Top Tips to Help You Save for a Mortgage Deposit

One of the biggest challenges first-time buyers (FTBs) face is getting a deposit together. Saving a large sum of cash while covering all your living expenses during a cost-of-living crisis is no mean feat.

Top Tips to Help You Save for a Mortgage Deposit
But having a good plan and clear goals can make this daunting task more achievable.
 
Here are some tips to help you save for a mortgage deposit.
 
Number crunch
 
You’ll need a deposit that’s at least 5% of the value of the property you wish to buy. However, some FTBs aim for 10% or even 20% so they can secure a better mortgage deal.
 
Bear in mind that you’ll also have to pay legal, surveying and mortgage arrangement fees. Depending on where in the UK you buy and the price of the property, you may also have to pay stamp duty.
 
Budget
 
Once you know how much money you need to save, take a deep dive into your income and expenditure. Identify what you can trim back on (nights out) and cut out altogether (subscriptions, gym memberships).
 
Also, explore new ways of doing things. For example, buy second-hand clothing from platforms such as Vinted and Depop instead of shopping on the high street.
 
If you’re buying with another person, discuss your income and debts. It’s important you both lay your (credit) cards on the table, as you’ll have to declare your full financial history to your lender.
 
Tech
 
Download a budgeting app (free versions are available) to help monitor your incomings and outgoings and alert you to any overspends.
 
Set up an automatic transfer so that the amount you intend to save every month goes straight into a separate account on the day you get paid.
 
Seek support
 
If there’s a chance the Bank of Mum and Dad could lend a hand, now’s the time to talk. Ensure everyone is clear as to whether the money is a gift or a loan so it doesn’t become a source of conflict later. Note: if the money you’re given is a loan, you’ll need to tell your lender.
 
Also, explore the option of living with a friend or family member to reduce or eliminate your rental bill whilst you’re saving.
 
Savings account
 
When choosing an account for your deposit, shop around for the best deal. ISAs can be a great option because you don’t pay tax on the interest you earn.
 
Another product to consider is a Lifetime ISA; they’re tax efficient, and the government gives you a top-up of cash depending on how much you save. But be warned, with Lifetime ISAs, you face a hefty penalty if you withdraw the money for any purpose other than buying a home or retiring *.
 
Looking to take your first steps onto the property ladder? Contact us here at Grey & Co today.
 
 
* Terms and conditions apply. Always read the fine print carefully before you commit.

Get in touch with us

First Name*
Last Name*
Your Email Address*
Mobile Phone*
Are you looking to*
Please enter message here*
Please confirm that it is okay for us to contact you about this information as well as products and services. (You will always be given the right to unsubscribe at any point in the future)*

Register for Property Alerts

Ever missed out on the perfect property just because you heard about it too late, or the Estate Agent never told you about it as it was slightly outside of your criteria? Never miss out again by using our “Heads Up Property Alerts”.

Latest Properties

Spacious 3 Bedroom House with extended family home and off-street parking in Monks Park, Wembley.

Guide Price

£590,000

3 Beds2 Baths2 Receptions
monks park, wembley

three bedroom semi detached house

extended family home

close to oakington manor primary school

Spacious 4-Bedroom Detached House with Garage, Sauna, and Ample Parking in Wembley

Guide Price

£1,300,000

4 Beds2 Baths3 Receptions
harrowdene road, wembley

large four bedroom house

off street parking for multiple cars

garage

Modern 3 Bedroom Terrace House in Sudbury Town Wembley - Move in Ready!

Guide Price

£600,000

3 Beds2 Baths2 Receptions
Central Road Wembley Middlesex HA0 2LJ

Beautifully Presented Modern 3 Bedroom Extended Terrace House Which is Move in Ready

Bright and Spacious Front Reception Room

Contemporary Open Plan Reception Kitchen Diner at the Rear With Access to the Rear Garden

Meet Abigail

  Hello, my name is Abigail, and I am the Grey in Grey & Co. I started working here in 2002 as a Junior Negotiator and have worked my way up the ranks since then. I took over running the company in 2014 and have been enjoying the roller coaster that is leadership ever since.   During my 20 plus years at Grey & Co I have dealt with the sale of over £100,000,000 worth of property and overseen the management of assets worth £250,000,000 for clients around the world.   I also had the pleasure of working with my father, the founder of Grey & Co, for 15 years before he sadly passed away and from him, I learnt the work hard ethic and our values today are still the ones that he founded the company on all those years ago.   Be Remarkable, Be Passionate, Be Humble and Be Better.   As a community centric boutique family agency, you couldn’t find a better partner to take with you on your property journey.

Meet All The Team

How to Save Money on Your Next Holiday

Make your holiday budget stretch further by following these tips for booking a glorious getaway.

How to Get Your Home Sold in the Next 3 Months

If you’re planning to sell your home and move this year, you need to understand the steps involved and how to maximise your chances of success. The property market rewards those who are prepared, so timing and strategy are key.

What Type of Upsizer Are You? Find Out Here

Are you thinking of upsizing in 2025? Knowing what type of upsizer you are is the first step to finding the perfect new home.