6 Smart Ways First-Time Buyers Can Save for a Mortgage Deposit Faster

Options for First-Time Buyers to Help Them Save for a Deposit

Trying to save for a mortgage deposit can feel like a mountain to climb — especially when house prices and living costs are rising. But with the right strategy and support, it’s absolutely achievable.

In this guide, we’ll explain the main savings options available to first-time buyers — including ISAs, Lifetime ISAs, and other deposit-boosting schemes — so you can take confident steps toward owning your first home.

How Much Do First-Time Buyers Need for a Deposit?

Most lenders ask for a deposit of at least 5% of the property value.
So, if you’re buying a £200,000 home, you’ll typically need at least £10,000 saved.

However, saving a bit more (say, 10–15%) can unlock better mortgage rates and lower monthly repayments. A larger deposit also gives you a stronger position if you have complex income or minor credit issues.

If you’re unsure where to start, we can help you set a realistic goal and find lenders who work with your current savings.

What Are the Best Savings Accounts for a Mortgage Deposit?

When saving for a mortgage deposit, it’s important to choose an account that helps your money grow. Different types of accounts suit different timeframes and goals.

Here are some popular options:

1. Lifetime ISA (LISA)

A Lifetime ISA is one of the best savings tools for first-time buyers. You can save up to £4,000 a year, and the government adds a 25% bonus — that’s up to £1,000 free each year.

You can use your LISA savings (plus the bonus) to buy your first home worth up to £450,000.

Who it’s best for:
People planning to buy their first home in the next few years and want a simple way to boost their savings faster.

Tip: Avoid withdrawing for anything other than your first home, or you’ll lose part of your bonus.

2. Help to Buy ISA (for existing holders only)

Although this scheme closed to new applicants, many first-time buyers still use existing Help to Buy ISAs. They work similarly to LISAs, offering a 25% government bonus up to a limit of £3,000.

Who it’s best for:
Those who opened an account before the deadline and are still saving regularly.

If you have both a Help to Buy ISA and a Lifetime ISA, you can only use the bonus from one when buying your home — but you can keep both for different savings goals.

3. Regular Saver Accounts

Many banks offer regular saver accounts with higher interest rates than standard savings accounts, as long as you deposit a set amount each month (for example, £100–£300).

Who it’s best for:
Those who want to build a disciplined saving habit and don’t mind saving over 12–24 months.

Tip: Automate your monthly transfers so you don’t miss a deposit.

4. High-Interest Easy Access Accounts

If you want flexibility while earning interest, a high-interest easy access account can be a great choice. You can withdraw money anytime — perfect if you might need to move funds into your solicitor’s account quickly when buying.

Who it’s best for:
People nearing their deposit goal or needing flexibility.

5. Cash ISAs

A Cash ISA lets you earn interest tax-free. You can save up to £20,000 per tax year across all your ISAs combined.

Who it’s best for:
Those who want tax-free interest and plan to save steadily without locking money away for too long.

6. Fixed-Rate Savings Accounts

If you don’t need immediate access to your savings, consider a fixed-rate account. These often offer higher interest in exchange for locking your money away for 1–5 years.

Who it’s best for:
People with a longer-term goal who want predictable growth.

Can You Combine Savings Schemes?

Yes — and it’s often smart to do so. For example:

  • Use a regular saver for short-term savings.
  • Add a Lifetime ISA for long-term growth and the 25% bonus.
  • Keep a small emergency fund in an easy access account so you’re not tempted to touch your deposit savings.

Mixing different accounts helps you balance growth, flexibility, and risk.

What Government Help Is Available for First-Time Buyers?

There are several government-backed schemes designed to make it easier to save and buy your first home:

Shared Ownership

Buy a share of a property (usually 25% to 75%) and pay rent on the rest. You can increase your share over time — known as “staircasing.”

First Homes Scheme

This helps local first-time buyers and key workers purchase homes at a discount of 30% to 50% off the market value.

Mortgage Guarantee Scheme

This allows lenders to offer 95% mortgages on homes worth up to £600,000, reducing the deposit needed.

Deposit Unlock

A newer scheme supported by homebuilders, also allowing purchases with just 5% deposits on new-build homes.

These options can make a big difference if you’re struggling to reach your deposit target. We cover them in more detail in our guide on first-time buyer schemes and incentives.

How Can I Save Faster for a Mortgage Deposit?

Even small adjustments to your saving strategy can make a big difference. Here are some tried-and-tested methods our clients use:

1. Automate your savings

Set up a standing order to transfer money to your savings account right after payday. Treat it like a non-negotiable bill.

2. Track your spending

Use budgeting apps to identify where you can cut costs — such as subscriptions or takeaway coffees.

3. Save windfalls

Bonuses, tax refunds, or small gifts can make a big difference when added to your deposit pot.

4. Consider a side income

Freelancing or selling unused items can help accelerate your progress.

5. Save together

If you’re buying with a partner, open a joint savings account or both use Lifetime ISAs to double your bonus potential.

What About Investing My Savings?

If you have several years before you plan to buy, investing might offer better returns than standard savings — but it carries risk.

Stocks & Shares Lifetime ISAs let you invest your savings while still getting the 25% government bonus. However, the value of investments can go down as well as up, so they’re best for people comfortable with potential fluctuations.

We always recommend speaking with a financial adviser before investing money intended for your home deposit.

How Can I Stay Motivated While Saving?

Saving can feel slow, but keeping track of progress helps.

Try these motivation boosters:

  • Set visual goals — like a tracker on your fridge or app.
  • Celebrate milestones (for example, each £1,000 saved).
  • Remind yourself what you’re working toward — your own home and financial independence.

We’re here to keep you motivated too — whether that’s reviewing your savings options or helping you plan your first mortgage application.

What If I’m Struggling to Save Enough?

Don’t panic if saving feels tough — you’re not alone.

If your income or rent makes it difficult to put money aside, there are still options:

  • Guarantor or family-assisted mortgages: A parent or relative supports your application.
  • Gifted deposits: A family member contributes towards your deposit.
  • Shared ownership or smaller property choices: These can make buying more achievable sooner.

We help first-time buyers find practical routes onto the property ladder every day — even in challenging circumstances.

Let’s explore your options together.

Final Thoughts

Saving for your first mortgage deposit is one of the biggest financial goals you’ll tackle — but it’s far from impossible.

By combining smart savings tools like Lifetime ISAs with consistent habits and the right advice, you can build your deposit faster and step confidently toward homeownership.

At Mortgage Bridge, we’ll help you understand your options, explore lender criteria, and create a clear plan that works for your circumstances.

If you’d like to see what could work for you, we’re happy to help.