Buying a home often starts with one big question: how much deposit do you actually need?
For many buyers, especially first-time buyers, the deposit can feel like the biggest hurdle. It is not just the size of the savings target that matters. It is also knowing what mortgage options may be available, how loan-to-value works and how your deposit could affect the deals you can access.
The good news is that saving for a house deposit rarely comes down to one dramatic change. More often, it is the result of a clear target, regular saving habits and small decisions that build momentum over time.
Saving for a house deposit at a glance
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Work out your target first
Your deposit depends on the property price, the mortgage amount and the loan-to-value band you are aiming for.
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Deposit size can change your options
A 5% deposit may open the door for some buyers, while a larger deposit could improve lender choice or reduce repayments.
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Deposit boosting routes may help
Lifetime ISAs, gifted deposits, family-assisted mortgages, shared ownership or 95% mortgages could support some buyers, subject to eligibility and criteria.
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Check your mortgage position early
Seeing what you may be able to borrow can help you set a more realistic savings target before you build your plan.
How much deposit might you need?
Your mortgage deposit is the amount you put towards the property price. The mortgage covers the rest.
Lenders usually look at this through loan-to-value, known as LTV. For example, a 10% deposit usually means a 90% LTV mortgage.
Typical deposit examples might look like this:
Property price
5% deposit
10% deposit
Mortgage with 10% deposit
£200,000
£10,000
£20,000
£180,000
£250,000
£12,500
£25,000
£225,000
£300,000
£15,000
£30,000
£270,000
£400,000
£20,000
£40,000
£360,000
A 5% deposit may be enough for some buyers, subject to lender criteria and affordability. A larger deposit could reduce the amount you need to borrow and may improve the range of mortgage options available.
The right target depends on your property budget, income, affordability, credit profile and how soon you want to move.
How long could it take to save?
The time it takes to save a deposit depends on your target and how much you can realistically set aside each month.
For example, if your deposit target is £25,000 and you save £500 per month, you would save £6,000 per year. Before interest, bonuses or extra contributions, reaching £25,000 would take just over four years.
That may sound like a long time, but your progress may improve as your circumstances change. Salary increases, bonuses, reduced costs, gifted deposits or suitable savings products could all help bring the target closer.
A useful starting point is to ask:
- how much could you save each month without making everyday life unrealistic?
- could you increase that amount after a pay rise, bonus or debt repayment ends?
- would a slightly lower property budget make the deposit target more achievable?
- could checking your mortgage options now give you a clearer target?
Saving becomes easier to stick with when the goal feels connected to a real homebuying plan.
A simple house deposit saving timeline
Saving for a house deposit can feel easier when you break the journey into smaller stages. The exact timeline will depend on your income, property budget and monthly savings, but the steps often follow a similar pattern.
Month 1
Set your target
Start by estimating the type of property you may want to buy and the deposit you might need. A 5% deposit may be enough for some buyers, while a 10% deposit could give you more mortgage options.
Months 2 to 3
Build the habit
Set up a dedicated savings account and decide how much you can save each month. Automating the transfer shortly after payday can make the habit easier to keep.
Months 3 to 12
Review your progress
Check whether your savings are growing in line with your target. This is also a good time to review spending, reduce regular commitments where possible and consider whether savings products or family support could help.
12 months before buying
Check your mortgage position
You do not always need to wait until the full deposit is saved before speaking to a mortgage adviser. Checking your likely borrowing range can help you see whether your target is realistic.
3 to 6 months before applying
Get ready for lender checks
Before applying, make sure your deposit is easy to evidence, review your credit file and avoid taking on new commitments that could affect affordability.
A timeline will not be the same for every buyer, but having clear stages can make the deposit feel more like a plan and less like a distant number.
Talk through your options
Not sure which mortgage route fits? Muttuo can help you compare lenders, criteria and next steps.
Building a savings plan that works
Once you have a rough deposit target, the next step is turning it into a monthly plan.
Start by working out how much you can save each month without making everyday life unrealistic. A clear monthly amount can make the target feel more manageable and help you track whether your timeline is realistic.
Many buyers also find it useful to keep deposit money separate from everyday spending. A dedicated savings account can make progress easier to follow and may help keep the source of funds clear when you apply for a mortgage.
It is also worth allowing for the other costs of buying. Your deposit is important, but you may also need money for legal fees, surveys, moving costs, mortgage fees and anything you need shortly after completion.
Before setting your savings target, check:
- how much you can save each month comfortably
- whether your target property price is realistic
- what other buying costs you need to allow for
- whether regular commitments could affect affordability
- whether your savings are easy to evidence
A good savings plan should support the full homebuying picture: the deposit, the mortgage application and the monthly payments you may need to manage after buying.
Deposit boosting options that could help
Saving regularly is still the foundation of building a house deposit. However, some buyers may be able to use savings products, family support, government schemes or specialist mortgage options to reduce the deposit they need.
The right option depends on your circumstances, the property, lender criteria and what you can afford each month.
Lifetime ISA
A Lifetime ISA can help eligible first-time buyers boost their deposit savings.
- The government adds a 25% bonus to eligible savings
- Rules apply on age, timing and property value
Gifted deposit
A gifted deposit could help if family are able to support your purchase.
- Lenders usually need proof it is a gift
- The source of funds will need to be checked
Family-assisted mortgage
Some mortgages allow family to support your application without gifting cash outright.
- Savings or property security may be used
- The family member may have funds tied up
A 95% mortgage
A 95% mortgage could help you buy with a 5% deposit.
- A smaller deposit may help you buy sooner
- Rates, repayments and lender choice may be affected
Shared ownership
Shared ownership can reduce the deposit needed because you buy part of the property.
- You take a mortgage on the share you buy
- Rent, service charges and other costs may apply
First Homes scheme
The First Homes scheme may help eligible buyers purchase at a discount.
- The discount can reduce the amount you need to save
- Availability, eligibility and resale rules apply
New-build support
Some new-build routes may help with smaller deposits or initial costs.
- Support can vary by builder, property and lender
- Benefits may only apply for a limited period
Low-deposit mortgage
Some specialist mortgages may support buyers with limited savings.
- Criteria can be stricter than standard mortgages
- Higher borrowing can increase cost and risk
When should you check your mortgage options?
You do not always need to wait until the full deposit is saved before checking your mortgage position.
Speaking with a mortgage adviser earlier can help you understand whether your savings target is realistic. It may also show whether you are closer than you think, or whether another area needs attention before you apply.
Your deposit is only one part of the picture. Lenders may also look at:
- your income
- monthly commitments
- credit history
- employment type
- property value and type
- mortgage term
- wider affordability
This means two buyers with the same deposit may receive different outcomes. Checking early can help you build your savings plan around real mortgage options, rather than guesswork.
How Muttuo Mortgages can help
Your deposit is only one part of your homebuying plan. The right mortgage route depends on how your savings, income, affordability and property goals fit together.
Muttuo Mortgages can help you:
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work out what your deposit could mean for your property budget
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compare mortgage options from over 100 lenders
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understand whether buying with a smaller deposit could be realistic
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plan your next step if you need to save more before applying
Once your savings target becomes clearer, buying a home can start to feel less like a distant idea and more like a practical plan.
Need help
with your next mortgage step?
Not sure where you stand? Muttuo can help you check your options before you apply.
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Saving for a house deposit FAQs
These FAQs answer common questions about saving for a house deposit, including minimum deposits, 5% mortgages, gifted deposits and whether it is worth saving more before buying.
How much deposit do you need to buy a house in the UK?
Many buyers need at least 5% to 10% of the property price.
A 5% deposit may be possible with some mortgage options, subject to lender criteria and affordability. However, a larger deposit can reduce the amount you need to borrow and may improve the range of mortgage deals available.
Can you buy a house with a 5% deposit?
Yes, some buyers may be able to buy with a 5% deposit.
This usually means taking a 95% LTV mortgage. Your income, credit history, monthly commitments, property type and lender criteria will still affect whether you are accepted.
Is it better to save a 10% deposit?
A 10% deposit may give you more mortgage choice than a 5% deposit.
It can also reduce the amount you borrow, which may lower your monthly repayments. However, waiting longer to save a larger deposit is not always the right decision for everyone. It depends on your circumstances, property plans and affordability.
Can family help with a house deposit?
Yes, many buyers use a gifted deposit from family.
Lenders usually need to confirm where the money has come from and that it does not need to be repaid. If the money is a loan rather than a gift, it could affect affordability.
What is the fastest way to save for a deposit?
The fastest route is usually a combination of regular saving, reduced spending and extra income where possible.
Automating savings after payday can help make progress more consistent. It may also help to use suitable savings products and check whether your property target is realistic.
Should I save more or buy sooner?
This depends on your mortgage options, affordability and personal plans.
Saving more could improve your mortgage options, but waiting longer is not always necessary if suitable options are already available. A mortgage adviser can help you compare both routes before you decide.
