Saving for a Deposit
Tips and strategies to save for your home deposit faster.
How Much Do You Need?
Most lenders ask for a deposit of at least 5% of the property price, and a bigger deposit usually gets you a better rate.
A 15% to 20% deposit widens your options and lowers your monthly payments. For a £300,000 property, that is £45,000 to £60,000.
💡 Tips
- •Aim for 10% or more to reach better rates
- •A larger deposit means lower monthly payments
- •Compare how rates change at 5%, 10% and 15% deposit levels
Saving Strategies
Set up a dedicated savings account and automate a transfer on payday, so you save before you spend.
Review your spending and find areas to cut back. Small savings add up over time.
Lifetime ISA
If you are aged 18 to 39, you can open a Lifetime ISA and save up to £4,000 a year. The government adds a 25% bonus, up to £1,000 a year.
To use it for a first home, the account must have been open for at least 12 months, the home must cost £450,000 or less, and you must buy with a mortgage. If you withdraw for any other reason, a charge applies.
Help to Buy ISA
The Help to Buy ISA is closed to new savers. If you already have one, you can keep saving and claim your bonus when you buy.
💡 Tips
- •Open a Lifetime ISA early, as the 12 month rule applies
- •Check the current Lifetime ISA rules on gov.uk before you open one
- •Look at savings accounts with competitive interest rates