Tips for saving a deposit for your first home

Set a savings goal

Firstly, you need to understand how much you’ll need to save for your deposit. You’ll usually need a minimum of 5% of the purchase price of the house you want to buy.

The higher the deposit you save, the less you’ll need to borrow, and you’re also more likely to have access to a wider range of mortgages with lower interest rates.

Here’s an example of what a 5% deposit would be on a £300,000 house.

Don’t forget, you may also need to save extra money to cover other costs involved – like solicitor fees and decorating your new house to make it feel like home. Find out more about other fees and costs of buying your first home here.

You can also use our handy savings calculator to see how much you could save, and by when.

Look at your monthly spending

Reviewing your spending is a great habit to help you spend less and save more. Start by looking over your most recent bank statements and putting each payment into a category, to help you get an idea of your spending habits. Some ideas for your categories might be:

• Bills: your current rent payment, utilities, insurance and your phone contract.
• Food: your weekly food shop and eating out.
• Debts and loans.
• Subscriptions: this could be a streaming service for entertainment or your gym membership.
• Transport: payment for any vehicle you might own, as well as public transport.
• Hobbies and social activities: social events and outings.
• Personal: clothing and payments for personal wellbeing.

As you go through, look at any payments you make each month that could be reduced or even removed. Start by cutting the ones you no longer use and see if there are any more you can do without – just make sure you check any contracts to avoid paying cancellation fees.

Using a budget spreadsheet can help you to see your income and outgoings each month and give you an idea of how much money you have left over and might be able to save.

Don’t forget, your money coming in and money going out might change over time, so do a review of your budget every few months to help you keep on track.

Cut your cost of renting

Saving for your deposit whilst paying rent can be hard. Nearly 1 in 5 renters* spend 30 to 40% of their monthly salary on rent, so it’s not surprising that saving up for a deposit can be challenging. Renting might be your biggest monthly outgoing, so looking at ways to reduce this can help. Perhaps you’re able to stay with family and friends for a few months, so that you can put some of the money you’re saving on rent into your savings account.

*This research surveyed over 2,000 private renters from across the UK in 2025.

Shop around

From utility providers to your weekly food shop, shop around to see if you’re getting the best price for your monthly expenses. Comparison websites can be helpful and let you compare quotes from different providers for things like your gas and electricity, broadband, phone contract and even petrol.

Set yourself a challenge to try a few different supermarkets over the month and see which ones best suit your budget. If you’re a ‘throw it in the trolley’ type of shopper – try planning your meals ahead for the week to make sure you’re only buying the ingredients you need. It could save you money and food waste.

You might only save a small amount on each, but a little saving can make a big difference over a year! Why not pop any savings that you make straight into your savings account?

Set yourself a challenge

Think you could take on a ‘no spend weekend’? How about no takeaways for a month? Setting yourself small goals can really help towards that big goal – and you’ll feel great achieving them along the way!

Search before you spend

When shopping online, spend five minutes before you check out to search around for discount codes or cashback opportunities. If you’re spending the money anyway, it’s worth seeing if you can get rewarded for it!

Pay yourself first

Setting up a direct debit straight into your savings account when you get paid is a great way to adjust your spending habits. Once your savings, bills and other payments have been made, you’ll be able to see exactly what you’re left with for the rest of the month and can choose to spend it how you like.

If you wait until the end of the month to transfer what’s left into your savings, you might find that there’s always something else to spend it on.

Sell things you don't use

Turn your clutter into cash by selling unwanted or unused items online or at your local car boot sale. Choose one room, cupboard or drawer at a time and think about selling any items that are still in a good condition. There’s plenty of online marketplaces where you can get your items in front of people for free.

Choose the right savings account

Whilst you’re working hard to save, choose a savings account that can also work hard for you. We have a range of different savings account that can help you reach your savings goal. When you add any interest you’ll earn to your savings, reaching your deposit goal might be closer than you think! Take a look at our range of savings accounts.

See what help is available

Schemes like shared ownership or low deposit mortgages could help you get a mortgage with a lower deposit, making saving for a deposit more affordable.