Saving a house deposit takes most people several years, and the realistic timeline depends on three numbers: the deposit you need, how much you can save each month and whether you use a Lifetime ISA to add a 25% government bonus. As a guide, a £25,000 deposit (10% of a £250,000 home) takes about 50 months at £500 a month, or around 43 months if part of it goes into a Lifetime ISA.
This guide helps you set a target, shows timelines at different saving levels and explains the levers that shorten them. For a broader step-by-step plan, see our guide to saving for your first home deposit.
Step 1: set a realistic target
Start from the price of the kind of home you would actually buy in the area you want, then decide on a deposit percentage. Most lenders offer mortgages with a 5% deposit, some backed by the government's mortgage guarantee scheme, but bigger deposits usually unlock lower interest rates and smaller monthly payments.
| Home price | 5% deposit | 10% deposit | 15% deposit |
|---|---|---|---|
| £150,000 | £7,500 | £15,000 | £22,500 |
| £250,000 | £12,500 | £25,000 | £37,500 |
| £350,000 | £17,500 | £35,000 | £52,500 |
Check the other side too: how much can you borrow? Lenders look at income and outgoings, and many lend around 4 to 4.5 times household income, so the deposit plus the mortgage must reach the price. The mortgage calculator shows what the monthly payments would be.
Step 2: add the costs beyond the deposit
Your savings target should include buying costs, not just the deposit. Budget for conveyancing (solicitor) fees, a survey, mortgage arrangement or broker fees if any, and moving costs. Stamp duty may be nothing: in England and Northern Ireland, first-time buyers pay no stamp duty on homes up to £300,000 and 5% on the part between £300,000 and £500,000. Scotland and Wales have their own taxes and thresholds. The stamp duty calculator gives the exact figure, and our guide to costs beyond the deposit lists the rest.
Step 3: see how long it will take
The table shows months to reach £25,000 from zero, ignoring interest. The Lifetime ISA column assumes you pay up to £4,000 a year (£333 a month) into a Lifetime ISA and the rest into ordinary savings, with the 25% bonus added.
| Saved each month | Without Lifetime ISA | With Lifetime ISA bonus |
|---|---|---|
| £300 | 83 months (about 7 years) | 67 months (about 5.5 years) |
| £500 | 50 months (about 4 years) | 43 months (about 3.5 years) |
| £750 | 33 months | 30 months |
| £1,000 | 25 months | 23 months |
Interest on your savings will shorten these a little more. Put your own target, monthly amount and rate into the savings goal calculator to get a personal date.
Using a Lifetime ISA
A Lifetime ISA is the single biggest boost for most first-time buyers. You can open one between 18 and 39, pay in up to £4,000 a year until you are 50, and the government adds 25%, up to £1,000 a year. The rules:
- The home must cost £450,000 or less and you must be a first-time buyer.
- The account must have been open at least 12 months before you use it to buy.
- Your conveyancer requests the money for the purchase; you cannot simply withdraw it and pay it yourself.
- Withdrawing for anything else (except terminal illness or after age 60) costs 25% of the amount, which means losing more than the bonus.
- Your Lifetime ISA payments count towards your £20,000 overall ISA allowance.
Where to keep the rest of your deposit
If you plan to buy within about five years, keep the money in cash rather than investments, so a market fall does not set you back just before you buy. Good homes for deposit savings include easy-access savings accounts, regular savers for monthly contributions and Cash ISAs. Money with a UK-authorised bank or building society is protected by the FSCS up to £120,000 per person per banking group. Compare rates through our savings accounts hub.
Note that a proposed First Time Buyer ISA would replace the Lifetime ISA in future; the consultation has closed but no launch date has been confirmed, and you can still open and pay into a Lifetime ISA. Our guide to buying with a Lifetime ISA has the latest.
Ways to shorten the timeline
- Save as a couple. Two people can each open a Lifetime ISA, so a couple can get up to £2,000 a year in bonuses between them. Agree in writing how much each contributes in case you split.
- Automate it. A standing order the day after payday means the money goes before you can spend it. SYM can add a daily saving habit on top, which helps when the monthly figure feels out of reach.
- Redirect pay rises. Send at least half of every pay rise to the deposit before you get used to it.
- Cut your biggest costs. Rent is usually the largest. Moving to a cheaper place or sharing for a year can shave months off.
- Accept family help properly. Lenders accept gifted deposits with a signed gift letter confirming it is not a loan.
- Look at other routes. Shared ownership lets you buy a share of a home (often from 10%) and pay rent on the rest, which needs a smaller deposit. See our shared ownership guide.
Common reasons deposit plans stall
The most common problem is dipping into the deposit for emergencies. Keep a separate emergency fund, even a small one, so the deposit is only for the house. Another is setting a monthly amount you cannot sustain; a smaller amount every month beats a big amount for three months then nothing. Finally, check your credit file a year before you apply, register on the electoral roll and avoid new credit in the months before a mortgage application.
Saving a house deposit: frequently asked questions
How much deposit do I need for a house in the UK?
How long does it take to save for a house deposit?
Is a Lifetime ISA worth it for a house deposit?
Should I invest my house deposit?
Can my parents give me a house deposit?
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