This month, Tina Hughes, director of digital & savings at Yorkshire Building Society, takes a look at how you might go about saving for your first home.

Tina Hughes, Director of Savings at Yorkshire Building Society

This is a prospect that may feel daunting. With house prices still high and the cost-of-living squeezing household budgets, many potential buyers could wonder if getting on the property ladder is slipping further out of their reach. Yet saving for homeownership need not be an impossible challenge. With a clear plan and some discipline, saving for a mortgage deposit is still achievable.

Sense-check your goal

At its simplest, the first step is understanding how much you need. While many aspiring homeowners assume they need to save a substantial deposit before buying, the reality is often different. Research suggests first-time buyers believe they need an average deposit of around £67,000 before they can get on the property ladder. However, many lenders offer options requiring significantly smaller deposits, meaning homeownership may be more achievable than people realise.

In the UK, most mortgage lenders typically require a deposit of at least 5% of a property’s value, although aiming for 10% or more can often provide access to better deals and more choice. For a home costing around £283,000, a 10% deposit would be more than £28,000 – still a significant sum, but considerably less than many prospective buyers expect.

The market has also evolved in recent years, with some lenders introducing initiatives aimed at helping first-time buyers overcome deposit barriers, including products designed for those with smaller savings pots. While eligibility criteria and risks vary, these developments highlight that a large deposit is not always essential to take the first step towards homeownership. A bigger deposit can give you access to more mortgage products and potentially cheaper monthly mortgage repayments. In other words, saving longer can sometimes pay off—but buyers shouldn’t automatically assume they need tens of thousands of pounds before exploring their options. Mortgages also exist which allow family members to link some of their own savings to your loan, reducing the amount of interest you pay. A qualified mortgage broker can help you to understand what’s available to you.

Plan, but be realistic

Once you know your target, the next step is to build a realistic savings plan. This starts with taking a hard look at your finances. Reviewing your income and spending habits can highlight where your money is going each month—and where it could be redirected. Even small changes, such as reviewing subscriptions, cutting back on takeaways or impulse purchases can add up over time.

For many aspiring buyers, the cost of renting can be a big obstacle. Rent often eats up a large proportion of income, making it harder to save. One solution is to try to reduce those costs where possible. Moving into a flat share or even temporarily living with family (if it’s an option) could free up hundreds of pounds each month that can be channelled into savings. While not always ideal, such short-term sacrifices could significantly shorten the timeline to buying a home.

Choose a home for your savings

Choosing the right place to save your money also matters. For example, leaving your savings in a regular current account may earn little or no interest, whereas a dedicated savings account could help your deposit grow over time. In recent years, some providers have also introduced savings products aimed specifically at first-time buyers, offering features and incentives designed to support those working towards a home purchase.

Buyers can also take advantage of government-backed schemes, such as a Lifetime ISA, which offers bonuses on savings, giving deposits an extra boost. Combined with a disciplined savings plan and the right savings vehicle, these initiatives can help aspiring homeowners to reach their deposit goal sooner.

There are also other ways to accelerate savings. Selling unwanted items, hunting for bargains, using loyalty schemes as well as cashback apps, and switching to cheaper supermarkets can all contribute and increase disposable income. The key is consistency—small, regular contributions often prove more effective than sporadic, ambitious saving bursts.

Your spending habits matter

However, it is important to remember that saving a deposit is only part of the picture. Mortgage lenders look at a range of factors before approving an application, including credit history, existing debts and everyday spending habits. That means that it’s important to not only focus on saving but also on maintaining a healthy financial profile—paying bills on time, avoiding missed payments and keeping any borrowing under control.

Ultimately, saving for a mortgage deposit demands a blend of patience, planning and pragmatism. It may require lifestyle adjustments, financial discipline and, in some cases, a rethink of expectations about the location you choose or your property type.

The bottom line

The journey to homeownership need not be mysterious or inaccessible. Setting a clear goal, tracking your spending, and making deliberate choices about what you spend and save, can make all the difference.