How to buy your first home

2. Saving up for a house deposit

Saving for a deposit

Building up a deposit is challenging.

The minimum you’ll need to save for the deposit is 5% of the house value, so it's helpful to know what kind of property you're looking for and the rough price of it.

For example, the average house price in the UK is around £232,554. To buy a home for that value, you’d need to save at least £11,628 for the minimum 5% required by lenders.

It always helps if you’re able to save more than the minimum deposit amount. Increasing your deposit will lower the amount you need to borrow, so you’ll pay less interest back to your lender. This could help you to repay your mortgage back quicker and save you paying thousands of pounds in interest.

Putting down 10% would require you to save £23,255, but you’d have access to more mortgage deals through different lenders and it could mean you get a better interest rate on your mortgage repayments.

If you’re unsure on whether you have enough of a deposit or need some advice on how to build your deposit, our advisers can help you put plans in place. We can talk you through gifted deposits from Government schemes, investments or family. Our advice will depend on what your goals are, and when you’d like to buy. You can book a call with our advisers or speak to us on webchat.