Set a concrete target

Since most lenders require a minimum 5–10% deposit (and better rates are usually available from 15–25%), working out your target house price range first lets you calculate an actual deposit figure to aim for, rather than saving vaguely "as much as possible."

Use a Lifetime ISA if you're eligible

For eligible first-time buyers aged 18–39, a LISA's 25% government bonus is one of the most effective ways to boost a deposit — see our dedicated LISA guide for the full rules and the withdrawal penalty to be aware of if plans change.

Automate your saving

Setting up an automatic transfer to a dedicated savings account on payday — before you have a chance to spend it — tends to produce more consistent results than saving whatever happens to be left at the end of the month. Even a modest, consistent amount compounds meaningfully over a year or two.

Consider a regular savings account or high-interest option

For money you're building towards a deposit over a year or two, a regular saver or a competitive easy-access/notice account can add meaningfully more than leaving it in a low-interest current account, without taking on investment risk you might not want for a short-term goal.

Gifted deposits

Many first-time buyers receive some or all of their deposit as a gift from family. Lenders typically require a signed letter confirming the money is a genuine gift (not a loan that must be repaid), and the source of the funds may be checked as part of anti-money-laundering requirements — worth arranging this documentation early rather than at the last minute during a purchase.

Don't overlook costs beyond the deposit

Solicitor's fees, surveys, and moving costs are separate from the deposit itself — build a cushion for these into your savings target so they don't come as a surprise right when you need funds for exchange and completion.

Key takeaways

  • Set a specific deposit target based on your realistic price range, not a vague savings goal.
  • A LISA's 25% bonus can meaningfully accelerate saving for eligible first-time buyers.
  • Automating transfers on payday tends to produce more consistent saving.
  • Budget separately for solicitor, survey and moving costs on top of the deposit itself.