Contact UsContact Us

How to Save for a Mortgage Deposit

Nicholas Mendes

2 January 2025

Here we explain everything you need to know about saving a mortgage deposit.

Video Breakdown

  • 0:06 – Introduction
  • 0:26 – How Much Do You Need for a Deposit?
  • 1:13 – Start Your Own Savings Plan
  • 1:43 – Different Ways to Consider for Boosting Your Income
  • 2:14 – Take Advantage of Government Schemes  

Dreaming of owning your first home? It starts with one key step: saving for a deposit.

For most mortgages, you’ll need between 5% and 20% of the property’s value. The bigger the deposit, the better your mortgage deal.

Start by setting a realistic savings goal. Calculate how much you can set aside each month and stick to a plan.

Cut unnecessary expenses. Think about cancelling unused subscriptions or eating out less. Small changes add up!

If possible, look for ways to increase your income. This could be through overtime, a part-time job, freelancing, or selling items you no longer need. However, keep in mind that you may be required to submit a self-assessment tax return and pay tax on the extra money you’ve made. 

Don’t forget about government schemes like Help to Buy or Shared Ownership. They can make buying your first home more affordable.

With the right plan, owning your dream home can be a reality. Let John Charcol guide you every step of the way.

Visit John Charcol for more expert advice on your mortgage journey. 

Share:

Categories:

Speak to a mortgage adviser

Fill out the short form below and choose a time that suits you. It’s a no-commitment opportunity for our experts to help you.

"*" indicates required fields

This field is for validation purposes and should be left unchanged.
We ask for your telephone number to ensure we can reach you quickly and personally, providing a more tailored and responsive experience for your needs.
+ Add further comments
Acceptance
Read full disclaimer

By submitting this form, you consent to being contacted by John Charcol for the purposes of progressing your mortgage application.

As John Charcol is part of Pivotal Growth Ltd, you can also choose to hear about other products or services offered within the group that we believe may be helpful to you.

You can change your preferences or opt out at any time. For more details, please read our cookie and privacy statement.

Please tick above if you’d like to receive these communications:

  • No obligation conversation

Ask about a second charge mortgage

"*" indicates required fields

This field is for validation purposes and should be left unchanged.
We ask for your telephone number to ensure we can reach you quickly and personally, providing a more tailored and responsive experience for your needs.
Acceptance
Read full disclaimer

1. First Charge - I understand that a first charge mortgage could be a more cost-effective alternative to a second charge and have considered this before proceeding.

2. Existing Mortgage Product - I am currently tied into a mortgage product with an early repayment charge if I choose to leave this deal early and I have investigated the possibility of a further advance from my existing lender.

3. Product Suitability - I understand that second charge mortgages may not be suitable in all situations and that advice will be provided by our second charge partner “The Loan Partnership” to help determine if this is the right solution for me.

4. Data Sharing Consent - I agree that my name and contact information can be shared with a trusted partner firm – The Loan Partnership – to receive personalised advice on second charge options.

5. Understanding of Risk - I understand the risks associated with securing other debts against my home and my home may be repossessed if I do not keep up repayments on a mortgage or any debt secured against it. I am also aware that by consolidating existing borrowing that I may be extending the terms of the debt and increasing the total amount I repay.

Please tick above if you’d like to receive these communications:

*Please note that neither John Charcol Limited nor its Appointed Representatives are providing mortgage advice as part of this enquiry. Second charge mortgage advice will be provided by The Loan Partnership FCA ref 707809. If you need to investigate first charge mortgage options, please contact John Charcol via this contact form.

  • No obligation conversation