Finding your first home is an exciting milestone — but for many, the biggest hurdle is saving for a deposit. With rising house prices and living costs, it’s easy to feel overwhelmed before you’ve even started.
I’ve been advising and arranging mortgages for nearly 20 years, and saving for a deposit has consistently been one of the biggest challenges my clients face. Unless you’ve inherited money or have help from the Bank of Mum and Dad, getting that deposit together can feel daunting.
But here’s the good news: there are practical, manageable ways to save, and government support that can help bring your first home within reach.
1. Work Out How Much You Need
Your deposit is usually a percentage of the property’s value. Most lenders require a minimum of 5%, but if you can manage 10–20%, you’ll access better mortgage rates and lower monthly repayments.
Example:
- 5% deposit on a £200,000 home = £10,000
- 10% deposit = £20,000
Don’t forget to budget for:
- Solicitor and conveyancing fees
- Survey fees
- Stamp duty (First-time buyers in England pay no stamp duty on properties under £425,000)
- Moving costs
2. Open a Lifetime ISA (LISA)
One of the best tools for first-time buyers is the Lifetime ISA.
Key benefits:
- Save up to £4,000 per tax year
- Receive a 25% government bonus (up to £1,000 per year)
- Use the funds to buy your first home (up to £450,000) or for retirement
Eligibility:
- UK resident aged 18 to 39
- Saving for your first home
- Must hold the LISA for at least 12 months before using the funds
3. Create a Monthly Budget (And Stick to It)
Tracking your income and spending helps you find areas to cut back and redirect money towards your deposit.
Look at reducing:
- Subscriptions you don’t use
- Takeaways and coffee
- Impulse purchases
Use tools like MoneyHelper, Monzo to monitor and manage your money. Any savings? Funnel them straight into your LISA or house deposit fund.
I recently worked with a First time buyer from Southport for over 12 months helping them get into a position to buy. They have just recently collected their keys to their new home.
4. Set Up a Standing Order
Treat saving like a regular bill. Set up a standing order from your main account to your savings account right after payday. This ensures you save first — not just what’s left at the end of the month.
Consistency is key.
5. Use Government Schemes for First-Time Buyers
The government offers several schemes designed to help first-time buyers get on the ladder.
✅ First Homes Scheme
- Save 30%–50% on new-build homes
- Available to local first-time buyers and key workers
- Must live or work in the area
✅ Shared Ownership
- Buy a portion (10%–75%) of a home
- Pay rent on the remainder
- Requires a smaller deposit and mortgage
6. Increase Your Income (If Possible)
If your current income isn’t enough to save quickly, consider:
- Taking on freelance or part-time work
- Selling unwanted items online
- Asking for a raise or exploring higher-paying roles
Even small extra income streams can add up over time.
7. Build Your Credit Score
A strong credit score gives you access to more lenders and better rates.
Improve your credit score by:
- Registering to vote
- Paying bills and credit cards on time
- Staying within your credit limits
Use a service called Check My File to monitor and improve your credit rating.
Please use the link below to check your credit score. Checkmyfile will provide you with the best information as it looks at both Experian and Equifax who most of the lenders use. Its FREE for 30 days, then £14.99 a month cancel online any time.’ which you are more than welcome to use
Final Thoughts
Saving for a deposit is no easy task — I completely understand. But with a clear plan, the right tools, and a little patience, it is achievable.
Key steps to get started:
✅ Set a realistic savings target
✅ Open a LISA to get a 25% boost
✅ Explore government schemes
✅ Track your income and expenses
✅ Build and maintain your credit score
My biggest tip? Speak to a mortgage adviser early on. They can help you figure out how much you’ll need, what lenders are looking for, and what support schemes you might be eligible for.
If you want to speak to me please feel to contact me on 0777 587 4126 or email me on danile@middletonfinance.co.uk
The information contained within was correct at the time of publication but is subject to change.
Your home may be repossessed if you do not keep up repayments on your mortgage.
