How to save for a house deposit without draining all your cash

The deposit is the visible target, but buying a home has several other costs: closing fees, taxes, surveys, moving, furnishing and the first repairs. Buyers who empty everything into the deposit often start ownership with debt.

1. Find out typical deposit requirements and closing costs where you plan to buy.
2. Create four separate targets: deposit, closing costs, moving and setup, and post-purchase emergency fund.
3. Keep your existing emergency fund intact while saving.
4. Automate a fixed transfer to the deposit account each payday.
5. Check for first-time buyer schemes or tax-advantaged accounts available in your country.
6. Reduce high-interest debt, which affects mortgage eligibility.
7. Only commit once all four targets are realistically covered.

• Revisit targets as prices and rates change.
• Put pay rises and windfalls toward the deposit before lifestyle upgrades.
• Keep saving for maintenance once you own.
• Protect your credit record throughout.

• A high-interest savings account suitable for your timeframe.
• Mortgage and closing cost calculators.
• Independent mortgage advice.

• The deposit is only one of several costs.
• Keep separate targets for each cost.
• Never spend your emergency fund on the deposit.
• Check local schemes and lender rules.