Saving a deposit is one of the biggest hurdles in buying a home. The goal is simple: put aside enough to get a mortgage.

But the path can feel endless. Rising rents, higher living costs, and unpredictable timelines make it hard to see real progress.

This guide focuses on the practical methods that consistently work. No gimmicks, no “skip your latte” advice. Just clear steps grounded in how people actually save for a deposit in the UK.

1. Automate Your Savings

Set a fixed transfer the day after payday. Treat it like a bill.

Why it works:

Saving only what’s left at the end of the month rarely leads to results. Automating removes the decision-making and protects your future deposit from your future self. Behaviour beats intention.

2. Use a Lifetime ISA (LISA)

If you’re a first-time buyer, the LISA’s 25% government bonus is one of the strongest safe returns available.

Save £4,000 a year → the government adds £1,000.

That’s £5,000 a year toward your deposit.

You can open a LISA with most banks and building societies.

Moneybox and Tembo Money also offer LISAs.

Who can open a LISA?

You must:

• Be 18–39 years old
• Be a UK resident
• Be buying your first home
• Be purchasing a property up to £450,000
• Use a repayment mortgage (LISAs can’t be used with interest-only for the government bonus)

Once opened, you can keep contributing and receiving the bonus until age 50.

Why it works

The LISA gives you a guaranteed, immediate uplift on every contribution. It’s hard to find another product with a risk-free 25% return aimed specifically at deposit saving.

3. Track Your Rent and Bills

If you’re saving with a partner or friend, keep track of who pays what.

Use a shared spreadsheet or an app. Keep it boring and visible.

Why it works:

You avoid the “quiet subsidising” dynamic where one person pays a bit more each month and progress stalls. Clear tracking = faster, fairer saving.

4. Reduce High-Interest Debts First

Lenders don’t just look at income — they look at your monthly commitments.

A £200/month loan can reduce your maximum borrowing by far more than an extra £200 saved would increase your deposit.

Why it works:

Paying down high-interest debt increases what you can borrow and strengthens your affordability profile. It can have a bigger impact than increasing the deposit itself.

5. Increase Your Income Temporarily

This doesn’t have to mean a career change. Think short-term overtime, contract work, freelance tasks, weekend shifts, or turning a hobby into paid work for 6–18 months.

Why it works:

Deposit saving accelerates fastest when both sides move: spending reduces and income rises. Even a few hundred extra a month compounds faster than expected.

6. Gifted Deposit (the allowed cheat code)

Family support is common and lenders deal with it daily.

You’ll usually need a simple “gift letter” confirming it’s not a loan and carries no claim over the property.

Why it works:

A gift can immediately lower your loan-to-value (LTV), unlocking better mortgage rates and reducing monthly payments. It can take years off your saving timeline.

7. Buy with Someone You Trust

Two incomes and two deposits can open doors neither person could reach alone.

But co-buying needs a legal agreement, usually a deed of trust, to set out what happens if someone wants to sell or contributes unevenly.

Why it works:

It increases your purchasing power without waiting years. The key is structure, not speed.

Reframing the Challenge

Saving a deposit isn’t about doing everything perfectly.

It’s about finding a mix of actions that move you forward reliably, even slowly, while keeping life manageable.

There’s no one right strategy. There’s just the one that fits your situation, your timeline, and your comfort level.

Reflect:

Which of these steps would make the biggest difference for you over the next three months?