How to save for a house deposit: a step-by-step plan

How much deposit do you need?

Before you work out how to save for a house deposit, you need a target. That depends a lot on where you're buying. Two terms first:

• Deposit: the part of the price you pay with your own money rather than the mortgage.
• Loan-to-value (LTV): the mortgage as a percentage of the home's value. A €270,000 mortgage on a €300,000 home is 90% LTV.

In the Netherlands

In the Netherlands, your mortgage may not be higher than the value of the home, so you can borrow up to 100% loan-to-value. But that doesn't mean you can buy with no savings. According to Wijzer in geldzaken, the Dutch government-backed money information platform, the buyer's costs, known as kosten koper, must be paid yourself, and you can't borrow for them.

Buyer's costs include, among others:

• Transfer tax (overdrachtsbelasting): 2% of the home's value. Buyers under 35 may be exempt once if the home is worth no more than €555,000 (2026 limit), according to Wijzer in geldzaken.
• Notary fees for the transfer deed and the mortgage deed.
• Usually also a valuation report and mortgage advice fees.

On a €350,000 home, for example, 2% transfer tax alone is €7,000 if you don't qualify for the starter exemption. Ask a notary and an adviser for quotes to estimate the rest.

If you use NHG (Nationale Hypotheek Garantie), a national mortgage guarantee that acts as a safety net if you can't pay your mortgage because of, for example, a divorce or disability, the limit for 2026 is a mortgage of €470,000, according to the Dutch government. The one-off fee is 0.4% of the mortgage amount. On a €350,000 mortgage that's €1,400, which you also need to plan for.

Anything you save beyond the buyer's costs lowers the amount you need to borrow, and with it your monthly payments.

In the UK

In the UK, mortgages for buyers with a deposit as small as 5% exist. The government has introduced a permanent Mortgage Guarantee Scheme to support lenders offering 91 to 95% loan-to-value mortgages, according to GOV.UK. On a £250,000 home, a 5% deposit is £12,500 and a 10% deposit is £25,000.

A bigger deposit means a lower loan-to-value, which can widen the choice of mortgage deals available to you. You'll also need money for costs on top of the deposit, such as legal fees, surveys and, depending on the price and your situation, Stamp Duty Land Tax. Check current rules on GOV.UK before you set your target.

How to save for a house deposit in 6 steps

1. Work out your target. Estimate the price of the home you're aiming for, add the costs you must pay yourself, and add any deposit you want to put down. That's your target.
2. Set a deadline and a monthly amount. Divide the target by the months until you want to buy. This tells you whether your timeline is realistic.
3. Open a separate savings account. Keep the deposit away from your spending money and from your emergency fund. Buying a home comes with surprise costs, so you'll still want that buffer afterwards.
4. Automate the transfer on payday. Save first, before you spend. A standing order on the day your salary arrives makes it happen without willpower.
5. Find extra money in your budget. Look at your biggest fixed costs first. Our guide on how to make a budget helps you find room, and our list of ways to save money every month has 25 ideas. Send pay rises, holiday pay and windfalls straight to the deposit account.
6. Review every six months. House prices, mortgage rules and your income change. Check your progress and adjust the target or the timeline.

A worked example: €30,000 in 4 years

Say you want €30,000 in four years: enough to cover buyer's costs and put some money toward the price of the home.

How the timeline changes the monthly amount, without interest:

If €625 a month isn't realistic, you have three levers: save for longer, aim for a lower target, or raise your income. Saving together with a partner can halve the amount each of you needs to find.

Where to keep your deposit

If you plan to buy within about five years, most savers keep their deposit in savings accounts, not investments. The reason is timing: you'll need the money on a specific date, and you can't wait for markets to recover if they fall just before you buy.

Options to compare:

• Easy-access savings account. You can withdraw any time. Rates are often lower.
• Fixed-term deposit. A higher rate in return for locking the money away. Only use it for money you're sure you won't need before the term ends.
• Several accounts or banks. Useful if your deposit grows above the protection limit.

In the Netherlands, savings are protected up to €100,000 per person per bank by the deposit guarantee scheme. When you buy or sell your own home, there is additional temporary protection of up to €500,000, for up to six months after the money is deposited, according to De Nederlandsche Bank. In the UK, savings are protected by the FSCS under a similar scheme.

Common mistakes

• Forgetting the buyer's costs. In the Netherlands, they can't be borrowed. Make them part of your target from day one.
• Using your emergency fund as the deposit. Leave yourself a buffer for the first repairs and surprises in your new home.
• Taking on new debt while saving. A car loan or credit card balance can reduce how much you can borrow for a mortgage. Our guide on how to pay off debt fast can help clear it first.
• Not checking the rules. Limits such as the starter exemption and NHG cap change each year. Check the official sources before you make an offer.