A house deposit is typically the largest single savings target most people set themselves. In England, the average deposit for a first-time buyer is around 15-20% of the property price — a significant sum in most parts of the country. The goal can feel overwhelming, but breaking it into monthly steps makes it far more manageable.
Work out your target
Start by researching typical property prices in the area you want to buy. Use this to work out what a 5%, 10%, or 15% deposit would look like in pounds. A 5% deposit is the minimum required by most lenders for a standard residential mortgage. A larger deposit typically gives you access to better rates, which reduces your monthly repayments.
Calculate a realistic monthly savings amount
Once you have a target, divide it by the number of months you have to save. If that monthly figure is not achievable based on your current income and spending, you have two options: extend the timeline, or find ways to increase what you save each month. Both are valid. The important thing is to set a figure you will actually be able to maintain.
Explore a Lifetime ISA if you are eligible
If you are between 18 and 39, a Lifetime ISA (LISA) allows you to save up to £4,000 per tax year towards a first home. The government adds a 25% bonus on top — up to £1,000 per year. The property must be worth £450,000 or less. There are withdrawal rules to be aware of, but for eligible buyers it represents a meaningful additional boost.
Keep your deposit in a dedicated account
Keeping your deposit savings separate from your day-to-day account makes it easier to track progress and reduces the temptation to dip into it. A cash ISA or high-interest savings account helps your money grow while you build towards the target.
Remember additional buying costs
Beyond the deposit itself, you will need money for solicitor fees, a survey, mortgage arrangement fees, and potentially Stamp Duty Land Tax. These can add several thousand pounds to the total you need to save. It is worth factoring this into your target from the start.
How Ask Fin can help
The Smart Savings Builder in Ask Fin helps you set a savings goal, work out a monthly contribution, and track your progress. My Monthly Budget can help you identify where in your current spending there might be room to increase your monthly deposit saving.
Secure payment via Stripe. Cancel anytime.
Ask Fin provides general financial guidance. It does not replace regulated financial advice.