House Deposit Savings Calculator UK
Find out how long to save your first home deposit — with interest and Lifetime ISA bonus.
Calculate House Deposit Savings Timeline
How Much Deposit Do I Need to Buy a House?
Most UK mortgage lenders require a minimum 5% deposit. A 10% deposit gives access to better mortgage rates, while 15–20% unlocks the most competitive deals. In 2025/26, the average UK house price is approximately £285,000 — meaning a 10% deposit is £28,500 and a 20% deposit is £57,000.
The Lifetime ISA (LISA) helps first-time buyers save for a deposit: save up to £4,000/year and get a 25% government bonus (up to £1,000/year). Maximum LISA bonus over 4 years: £4,000. Savings must be used for a first home worth up to £450,000. Use a Help to Buy ISA if you opened one before November 2019.
Frequently Asked Questions
How much deposit do I need for a first home?
Minimum 5% deposit is required by most lenders under Help to Buy and standard mortgages. A 10% deposit gives access to significantly better mortgage rates.
How long does it take to save a house deposit in the UK?
At £800/month saving toward a £28,500 deposit (10% of £285,000 average) with 4.5% interest, it takes approximately 2.8 years without a LISA, or 2.5 years with the maximum LISA bonus.
What is the Lifetime ISA (LISA) house deposit bonus?
Save up to £4,000/year in a LISA and get a 25% government bonus (up to £1,000/year). Over 4 years you can accumulate up to £4,000 in bonuses. Must be used for a first home worth up to £450,000.
What is the average UK house price in 2025?
The UK average house price was approximately £285,000 in early 2025 (Land Registry UK HPI). Regional variation is significant — London averages £530,000 vs £185,000 in the North East.
What is the 5% deposit scheme?
The Mortgage Guarantee Scheme (MGS) enables lenders to offer 95% LTV mortgages with a government guarantee. It was extended to 2025. First-time buyers and home movers can use it.
Can I use a Help to Buy ISA and LISA?
You cannot use both on the same property. The Help to Buy ISA closed to new applicants in November 2019 — existing accounts can receive bonus until 2029. LISA is the current alternative.
How much can I save in a LISA?
Up to £4,000 per tax year. The government adds 25% bonus (up to £1,000/year). The LISA must be held for at least 12 months before using for a property purchase.
What costs should I budget beyond the deposit?
Add: solicitor fees (£1,500–£3,000), survey (£300–£1,500), stamp duty (if applicable), mortgage arrangement fee (£0–£2,000), removal costs (£500–£2,500) and buildings insurance.
What mortgage LTV should I aim for?
95% LTV (5% deposit) gives access to the market. 90% LTV (10% deposit) is significantly cheaper. 75–80% LTV gives the best rates. Each 5% LTV improvement typically saves 0.3–0.5% on your mortgage rate.
Does the LISA 25% withdrawal penalty apply?
Yes — if you withdraw from a LISA for any reason other than buying a first home, terminal illness or after age 60, you pay a 25% penalty on the full amount (including bonus), which means you lose more than you gained.
What is the maximum LISA property price?
£450,000. If you buy a property over this threshold, you cannot use LISA funds without paying the 25% withdrawal penalty.
What is the best savings account for a house deposit?
Options: LISA (best if eligible), Cash ISA (tax-free savings), regular savings accounts (high introductory rates), and fixed-term bonds. Compare rates on MoneySavingExpert or Moneyfacts.