Buying your first home is one of the biggest financial steps you’ll ever take, and getting the deposit together can sometimes feel like the hardest part of the mountain to climb. With the right strategies and support in place, it’s more doable and less daunting than you might think.
Understand Your Deposit Needs
Before you start saving, get clear on how much you actually need. Most lenders require a minimum 5% deposit, but aiming for 10–15% puts you in a better position for lower interest rates and more favourable mortgage terms. For example, if you’re buying a £200,000 home, that means saving between £10,000 (5%) and £30,000 (15%) for your deposit alone. Knowing your target helps you stay focused and set realistic monthly savings goals.
Use Government Schemes to Save Faster
If you’re aged 18–39, the Lifetime ISA (LISA) is one of the best and most practical tools available. You can save up to £4,000 each tax year, and the government will add a 25% bonus, up to £1,000 annually. Just make sure you’ve held the account for at least a year before using it for your first home. If you already have a Help to Buy ISA, you can continue contributing up to £200 per month and still receive the 25% bonus when you buy your first property. While this scheme is now closed to new applicants, it’s still valuable for those who enrolled in time.
Save More Efficiently
Small adjustments can lead to big savings. Start by setting up an automatic transfer from your current account to your savings every payday. This turns saving into a habit that you learn to lean into and work with.
Next, review your spending. Ditch unused streaming subscriptions, limit takeaways to once or twice a month and set a realistic weekly budget that you stick to when it comes to daily expenses. Apps like Plum or Moneybox can even round up your everyday purchases, saving the spare change without you noticing.
Look Into Affordable Housing Options
Saving is only part of the puzzle—what you’re saving for matters too. Schemes like the First Homes Scheme offer new build homes at a 30–50% discount to eligible buyers, including key workers and local residents. It’s a way to get on the property ladder without needing a huge deposit. Another option is Shared Ownership, where you buy a share (usually between 25% and 75%) of a property and pay rent on the rest. It reduces the upfront cost and deposit needed, making new homes more affordable for first-time buyers.
Final Thoughts
Saving for your first home isn’t easy, but it is more than achievable with the right mix of planning, discipline, and support. Even if it takes a long time to save, it’s always going to be worth it because the alternative (renting forever) is just throwing money away. Just ensure you start early, use the tools available and keep your end goal in sight. Remember, every step gets you closer to your very own front door.
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