Practical tips to help you save for a house deposit

Saving up for a deposit is often the toughest part of getting onto the property ladder. However, there are ways to boost your savings without cutting out too many of the things you enjoy. Here are our top tips to saving for a house deposit.

1. Create a savings plan you can stick to

It’s important to know exactly what you’re working towards, and so researching properties for sale should be your very first step. Start by researching property prices in your chosen area/s to get a realistic idea of the type of home you want to buy and how much you’ll need. In most cases, lenders require at least 5% of the property price, although 10-15% is likely to get you better mortgage deals.

Once you have your target deposit, you can then start to break it down into manageable monthly savings. Set yourself a figure that’s realistic enough to maintain consistency without putting too much pressure on yourself.

According to Rightmove, the average asking price for a first-time buyer home is just under £230,000. That means your savings could look like this:

It’s also worth researching different saving accounts to find one that suits your needs best, with the highest interest rate possible. You can then set up a monthly direct debit or standing order so you can save without thinking.

Remember, you can always make extra payments or increase your monthly amount if your circumstances change. For example, you come into some money or get a promotion at work.

2. Make the most of government schemes

There are several government funded schemes available in the UK to help first-time buyers:

Discover more information about these and all other government-backed first-time buyer schemes.

3. Reduce your monthly outgoings

Small lifestyle changes can make big differences to help bring down your outgoings. Review your bank statements to look for areas where you can cut costs. Practical ways to reduce monthly spending include:

4. Lower the cost of your rent

For many people, rent is often their largest monthly expense and can be the main reason why saving for a house deposit can be challenging. If you’re paying out a small fortune on rent each month, even small reductions in rent can have a big impact on your savings. You could:

Though it may mean sacrifices in space or independence, think of it as a temporary step towards a long-term goal.

5. Find ways to increase your income

Boosting your income is another effective way to reach your deposit goal. Consider these options:

6. Get help from family members

Many first-time buyers get help from the “Bank of Mum and Dad” or other family members in the form of a gifted deposit. A gifted deposit is a contribution towards part or all of your deposit. While it may not be possible for everyone, if it is, it can help to get you onto the property ladder.

If you’re using a gifted deposit to help buy your house, it’s important to inform both your mortgage lender and conveyancer.

After some more home buying advice?

If you’re looking for some more information on the house buying process, take a look at our handy first-time buyers guide. Or watch our short video to find out more about what’s involved in the conveyancing process.

Frequently asked questions about saving for a house deposit

How much deposit do I need to save to buy a house in the UK?

As a minimum, you will need at least 5% of the property’s purchase price as a deposit. However, some properties, such as new builds, often require a deposit of at least 10%. You should also bear in mind that the size of your deposit can affect the mortgage deals offered to you. A larger deposit means you may get preferential mortgage deals, for example better interest rates, or loan terms. Find out more about the how to get a mortgage and the different types of mortgages.

What’s the average deposit for a first-time buyer?

Rightmove states that the average asking price for a first-time buyer home is just under £230,000. Many first-time buyers put down a 5% deposit, equating to £11,500. Additionally, for a house of this value a 10% deposit would be £23,000, and a 20% deposit would be £46,000.

How long does it take to save for a deposit?

It depends on your income, outgoings, and target deposit amount. For example, if you’re able to save £300 a month it will take just over 3 years to save £11,500. If you can save £500 a month, you could save £11,500 in under 2 years, or £23,000 in just under 4 years.

What is a gifted deposit?

A gifted deposit is a contribution towards part or all of your deposit, given to you by a parent, family member, or friend. It’s given to you as a gift, not as a loan, meaning that it doesn't need to be repaid.

Can my parents give me money for a deposit?

Yes. This is known as a gifted deposit and is a common way for first-time buyers to get onto the property ladder. The process is usually straightforward, but your mortgage provider and conveyancer must both be informed so additional legal checks can be carried out. Find out more about the conveyancing process when buying a house.

How can I save faster for a house deposit?

To help speed up the saving process you can:

What is the minimum deposit for a first-time buyer mortgage?

Many lenders now offer 95% mortgages under the Mortgage Guarantee Scheme, which means you could buy a house with just a 5% deposit. However, saving a deposit of 10% or more can help you access better mortgage rates and deals.