Buying your first home is one of the most exciting milestones in life — but saving for a mortgage deposit can often feel like the hardest part. With rising property prices, changing interest rates, and the cost of living to juggle, many people across the UK are asking: how much do I need, and how can I save for it faster?
At Friends Capital Ltd, we support first-time buyers every step of the way, from saving for their deposit to securing the right mortgage product. This guide breaks down how much you’ll need, how to save efficiently, and what support is available in the UK.
In the UK, most lenders require a minimum deposit of 5% of the property's value. However, putting down a larger deposit (10%, 15% or more) can give you access to better interest rates and reduce your monthly repayments.
Example:
Know your target deposit based on average property prices in your desired area. Add an extra buffer to cover additional costs like legal fees, Stamp Duty (if applicable), surveys, and moving expenses.
The Lifetime ISA is a government-backed savings account that gives you a 25% bonus on your savings (up to £1,000 per year) when used towards your first home.
Set up a direct debit from your current account to your savings account on payday. Automating your savings removes the temptation to spend and helps you stay consistent.
Cutting back on subscriptions, takeaways, or impulse buys can free up funds. Use budgeting apps to track and control spending habits.
Look for side jobs, freelance work, or temporary overtime to boost your savings rate. Even short-term income boosts can make a big difference over a year.
A gifted deposit from family is accepted by most UK lenders, provided it's clearly documented. Some lenders also offer family-assisted mortgages, where savings or equity from a relative can help support your deposit.
As covered above, this is the most valuable savings account for eligible first-time buyers.
Offers eligible first-time buyers a 30%–50% discount on new-build homes. Subject to local authority approval and income caps.
Buy a share (usually 25%–75%) of a home and pay rent on the rest. You’ll need a smaller deposit based on your share, not the full property price.
Many lenders offer 95% loan-to-value mortgages, meaning you only need a 5% deposit. These are often available through high street banks and supported by the government mortgage guarantee scheme.
It depends on your income, expenses, and savings strategy. On average, it takes UK first-time buyers between 3–5 years to save a deposit.
Generally no, unless using a guarantor mortgage or receiving a gifted deposit. Most lenders require at least a 5% deposit.
This is money given to you (often by family) to help fund your house deposit. Lenders will usually need a letter confirming it's a gift, not a loan.
Yes. A bigger deposit reduces the amount you need to borrow and can qualify you for lower interest rates and better mortgage terms.
Yes. A broker can help you understand which mortgage products suit your situation, especially if you have a small deposit or are using a government scheme.
Saving for a deposit is a big commitment, but with the right strategy and support, it’s achievable. At Friends Capital Ltd, we help first-time buyers understand their options, access the best mortgage products, and plan for a successful property purchase.
Get in touch with one of our expert mortgage advisers today to explore your deposit options and find the right mortgage solution for your first home.