 15%+) and reverse-engineer the cash needed.
- Add stamp duty, legal fees, survey and a contingency on top of the deposit.
- Get a mortgage in principle so agents know you are ready.
- Review credit commitments that might shrink how much a lender will advance.
Fees if you want help arranging a purchase
Your first chat comes with no fee and no obligation. If we arrange a purchase mortgage for you, my fee is £495, payable once you receive your full mortgage offer. Full details sit on the mortgages fees section.
Next step
If you are saving for a Fareham deposit and want a personalised plan — how much to aim for, which LTV bands look realistic, and what paperwork you will need — I am happy to talk it through.
If you would like to talk this through for your own numbers, you can get in touch here or email contact@easy-mortgages.co.uk. I am based in Fareham and help clients across Hampshire.