Your savings year by year
| Year | Saved | Deposit needed |
|---|
How much deposit do you need?
A 5% deposit is the minimum for most mortgages, but rates fall at each 5% step of loan-to-value, with the biggest improvements at 10%, 15% and 25%. Remember to save for the costs of buying too: legal fees, survey and moving, plus stamp duty if your home costs more than the first-time buyer threshold.
Getting there faster
- Lifetime ISA: the 25% bonus is the best guaranteed return available to most first-time buyers. You must open the account at least 12 months before you buy.
- Shared ownership: you only need a deposit on the share you buy. See the shared ownership calculator.
- Family help: a gifted deposit is accepted by most lenders with a signed gift letter.
- See the government schemes guide for help in each UK nation.
Assumptions
- Interest is added monthly and is tax-free, as in a cash ISA or Lifetime ISA.
- The Lifetime ISA bonus is added as you save, on up to £4,000 of contributions each year. Anything above that goes into ordinary savings.
- House prices rise steadily at the rate you choose.