If you want to pay around £700 mortgage per month for a £170k house:
Assuming you can get 4.75% interest rate (this is really a 'very good case scenario', 5%+ is more likely with lower LTV) and a long term of 30 years
You will need £36,000 deposit. So, you're a little way off at the moment. (But - good news, house prices are falling for the time being so all the time you've got your money earning interest and getting bigger, it will go further on what you buy!)
If you can save more you will find if you can make your deposit 10%+ you will have FAR MORE options open to you mortgage-wise.
£10k is too much for 'fees'. I moved in May and had around £4k full costs (mortgage broker fee, solicitor fee, mortgage arrangement fee, survey, etc etc). You might want to keep £2-3k back as moving-in fund for appliances, repairs, furniture, etc etc but you can definitely release a couple of k from 'fees' and put that into your deposit.
Best of luck - I think you need a bit more time for your deposit but you will get there :)