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First-time buyers under 40 saving into a Lifetime ISA get a 25% government bonus on up to GBP 4,000 a year, for homes up to GBP 450,000: effectively GBP 1,000 free per year, with a withdrawal penalty if used for anything else before 60. Budget beyond the deposit for legal fees, surveys and moving costs. Not financial advice.
What The House Deposit Calculator Works Out
- Deposit needed: price x deposit percentage. 10% of a GBP 250,000 home is GBP 25,000. Five percent deposits reopen the door earlier at the cost of pricier mortgage rates and thinner equity; each step up to 10%, 15% and 25% unlocks progressively better rate bands.
- Time to save it: months until monthly saving, compounding at the interest rate, closes the gap between what you have and the deposit. GBP 500 a month at 4% reaches GBP 25,000 in about 47 months, with the interest shaving a few months off the naive division. The estimated month is shown.
- Lifetime ISA boost: 18 to 39 year olds buying a first home up to GBP 450,000 get a 25% government bonus on up to GBP 4,000 a year, a guaranteed GBP 1,000 a year no savings rate matches. The account must be a year old before use and non-house withdrawals before 60 are penalised at 25%.
- Custom deposit % and partner's saving (advanced): model a 25% deposit or any other figure, and add a partner's monthly saving. Couples each get their own Lifetime ISA allowance and bonus, doubling everything.
- House price growth (advanced): grows the target price every month while you save, so the deposit you are chasing moves too. UK prices have averaged around 3% to 5% a year over long periods, with flat and falling years in between.
- Saving into a Lifetime ISA (advanced): adds the 25% bonus into the timeline itself (one account or two), capped at GBP 4,000 of contributions each per year and disabled automatically if the price is above GBP 450,000, a cap that has bitten London buyers.
- Total to save including costs (advanced): conveyancing, searches, survey, mortgage fees and removals commonly add GBP 2,000 to GBP 5,000; the card shows how many extra months they cost. First-time buyers' stamp duty relief spares most purchases below its threshold.
- Mortgage you would need (advanced): the price minus the deposit at purchase, with the loan-to-value. Lenders also verify where deposits come from; gifted deposits need a letter confirming no repayment is expected.
- Monthly saving to hit your target date (advanced): the regular amount that reaches the deposit (plus costs) in your chosen number of years. A named account, automated on payday, in the best easy-access or fixed rate going, is the entire technique; deposit savings deserve safety rather than stock market timing on a short horizon.
Source and further reading: GOV.UK: Lifetime ISA.