Saving for a house deposit
A deposit is a fixed-date goal with a moving target, since property prices rarely stand still while you save. The calculator handles the saving side; this page covers the parts that catch people out.
Compare high-yield savings accounts
We explain exactly what to compare before you open anything - costs, protection and the traps.
Budget for more than the deposit
The deposit is the largest number but not the only one. Legal fees, survey or inspection costs, transfer taxes or stamp duty, moving costs and immediate repairs routinely add a further 3-5% of the purchase price.
Add those to your goal figure above rather than discovering them in the final month.
Cash or investments?
If you plan to buy within three years, keep the deposit in cash. A 20% market fall in the year you were going to buy is a delay of years, not months.
For a five-year-plus horizon, a cautious mixed portfolio becomes defensible - but move to cash as the date approaches rather than hoping the timing works out.
Frequently asked questions
How much deposit do I need?
It varies by country and lender, commonly between 5% and 20% of the purchase price. A larger deposit usually unlocks a better mortgage rate.
Should I use a government savings scheme?
Where one exists in your country, the bonuses are often the best return available on deposit savings. Check the rules and any withdrawal penalties.
What if prices rise while I save?
Raise the goal figure and recalculate. It is better to face that in the calculator than at the offer stage.
Is it better to buy sooner with a small deposit?
Sometimes, if it ends rent payments - but the higher rate and any mortgage insurance need to be weighed against that. Compare the total monthly cost, not just the deposit.
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