How long will it actually take to save your house deposit?
First-time buyers in Britain and America are saving for longer than any previous generation, but the picture varies dramatically by region and by how aggressively the saving is approached. Small, consistent changes to spending habits can move a purchase date by months or years. Enter your situation to see your personal timeline.
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When do most people buy?
Age of first-time home purchase by country.
How much deposit do you need for a house?
In the UK, the minimum deposit for a residential mortgage is typically 5% of the purchase price for most lenders. A 10% deposit unlocks a significantly wider range of mortgage products and lower interest rates. A 20% deposit typically secures the best available mortgage rates and avoids the additional cost of higher-LTV products. At a UK average property price of £290,000, a 10% deposit is £29,000, and a 20% deposit is £58,000.
In the US, conventional loan requirements typically ask for 20% to avoid PMI (private mortgage insurance), though FHA loans allow as little as 3.5% with a credit score above 580. At a national average home price of $420,000, a 20% deposit is $84,000 and a 5% deposit is $21,000.
Average time to save a house deposit
According to the MHCLG English Housing Survey 2022-23, the average first-time buyer in England takes approximately 10 years to save a deposit, having started saving in their mid-twenties. In London, the timeline is considerably longer. For a 10% deposit on a £290,000 UK-average property with £800/month in savings, it would take approximately 3 years from zero. For a London 10% deposit of £50,500 with £800/month, it would take approximately 5.3 years.
What is a Lifetime ISA and how does it help?
A Lifetime ISA (LISA) allows UK residents aged 18-39 to save up to £4,000 per year, with the government adding a 25% bonus (up to £1,000 per year). The LISA can be used for a first home purchase on a property worth up to £450,000. If you are saving £333/month (£4,000/year), the 25% bonus effectively adds £83.25/month, or £1,000/year. Over five years, the LISA bonus alone contributes £5,000 additional deposit. This calculator applies the LISA bonus to savings up to the £4,000/year cap.
Frequently asked questions
In the UK, mortgage rates improve significantly at LTV (loan-to-value) thresholds of 90%, 85%, 80%, and 75%. Moving from a 5% deposit (95% LTV) to a 10% deposit (90% LTV) can reduce your interest rate by 0.5-1.5 percentage points, saving tens of thousands of pounds over the full mortgage term. Moving from 10% to 20% deposit provides a further meaningful improvement. The exact rate difference changes with market conditions but the directional benefit of a larger deposit has been consistent across market cycles.
The LISA maximum contribution is £4,000 per year (£333.33 per month). The 25% bonus is paid monthly by HMRC. Both members of a couple can hold their own LISA and receive the bonus separately, allowing up to £8,000/year in contributions and £2,000/year in bonuses between them for a joint purchase. The property must be worth no more than £450,000. You must have held the LISA for at least 12 months before using it to buy a property. Withdrawing for any other reason incurs a 25% withdrawal penalty (which effectively claws back the bonus plus a small portion of your own savings due to rounding).
The answer depends on interest rates. If you carry high-interest debt (credit cards at 20%+), paying that off first typically produces a better financial outcome than saving toward a deposit earning lower returns. If your debt is at lower rates (student loans, car finance at 5-8%), the case for parallel saving alongside minimum debt repayment becomes stronger, especially if you want to access the LISA bonus. Every pound of high-interest debt carries an ongoing cost that compounds; eliminating it first gives an effective guaranteed return equal to the debt interest rate.
This calculator models saving toward a fixed target price. In reality, house prices may rise or fall while you save. If prices rise faster than your savings rate, the real deposit target moves away from you. Halifax data shows UK house prices have grown at an average of approximately 3-4% per year over the long run (and considerably more in London). If you are concerned about house price inflation eating into your progress, increase your monthly savings target or consider a lower deposit percentage to enter the market sooner.
- Halifax House Price Index 2024. Lloyds Banking Group. halifax.co.uk.
- ONS/HM Land Registry. UK House Price Index 2024. gov.uk.
- MHCLG. English Housing Survey 2022-23. gov.uk.