How Much Deposit Do I Need for a Mortgage in Essex?

Surely one of the most common home-buying questions: how much deposit do I actually need? Whether you're looking in Leigh-on-Sea, Chelmsford or Colchester, this guide will help you understand how deposits work, what lenders expect, and how much you might need based on local property prices.

Average House Prices in Essex (2025)

Understanding the local market is key when planning your deposit. According to the ONS Housing Price Visualisation Tool*, average property prices in Essex (as of April 2025) are:

• Chelmsford: £386,000
• Southend-on-Sea: £322,000
• Colchester: £302,000
• Rochford: £400,000

Comparatively, according the UK House Price Index (April 2025):

Essex average: £362,283

National average (England): ~£286,000

First-time buyers often opt for starter homes or flats, which would result in a slightly lower purchase price than the location’s average.

* On clicking the above ONS Housing Price Visualisation Tool or the UK House Price index link, you will leave the regulated site of We Do Mortgages Ltd. Neither We Do Mortgages Ltd, nor Sesame Ltd, is responsible for the accuracy of the information contained within the linked site.

Typical Deposit Requirements

The minimum deposit required for most residential mortgages in 2025 is 5%, but putting down 10% or more can significantly improve your chances of approval and reduce your monthly repayments.

• 5% deposit on a £250,000 property = £12,500 deposit, 95% LTV
• 10% deposit on a £275,000 property = £27,500 deposit, 90% LTV
• 15% deposit on a £300,000 property = £45,000 deposit, 85% LTV
• 20% deposit on a £325,000 property = £65,000 deposit, 80% LTV

What Affects the Deposit You'll Need?

Your credit history – A stronger credit score may open lower-deposit options up for you.

Property type – New builds often require a higher deposit.

Whether you’re using a scheme – Government schemes like Shared Ownership or First Homes can reduce upfront costs.

Lender policy – Some lenders require higher deposits for flats, ex-local authority properties, or non-standard construction homes.

Help for First-Time Buyers

If you’re struggling to save a large deposit, there are several support options available:

• Lifetime ISA (LISA) – Save up to £4,000 a year and receive a 25% bonus from the government, up to a maximum of £1,000 per year.
• Gifted deposits – Common in first time buyers; family can contribute, but it must be declared and evidenced.
• First Homes scheme – Discounted new-build homes for local first-time buyers and key workers.
• Stamp Duty relief – First-time buyers pay no Stamp Duty on homes up to £300,000. Other buyers pay from £125,000 upwards, starting at 2%

*Other T&C's also apply for LISA and First Homes Scheme.

Check your Stamp Duty here

Explore our First-Time Buyer Mortgages

Saving Tips for Your Deposit

1. Set a target based on area – Use local property data to work out what you'll need.
2. Automate your savings – Use a dedicated savings account or Lifetime ISA.
3. Check eligibility for schemes – Government support could reduce how much you need to save.
4. Speak to a broker early – We can advise on what lenders will expect and suggest realistic goals.

Get Tailored Advice for Your Area

At We Do Mortgages, we help buyers across Essex—from Benfleet to Brentwood—find the right mortgage, no matter the size of their deposit.

Talk to a local advisor or start your application online today.