Searches for ‘how much to save for a house deposit’ soar 266% this past week

Buying a home is one of the biggest financial commitments most people will ever make, but new research by David Wilson Homes reveals thousands of aspiring homeowners could be basing their plans on outdated or incorrect information about deposits, schemes, and eligibility. 

The housebuilder analysed Google search data from the past 12 months and surveyed 1,000 UK adults to assess understanding and perceptions of current home-buying schemes. Terry Higgins, Group MD at TNHG Mortgage Services was then consulted to address common misconceptions and provide guidance around what is available to buyers in 2026. 

People in England and Scotland are still searching for Help to Buy, years after closure 

Despite the English Help to Buy equity loan scheme ending in October 2022, 32% of survey respondents believe it is still accepting applications, and 41% were unsure. The research also uncovered ongoing confusion across the UK due to high search volumes for Help to Buy across England and Scotland. 

In England, searches for Help to Buy averaged 20,925 per month, totalling 251,100 over the year. Help to Buy ended in October 2022 in England. 

In Scotland, the average monthly search volume was 810, totalling 9,720. The scheme closed to new applicants in February 2021.  

In Wales, the only UK country where Help to Buy is still live, the scheme was searched for 668 times per month on average, totalling 8,020 across 12 months.

Some searches may also be attributed to interest in the government-backed Help to Buy ISA. Although this scheme also closed to new applicants in 2019, existing savers can still use their funds and access the government bonus.

Despite this, the high search volumes for Help to Buy in England and Scotland suggest high demand for such schemes and ongoing confusion around their availability – especially as search terms like ‘help to buy alternative’ averaged less than 100 monthly searches across all three countries. 

Higgins said: ‘Although Help to Buy isn’t available in Scotland and England, the scheme still offers a valuable route into homeownership in Wales and is available until the end of September 2026. Buyers can secure a new-build property worth up to £300,000 with a 5% deposit, supplemented by a Welsh government equity loan of up to 20%, which remains interest-free for five years.’ 

15% of Brits believe a 20% deposit is needed to buy a house 

15% of respondents believe they need at least a 20% deposit, while 11% were unsure of how much they’d need to buy a house. Only 22% correctly identified that 5-9% deposits are achievable, and 36% answered that at least 10-14% deposit is required. 

‘Although 100% mortgages are available, a minimum deposit of 5% is typically needed to secure a mortgage. 

‘On a £300,000 property, that’s £15,000 instead of £60,000, for a 20% deposit. Equity loan schemes can allow first-time buyers to purchase with a 5% deposit. The equity loan covers a percentage of the property’s value, reducing the mortgage needed and helping to make homeownership more accessible.’ 

‘15% of survey respondents may think they need to save £54,000 or more before buying a home at an average price of £270,000. This isn’t always the case, and this misconception can discourage buyers who are otherwise ready to purchase a home.’ says Higgins. 

37% of Brits could be missing out on shared ownership schemes due to misconceptions 

37% incorrectly believe shared ownership is exclusively for first-time buyers, and 28% were not sure who is eligible. It’s available to anyone meeting income and affordability criteria. 

‘Shared ownership is available to anyone who meets the income and affordability criteria, not just first-time buyers. While it allows buyers to purchase a share of a home with a smaller deposit, it’s important to know that shared ownership also involves ongoing rent payments on the portion you don’t own. Buyers should compare all available schemes before deciding’, says Higgins. 

Equity loans vs mortgages: The key difference 

Google searches for ‘equity loan vs mortgage’ increased by 67% over three months and 150% year-on-year. 

Higgin says, ‘With a mortgage, you borrow money and pay it back with interest in monthly payments. With an equity loan, the lender takes a percentage stake in your property. You don’t make monthly payments on the equity portion, and there’s no interest accruing. When the property is sold or remortgaged, the equity loan is repaid as the same percentage of the property’s value at that point.’ 

‘For example, if a buyer receives a 20% equity loan on a £300,000 home (£60,000) and later sells the property for £400,000, the lender will receive 20% of the sale value (£80,000).’  

‘This structure reduces your monthly mortgage costs compared to borrowing the full 95%.’ 

Why equity loan schemes mostly apply to new builds 

Searches for ‘how do equity loans work’ increased by 24% year-on-year. 

Higgins says, ‘England’s Help to Buy Equity Loan scheme was restricted to new builds, and many current equity loan schemes maintain this focus. While this may narrow the options for some buyers, new build homes often come with modern construction standards, a 10-year NHBC warranty and higher energy performance certificates, which may contribute to lower running costs’. 

Schemes like Rezide offer a 15% equity loan (up to £100,000) for new-build homes in England and Wales, allowing buyers to secure an 80% mortgage with just a 5% deposit. The loan has a fixed 4% interest rate with no early repayment charges and is available to both first-time buyers and existing homeowners. You’ll own 100% of your home from day one, and the lower mortgage amount could help you access better interest rates.