Mortgages
8 Tips on How to Save for a Mortgage Deposit
Most UK buyers need a deposit of at least 5-10% of the property price, though 15-20% unlocks better mortgage rates. The fastest way to get there: open a Lifetime ISA for the 25% government bonus (if eligible), set a strict budget and automate savings, cut your biggest costs (rent, subscriptions, debt), boost your income, and keep the money in a high-interest account. A clear target and automatic transfers turn a daunting sum into a steady, achievable plan.
What is your property worth?
Get genuine offers from checked & vetted buyers.
- 5–10%minimum deposit
- 15–20%unlocks better rates
- LISA 25%government bonus
- Automatesave before you spend
How much deposit you actually need
| Deposit | Loan-to-value | What it means |
|---|---|---|
| 5% | 95% LTV | Minimum for most; higher rates, fewer lenders |
| 10% | 90% LTV | More choice and better rates |
| 15-20% | 80-85% LTV | Access to the best rates |
| 25%+ | 75% LTV or lower | Top-tier rates |
On a £250,000 home, a 10% deposit is £25,000. The bigger your deposit, the lower your rate and monthly payments, so it is worth pushing past the minimum if you can.
Tip 1-3: Use the right account and automate
- Open a Lifetime ISA (LISA) if you are a first-time buyer aged 18-39: the government adds 25% on up to £4,000 a year (up to £1,000 free annually) toward a first home worth up to £450,000.
- Use a high-interest account for the rest — an easy-access or fixed-rate savings account — so your deposit grows rather than losing value to inflation.
- Automate the transfer on payday, so you save before you spend, and keep deposit savings separate from everyday money so they are harder to dip into.
Tip 4-6: Cut your biggest costs
The fastest gains come from your largest outgoings, not small daily treats:
- Reduce rent — a houseshare or a temporary move in with family can supercharge a deposit more than anything else.
- Clear expensive debt — high-interest credit costs more than savings earn, so paying it down frees future cash and helps your mortgage application.
- Trim recurring subscriptions and transport costs — review every direct debit and cancel what you do not use.
Tip 7-8: Boost income and stay disciplined
Saving faster often means earning more: a side income, selling unused items, overtime, or a pay review. Funnel any windfalls — bonuses, tax refunds, gifts — straight into the deposit rather than lifestyle. Track your progress against your target so you can watch it shrink, which keeps motivation high. Consistency over months and years, not heroics, is what builds a deposit; the buyers who get there fastest are simply the most systematic.
Other help getting onto the ladder
Beyond saving, explore the schemes that can reduce the deposit you need: shared ownership (buy a share and pay rent on the rest), and any current government or lender schemes for first-time buyers — check GOV.UK for what is available, as schemes change. A family gifted deposit, or a guarantor or joint-borrower arrangement, can also help. A mortgage broker can tell you which routes you qualify for and how much deposit each requires.
Don’t accept a lowball offer for your home
Compare genuine cash offers and investor options in minutes — free, no obligation, no fees.
Written & reviewed by Lisa Hayes, Founder
Lisa Hayes is the founder of Ready Steady Sell and an independent UK home-selling expert with over a decade helping homeowners weigh cash house buyers, property investors and the wider fast house-sale industry — without pressure or hidden fees. Every guide is reviewed for accuracy under our editorial standards.
LinkedIn · Expert commentary · In the media · Industry statistics
Frequently asked questions
Straight answers, no sales talk
How big a deposit do I need to buy a house?
A minimum of 5-10% of the price for most mortgages, but 15-20% gives access to lower rates and more lender choice, which can save a lot over the loan.
What is the best account to save a deposit in?
For eligible first-time buyers, a Lifetime ISA adds a 25% government bonus. Otherwise a high-interest easy-access or fixed-rate savings account protects your money from inflation.
How can I save for a deposit faster?
Automate savings on payday, cut your biggest costs (rent, debt, subscriptions), use a Lifetime ISA if eligible, boost your income, and direct any windfalls straight into your deposit.
How much does a Lifetime ISA add?
A 25% government bonus on up to £4,000 saved a year — up to £1,000 free annually — toward a first home worth up to £450,000, for eligible buyers aged 18-39.
Can my family help with my deposit?
Yes — a gifted deposit from family is common and accepted by most lenders with a letter confirming it is a gift. Guarantor and joint-borrower mortgages can also help.
Is a bigger deposit always better?
Generally yes — a larger deposit unlocks lower rates and smaller monthly payments. Balance it against keeping some emergency savings rather than putting every penny in.