What 5%, 10% and 15% actually mean
Lenders think in loan-to-value, or LTV: the share of the price you're borrowing. Put down 5% and you're borrowing 95%. The smaller your slice, the more risk the lender carries, and the more they charge for carrying it.
A 5% deposit gets plenty of first-time buyers started. The trade-offs are a higher rate band, fewer lenders to choose from, and less cushion if prices dip. It's a perfectly respectable way to buy a first home; it's just the most expensive lane on the road.
At 10%, the market opens up: more lenders, keener pricing, and monthly payments that usually feel noticeably lighter. For many buyers this is the sensible target, reachable without waiting years but with a real improvement in the deals on offer.
At 15% or more you're into more comfortable territory again, with better pricing and a wider choice. The improvements keep coming as LTV falls, but more slowly. Waiting two extra years to scrape together another 5% isn't automatically the right call, especially while you're paying rent the whole time.
A word about Dorset prices
Around here, the same percentage means very different sums. A terraced house in Weymouth, a cottage on Portland and a family home in Poole sit at quite different price points, and coastal streets can vary house by house. Rather than anchor to a headline figure, work backwards: what monthly payment feels safe, and what deposit and price make that work?
Where deposits come from
Savings, mostly, and usually more slowly than anyone would like. A Lifetime ISA can add a government bonus if you qualify. Gifted deposits from family are common and completely normal: the lender will want a short letter confirming it's a gift rather than a loan. Most lenders don't mind gifts at all, but a few have quirks, which is exactly the kind of thing an adviser checks before you apply.
Next steps
Once the deposit is within sight, get a decision in principle. It usually takes a day or two and tells you what a lender would plausibly offer. That number is what turns daydreaming into house-hunting.
If you're saving for a first home anywhere in Dorset, come and talk to us. We'll tell you what your deposit realistically gets you, and what another year of saving would actually change.