Saving for a small deposit
Even a 5% deposit can feel like a big sum when you are starting from scratch. This article covers practical strategies to help you save faster and make the most of the tools available to UK buyers.
In this guide
Setting a realistic savings target
Start by researching property prices in the area where you want to buy. If the average home costs £250,000, a 5% deposit would be £12,500. Add in estimated costs for solicitor fees, surveys, and moving, and you will have a clear target to work towards.
Breaking the total into monthly savings goals makes it feel more achievable. If you need £15,000 in two years, that is roughly £625 per month. Adjust the timeline or the target area if the numbers feel out of reach.
Using a Lifetime ISA
A Lifetime ISA lets you save up to £4,000 per year towards your first home, and the government adds a 25% bonus on top — that is up to £1,000 of free money each year. You must be aged 18 to 39 to open one and the property must cost no more than £450,000.
The bonus is paid monthly, so your money grows steadily. Just be aware that if you withdraw the funds for anything other than a first home purchase or retirement, you will face a 25% withdrawal penalty that actually leaves you worse off than if you had never used the ISA.
Gifted deposits and family help
Many first-time buyers receive help from family members towards their deposit. Lenders will accept gifted deposits provided the person giving the money signs a declaration confirming it is a gift and not a loan that needs to be repaid.
Some families use other arrangements such as a family offset mortgage, where savings held by a relative are used to reduce the interest you pay, or a joint borrower sole proprietor mortgage where a family member is on the mortgage but not the property title. Your adviser can explain which options suit your situation.
Related guides
More guides in our 95% ltv mortgage hub.
Speak to an Expert
Our calculators give you a useful estimate, but your actual mortgage and protection options depend on your full circumstances, credit history and lender criteria. Clearview Mortgage Solutions’ FCA regulated—our CeMAP-qualified advisers are on hand to explain how each calculator applies to you and to help you compare real mortgage quotes from 90+ UK lenders.
Get the right mortgage first time
90+ UK lenders · 10,000+ products
Speak to a mortgage adviser today
FCA-authorised, CeMAP-qualified. Free, no-obligation consultation.
Instant comparison from 90+ lenders. No obligation.
Clearview Mortgage Solutions
Get in contact
That's you!
Would recommend
84%
First visit
16%
Higher approval confidence
90+
UK lenders
10,000+
Products
Of our clients get the right mortgage first time
We focus on clear communication, realistic timelines and finding the right product, not just the lowest headline rate.
Get your mortgage quote
Instant comparison from 90+ lenders. No obligation.
Speak to a mortgage adviser today
FCA-authorised, CeMAP-qualified. We'll find the right product for your situation.
Speak to us
Get in contact for expert mortgage advice