Saving for your first home: a 5-step plan that actually works
Buying your first home feels impossible until it isn't. Here's the saving-and-application sequence we walk first-time buyers through every week.
Most first-time buyers we speak to think they're three to five years off owning. In reality, with a clear plan and a competitive savings rate, 18 months is realistic for many.
1. Know your deposit number
Lenders need 5–10% of the purchase price as a minimum deposit. On a £225,000 home, that's £11,250 at 5%. Pick the number you actually need before you start saving.
2. Pick the right account, not the popular one
A Lifetime ISA gives you a 25% government bonus on up to £4,000 a year — that's £1,000 free. Pair it with a high-rate easy-access account for the rest.
3. Automate the boring part
Set up a standing order the day after payday. Treat it as a bill you pay yourself. People who automate save 32% more than people who 'save what's left'.
4. Get a decision in principle early
A DIP takes 10 minutes online and won't affect your credit score. Knowing your borrowing ceiling stops you wasting time on properties out of reach.
5. Make the offer with confidence
Sellers prefer buyers with finance lined up. A Mosey DIP letter often tips a competing offer in your favour, even when you aren't the highest bidder.