Easier said than done.. 5% is relative to the price which once was and is now. This could be worlds apart.. OP - My daughter is in the same predicament- Realistically, she needs £60k for a deposit which she's not likely to get anytime soon. However, [as already said] the more deposit you pay the better rate you'll get. Also, you have to consider that you'll want to be paying off some of the capital as this will reduce the loans and any interest long term. It will also increase your chance at remortgaging.. You don't want to be in a position that in 5 years time, you decide you want to move but have paid nothing off.. The same can be said of 35-40 year mortgages.. IMHO - Save hard for another year, see what the housing market does in that time.. Pay as much deposit as you can afford.. even if you have to wait longer. Opt for a term that is realistic and works for you long term. As Mr E said, "bite the bullet" .. but don't struggle for 5 years only to find there is no benefit at the end otherwise your struggling would be a waste of time. Have you considered the help to buy scheme?