How to save for a house deposit

Last updated 17/02/2023

How much do I need to save for a deposit?

The amount you need to save for a house deposit depends on the cost of the home you’re looking to buy. Most lenders typically ask for a deposit that’s at least 10% of the total cost of the property. However, some lenders do offer mortgage deals that only require a 5% deposit.

It can be helpful to find out how much you might expect to spend on a property in your area. If you’re buying in Wales, check out our House Price Index for the latest on house prices in Wales


How do I get started?

Once you know how much you need for a house deposit, it’s time to work out how you’ll save.

Regular saving is the key. But how long it will take to save enough depends on how much you can afford to set aside each month. Once you have that figure in mind, work out how long it would take you to save your deposit: our house saving calculator can help you do exactly that.


How do I save a house deposit quickly?

Saving isn’t always easy. Boosting your savings by making small changes like:

Switch it up: See if you can cut your household bills by using price comparison sites to find cheaper deals. Switch providers when it makes sense to do so. 
Watch what you spend: Use a budget planner to keep track of where you spend your money and try to spot opportunities to cut back and save.
Relocate: It may seem drastic, but if you’re spending above the odds on rent it can feel really hard to save a meaningful amount of money. Could you rent a cheaper place for a while, take on a lodger, or even move in with family and friends for a short time to boost your savings pot?


Extra support to save a house deposit

There are a few ways you can get help from the government as a first time buyer (as long as you're eligible):

Shared ownership: the shared ownership scheme lets you buy part of a property and pay rent on the rest. Using the scheme means you’ll be able to take out a smaller mortgage, which means the amount you need to save for your deposit will be smaller too.

Help to Buy: In England the Help to Buy scheme closed to new applicants in 2022, but the scheme is still running in Wales. It provides a loan of up to 20% of the price of the property you’re buying. You will need to put down a deposit of at least 5% and get a mortgage to cover the rest of the property's value. Help to Buy Wales is due to run until March 2023.

Lifetime ISA: you can use a Lifetime ISA to buy your first home. You must be between the age of 18 - 40 to open one of these savings products. You can then put in up to £4,000 each year, until you’re 50. As well as being tax-free, the government will add a 25% bonus to your savings, up to a maximum of £1,000 per year.


What next?

  • Explore our range of savings accounts and start saving deposit for your first home.
  • Download our free First Home Steps app for a pocket-guide to budgeting, planning, saving, and buying your first place.
  • Explore more blogs in our First Time Buyers hub.

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