According to estate agent Hamptons International, it takes an average couple three and a half years to save up for a deposit. For a single person, it can take 13.5 years.
The amount you need to borrow will depend on the price of the property you wish to purchase and the size of your deposit.
So you still want to save up a deposit within a year?
Saving for a mortgage deposit is a crucial step in the home-buying process. Our Mortgage Deposit Calculator is designed to help you understand how much you need to save and how long it will take to reach your goal. By entering the property price, desired deposit percentage, and your current savings, you can get a clear picture of your financial path to homeownership.
Mortgage Deposit Calculator
Find out how long it will take you to save up for a deposit.
To work out how long it will take you to save up a deposit, enter your estimated purchase price, deposit needed (10% or more) and input your current savings and how much you can save each month.
The calculator will then work out how long it will take you to save a deposit.
Table of Contents
How much deposit do you need for a house?
To buy a house in the UK, you typically need a minimum deposit of 5% of the property’s value. However, the average first-time buyer deposit is around 15%. Here’s a breakdown of deposit requirements:
- 5% deposit: Minimum for most mortgages, including the Mortgage Guarantee Scheme (available until June 2025)
- 10% deposit: Preferred by many banks, offering better interest rates
- 15% deposit: Average for first-time buyers, providing more mortgage options
- 20% or more: Gives access to the best mortgage deals with lowest interest rates
For example, on a £250,000 property:
- 5% deposit: £12,500
- 10% deposit: £25,000
- 15% deposit: £37,500
Remember, a larger deposit often means lower monthly repayments and better mortgage terms. Some government schemes, like the Help to Buy: Equity Loan, can assist first-time buyers with their deposit requirements.
Can I get a mortgage without a deposit?
Availability of no-deposit mortgages
- Skipton Building Society reintroduced a 100% mortgage in May 2023, the first since 2008 without requiring a guarantor.
- A few other lenders offer 100% mortgages with a guarantor, including Barclays, Halifax, and Lloyds Bank.
- No-deposit mortgages make up only 0.3% of the UK mortgage market.
Eligibility criteria
For Skipton’s no-deposit mortgage:- Must be a first-time buyer over 21 years old
- Prove 12 consecutive months of rent payments within the last 18 months
- No missed debt payments in the past 6 months
- Maximum loan of £600,000
Interest rates and terms
- Skipton’s 100% mortgage has a 5.49% interest rate on a 5-year fixed term
- This rate is higher compared to mortgages requiring a deposit
Pros and cons
- Allows faster entry into homeownership
- No need to save for a deposit
- Higher interest rates
- Risk of negative equity if property prices fall
- Limited availability and stricter lending criteria
Alternatives
- Low deposit mortgages (5% or 10% deposit)
- Government schemes like Help to Buy
- Guarantor mortgages
What are the best ways to save for a deposit?
- Set a clear savings goal
- Create a realistic budget
- Reduce your monthly outgoings
- Open a savings account
- Take advantage of government schemes
What savings accounts are best for mortgage deposits?
| Account Type | Benefits | Considerations |
|---|---|---|
| Lifetime ISA | 25% government bonus | £4,000 annual limit |
| Help to Buy ISA | 25% government bonus | Closed to new accounts |
| Regular saver | Higher interest rates | Limited monthly deposits |
| Fixed-rate bond | Higher interest rates | Money locked away |
How can you cut down on expenses?
- Review and reduce bills (energy, phone, broadband)
- Cancel unused subscriptions
- Cook at home instead of eating out
- Use cashback credit cards for everyday spending
- Consider moving to a cheaper area or getting a flatmate
How to save for a mortgage deposit?
If you want to get on a housing ladder fast, you need to earn more money AND buy a house preferably in the North. If you can work from home, this would be ideal scenario as you do not need to commute to work.
If you want to save up a deposit within a year, here’s what you need to do:
Suggestion
Description
Amount Added to Deposit Pot (£)
- Cut down on dining out
Cook meals at home instead of eating out to save on restaurant bills.
£50-£100 per month
- Sell unwanted items
Declutter your home and sell items you no longer need on platforms like eBay or Facebook Marketplace.
Varies depending on items sold
- Take on freelance work
Offer your skills on freelance websites like Upwork or Fiverr for extra income.
Offer your skills on freelance websites like Upwork or Fiverr for extra income.
- Rent out a room
If you have a spare room, consider renting it out on platforms like Airbnb or SpareRoom.
£200-£500 per month
- Start a small business
Turn your hobby into a small business and sell products or services locally or online.
Varies depending on business
- Cut down on subscriptions
Review your monthly subscriptions and cancel any you don’t use regularly.
£10-£50 per month
- Offer tutoring services
Share your expertise by offering tutoring services in subjects you excel in.
£20-£30 per hour
- Participate in surveys
Sign up for survey websites like Swagbucks or Toluna to earn money for sharing your opinions.
£20-£50 per month
- Pet sitting or dog walking
Offer pet sitting or dog walking services in your neighbourhood for extra cash.
£10-£20 per hour
- Rent out parking space
If you have a parking space you don’t use, rent it out to commuters or local residents.
£50-£100 per month
- Babysitting services
Provide babysitting services for families in your area during evenings or weekends.
£10-£15 per hour
- Car boot sales
Sell items at car boot sales or local markets to make some quick cash from unwanted items.
Varies depending on items sold
- Online tutoring
Offer online tutoring sessions through platforms like Zoom for students who need help with their studies.
£20-£30 per hour
- House cleaning services
Start a house cleaning service for busy individuals or families in your community.
£15-£25 per hour
- Virtual assistant work
Provide virtual assistant services to businesses or entrepreneurs who need administrative support.
Varies depending on tasks
- Gardening services
Offer gardening services such as lawn mowing, weeding, and planting for neighbours or local businesses.
£15-£30 per hour
- Rent out equipment
If you have tools or equipment you rarely use, consider renting them out to others for a fee.
Varies depending on equipment
- Mobile car washing
Start a mobile car washing service where you visit clients’ homes to wash their cars onsite.
£20-£40 per car wash
- Social media management
Help businesses manage their social media accounts by creating content and engaging with followers.
Varies depending on clients
- Language translation
Offer translation services for documents, websites, or conversations in languages you are fluent in.
£10-£30 per hour
- Event planning
Use your organizational skills to offer event planning services for parties, weddings, or corporate events.
Varies depending on event size
What credit score do you need for a mortgage?
There is no set minimum credit score required for a mortgage in the UK. However, a higher credit score generally improves your chances of approval and better rates. Here’s a rough guide for credit scores considered ‘good’ by major agencies:
- Experian: 881-960
- Equifax: 420-465
- TransUnion: 604-627
Lenders consider multiple factors beyond credit scores, including:
- Deposit amount
- Income and employment status
- Debt-to-income ratio
- Age
- Property type
Even with a lower score, it may be possible to get a mortgage if other factors are favourable. Speak to a mortgage broker for personalised advice based on your specific circumstances.
Can I get a mortgage with CCJ?
Yes, you can get a mortgage with a CCJ (County Court Judgement), but it may be more challenging. Here’s what you need to know:
- Specialist lenders are more likely to consider your application than high street banks.
- The older your CCJ, the better your chances. CCJs over 3 years old are viewed more favourably.
- Satisfied CCJs (those you’ve paid off) improve your odds of approval.
- You may need a larger deposit, typically 15-25% of the property value.
- Interest rates are likely to be higher than standard mortgages.
- The number and value of CCJs affect your application. Multiple or high-value CCJs make approval harder.
- Some lenders may require CCJs to be satisfied for at least 12 months before applying.
Remember, each lender has different criteria, so it’s advisable to consult a mortgage broker specialising in bad credit mortgages for the best chances of approval.
Mortgages Through Ammar – A Leading Mortgage Broker
We recommend Ammar Mushtaq as a mortgage broker because he has helped one of our tenants purchase a property. His contact details below:
Can I get a mortgage on universal credit?
Yes, you can get a mortgage on Universal Credit in the UK, but it may be more challenging. Here’s what you need to know:
1. Eligibility: Some lenders accept Universal Credit as part of your income for mortgage applications.
2. Affordability: Lenders will assess your overall financial situation, including Universal Credit and any other income sources.
3. Deposit: A larger deposit may be required, typically 10-15% of the property value.
4. Support for Mortgage Interest (SMI): After receiving Universal Credit for 3 months, you may be eligible for an SMI loan to help with mortgage interest payments.
5. Specialist lenders: Some lenders specialise in mortgages for people on benefits, including Universal Credit.
6. Additional income: Having other sources of income alongside Universal Credit can improve your chances of approval.
7. Credit score: Maintaining a good credit score is important, as it may affect interest rates and loan terms.
What is the lowest credit score to buy a house?
There is no set minimum credit score required to buy a house in the UK. However, a higher credit score generally improves your chances of mortgage approval and better interest rates. Here’s a general guide:
- Below 560: Very poor, difficult to get a mortgage
- 560-720: Poor to fair, limited options available
- 721-880: Good, more lenders and better rates
- 881-960: Excellent, access to the best deals
Keep in mind:
- Different lenders have varying criteria
- A larger deposit can offset a lower credit score
- Some specialist lenders consider applications with lower scores
- Improving your credit score before applying can increase your options
Even with a low score, it’s possible to get a mortgage, but you may face higher interest rates or need a larger deposit. Consider speaking with a mortgage broker for personalised advice.
Is it possible to buy a house without a credit score?
Yes, it is possible to buy a house without a credit score in the UK, but it’s more challenging. Here’s what you need to know:
1. Manual underwriting: Some lenders will assess your application through manual underwriting instead of automated credit scoring.
2. Alternative evidence: You’ll need to provide proof of financial responsibility, such as:
- Employment history and stable income
- Consistent rent payments
- Utility bill payment records
- Substantial savings or assets
3. Larger deposit: Expect to need a bigger deposit, typically 15-20% or more of the property value.
4. Higher interest rates: Mortgages for those without credit scores often come with higher interest rates.
5. Specialist lenders: Building societies and niche mortgage providers are more likely to consider applications without credit scores.
6. Mortgage broker: Working with an experienced broker can help you find lenders willing to consider your unique situation.
Is it possible to buy a house with bad credit and no money?
Yes, it is possible to buy a house with bad credit and no money, but it’s extremely challenging and options are limited. Here are the key points:
1. No deposit mortgages:
– Skipton Building Society offers a 100% LTV mortgage for first-time buyers
– Requires 12 months of on-time rent payments and no missed debt payments
– Maximum loan of £600,000
2. Guarantor mortgages:
– Require a family member to secure the loan with their property or savings
– Available from some lenders for those with bad credit
3. Government schemes:
– Shared Ownership allows buying part of a property with a smaller deposit
– Right to Buy may have more lenient criteria for those with bad credit
4. Specialist lenders:
– Some lenders offer mortgages for those with poor credit history
– Higher interest rates and stricter terms are likely
5. Improving chances:
– Work with a mortgage broker specialising in bad credit
– Consider a co-signer with good credit
– Improve credit score before applying
While possible, buying a house with bad credit and no money is difficult and may come with higher costs and risks. It’s advisable to improve your financial situation before pursuing homeownership.
Can mum and dad gift deposit money?
Yes, your parents can gift you deposit money. You also need to declare who has given you the gift. Some limits apply to who can gift a deposit, and lenders will need to check that you meet their rules.
Most lenders prefer when your gifted deposit comes from a relative, such as a parent, grandparent, or sibling. Other lenders may not accept gifted deposits at all, so you need to be upfront if you are using one.
Parents can give any amount of money they wish as a gift to one or more of their children or any other family member. Some parents also choose to buy property and put it into their child’s or children’s name(s).
However, you’ll need to check if the amount your parents give does not fall below a certain annual threshold. If it does, it is likely to be subject to Inheritance Tax (IHT). Note that IHT will only be due if either of them dies within seven years of giving it.
Here at Property Saviour, you can sell quickly and confidently. We will buy any house, saving you the uncertainty of auctioning a house or selling via an estate agent. We will offer you cash, complete the purchase in 10 days or at your preferred time, cover £1,500 of your legal fees, and kindly request a positive review upon completion.
Many sellers have shared their success stories with us. Would you like to be our next success story?
At Property Saviour, we offer a quick and certain way to sell your house. We buy any house, and because we pay in cash via solicitors, there are no delays. You can complete the purchase in 10 days or at your preferred time. We will also pay £1,500 of your legal fees and kindly request a positive review upon completion.
Many sellers have shared their success stories with us. Would you like to be our next success story?
