How to save for a house - 8 tips

Why saving for a house matters

One of the main reasons people save money for a house is to build a significant deposit. The size of your deposit typically influences the mortgage products available to you and the amount you repay each month.

In some cases, contributing a larger deposit may also give you access to more favourable interest rates. This is why understanding how to save for a house deposit can make a meaningful difference to your mortgage options and long‑term affordability.

How much do you really need to save?

In the UK, many buyers aim for a deposit between 5% and 20% of the property price. However, it’s also important to plan for additional costs. Many first-time buyers are caught off guard by the range of upfront and ongoing expenses involved in purchasing a home. Some of these include:

• Legal and conveyancing fees

• Mortgage arrangement and survey costs

• Moving expenses, such as removals or van hire

• Initial repairs, furnishings or essential upgrades after moving in

Factoring these costs into your plans early on can help you build a more realistic picture of what saving for a house involves.

8 tips on how to save for a house

The following steps can help you manage everyday costs more effectively and make steady progress towards buying your new home.

1. Set a clear, realistic savings goal

Having a defined savings goal can make the process feel less daunting. This often starts with considering the type of home you’d like to buy, the area you’re interested in and average property prices.

Some people find it helpful to break their overall target into smaller milestones, such as monthly or quarterly goals, to make progress easier to track.

2. Create a budget and automate savings

Reviewing your income and monthly expenses can help you identify an achievable savings goal. You might look at areas such as:

• Rent, utilities and council tax

• Groceries and household essentials

• Transport and travel

• Subscriptions, memberships and standing orders

• Discretionary spending, including dining out and shopping

Some find that setting up an automatic transfer to a separate savings account helps them stay consistent. Small, regular contributions can build up to significant savings over time.

3. Reduce discretionary spending

Having a clearer overview of your finances can make it easier to identify areas where you could reduce spending. This might involve reviewing subscriptions, eating out less frequently or checking whether you could switch to more affordable providers.

4. Think about how you can increase your savings

Alongside budgeting, some buyers look for opportunities to increase the amount they can put aside. This could include taking on overtime, freelance work or setting aside bonuses, gifts or tax refunds.

It’s also worth exploring what buying schemes are available. Some initiatives focus on lowering deposit requirements or reducing the amount borrowed, which may affect how much you need to save upfront.

5. Explore Redrow’s support schemes

Redrow offers a selection of homebuyer support schemes, such as Help to Sell and Key Worker Deposit Contribution.

These schemes are designed to support both first-time buyers and existing homeowners, but availability varies by plot and development. They are also subject to eligibility criteria.

6. Keep an eye on the market

Mortgage rates and market conditions change over time. While future movements can’t be predicted, staying informed and reviewing your financial position regularly can support more considered decision-making.

Many buyers choose to speak with independent mortgage professionals as their savings grow to understand how different scenarios might affect their plans.

7. Look after your credit profile

Your credit history plays an important role in most mortgage applications. Lenders typically look for evidence of stable financial management over time.

Steps that may help include paying bills on time, avoiding unnecessary credit applications and checking your credit report for accuracy.

8. Stay focused and review progress

Saving for a home often takes time, and circumstances can change along the way. Reviewing your progress regularly allows you to adjust your approach if needed.

Some people find it helpful to reassess their savings plan every few months, update targets or acknowledge milestones reached.

FAQs about saving for a house deposit