A deposit is usually the hardest part of buying a first home. This page covers how long saving takes, where to keep the money so it grows (and gets a bonus if you’re eligible), and what else can help. How big the deposit needs to be is covered in how much deposit you need.
How long it takes
Before interest or any bonus, the time to reach a deposit depends only on what you save each month:
| Saving each month | After 2 years | After 3 years | After 5 years |
|---|---|---|---|
| £250 | £6,000 | £9,000 | £15,000 |
| £500 | £12,000 | £18,000 | £30,000 |
| £750 | £18,000 | £27,000 | £45,000 |
| £1,000 | £24,000 | £36,000 | £60,000 |
Interest adds to this, and a Lifetime ISA bonus adds a quarter of what you pay into it (below). Remember that the deposit isn’t the only money you need: buying costs come on top.
Where to keep a deposit
Lifetime ISA
You can use a Lifetime ISA, bonus included, towards your first home if it costs £450,000 or less, you buy at least 12 months after your first payment in, a conveyancer or solicitor acts for you and you buy with a mortgage; any other withdrawal before 60 costs a 25% charge.You can open one if you’re 18 or over and under 40, and pay in until you’re 50. What you pay in counts towards your £20,000 ISA allowance for the year. To use it for your first home:
- The home costs £450,000 or less.
- You buy at least 12 months after your first payment into the Lifetime ISA.
- A conveyancer or solicitor acts for you, and the ISA provider pays the money straight to them.
- You're buying with a mortgage, and not a private mortgage from your spouse, civil partner or a close relative.
- If you buy with someone who also has a Lifetime ISA, you can both use yours, as long as you're both first-time buyers.
- Any other withdrawal before age 60 (unless you're terminally ill) costs a 25% charge on the amount you take out, which takes back more than the bonus.
Five years of the maximum is £20,000 of your own money plus £5,000 of bonus, before interest or growth, and a couple buying together can each have one. Our Lifetime ISA guide covers choosing a provider, and LISA or ISA for a deposit compares the two.
Cash ISAs and savings accounts
Savings above the LISA limit, or money you may need before you’re ready to buy, can go in a cash ISA (interest is tax-free, within the £20,000 yearly allowance) or an ordinary savings account. Regular savers often pay more but cap how much you can add each month; fixed-rate accounts lock the money away until a set date, which suits a deposit only if that date comes before you need it.
From 6 April 2027 the most you can put into cash ISAs each year is £12,000 if you’re under 65, within the same overall allowance.
A deposit can grow large enough to pass the FSCS limit, so it’s worth knowing that The FSCS protects up to £120,000 per person at each authorised bank, so brands that belong to the same bank share one limit: for example Halifax and Bank of Scotland share one, while Lloyds Bank has its own; NatWest and Royal Bank of Scotland are separate banks; and Virgin Money now shares Nationwide's.
An existing Help to Buy ISA
Help to Buy ISAs are closed to new savers; if you already have one you can pay in up to £200 a month until November 2029, and the 25% bonus (up to £3,000) must be claimed by November 2030 on a first home costing up to £250,000 (£450,000 in London).- The home costs up to £250,000 (£450,000 in London).
- It will be the only home you own, and you intend to live there.
- You can pay in until November 2029 and claim the bonus until November 2030; your conveyancer claims it.
- If you also have a Lifetime ISA, you can use the government bonus from only one of them for your first home.
Help from family
A parent or relative can give or lend you part of the deposit, or help in other ways such as a guarantor or family-backed mortgage. Lenders will want to know where the money came from and whether it has to be repaid. The options, and their tax and legal side, are in helping your child buy a home.
If saving 10% is out of reach
- Buy with a 5% deposit. The government made its Mortgage Guarantee Scheme permanent in July 2025 to keep 95% mortgages available; see buying with a 5% deposit.
- Buy a share. With shared ownership the deposit is a percentage of the share you buy, not the whole home.
- Look for a discount. First Homes are sold below market value, so the deposit is a percentage of a lower price.
Related guides
- First-time buyers guide: costs, deposits, schemes and stamp duty relief in one place
- Buying with a 5% deposit: 95% mortgages and the Mortgage Guarantee Scheme
- Helping your child buy a home: gifts, loans, guarantor and family mortgages
- Lifetime ISA guide
- How much deposit do I need?
Your home may be repossessed if you do not keep up repayments on your mortgage. PocketWise provides information and guidance, not financial advice. Seek independent mortgage advice before making decisions about borrowing.