Skip to content Go to accessibility help
We use cookies to keep our websites easy to use and relevant to our users' requirements and to enable us to learn which advertisements bring users to our website. We do NOT use cookies to collect any personal information about you. By continuing to browse our web pages, you agree that we may use cookies for these purposes. Find out more.×

Saving for a mortgage deposit

Your home may be repossessed if you do not keep up repayments on your mortgage

Tips to help you find the money required

Start saving early

Your home is usually the most expensive purchase you'll ever make, so it probably won't come as a surprise that you need to think about saving for a house as early as possible. There are specific savings accounts designed to help you save for a house deposit, such as our Help to Buy: ISA.

Save as much as possible

According to the Money Advice Service (opens in a new window), the minimum deposit needed for a mortgage is usually 5% of the price of your house, so saving for a deposit may take some time. Offering to pay a larger deposit might lower the interest rate of your mortgage. The more you save, the better.

How large a deposit you will need

Some mortgages will have a maximum loan to value, or LTV. The LTV is how much of the value of the house is paid for by the mortgage. If you pay a 10% deposit, the loan to value would be 90%. On a house costing £150,000 you'd need a £15,000 deposit to get a mortgage with a maximum 90% loan to value. You can use our online mortgage calculator to see how your deposit will affect the total repayments on your mortgage.

Choosing the right account

Once you've decided how much you can afford to save towards your deposit you should decide on which savings account will best suit your circumstances. The right account can help you to plan how to save for a mortgage. Some offer unlimited withdrawals but should you choose to choose a fixed term deposit with no withdrawals you may receive a better rate of interest.

Instant access or fixed term

Instant Access accounts accounts allow you to deposit and withdraw money as often as you like without any penalty. Since saving for a deposit for a home is usually a longer term effort Fixed Term accounts may be helpful. These will offer a better rate of interest but might require notice for you to make a withdrawal, have a minimum deposit amount or limit the number of withdrawals you can make in a year. At Yorkshire Bank withdrawals or early closure of the term deposit are not permitted under any circumstances during the fixed term. When saving for a deposit a notice period may be a useful feature, as limiting access to the money might help you leave it in the account for longer. Check the terms and conditions of our Savings accounts if you’d like to find out more.

Tax efficient savings

A cash ISA may be another option. These accounts offer some tax benefits, which could allow your savings to grow faster than they would in a regular savings account. There is a limit to how much you can pay in to an ISA in any given year.

The value of any tax benefits to you depends on your individual circumstances, the Law and Her Majesty's Revenue and Customs (HMRC) practice which are subject to change. The proceeds of an ISA are currently free from UK Income Tax and Capital Gains Tax,provided all ISA conditions are met

The costs of buying a house

Remember when planning your purchase that you're likely to need more than just the purchase price of the house.

Make the most of your deposit

If you're a first time buyer, our Help to Buy: ISA offers a helping hand with saving for a deposit for your first home.
Terms and conditions apply. Click here to see all the details of our Help to Buy: ISA.

Perseverance and planning

Saving a deposit for a new home probably won't happen overnight but with perseverance, careful planning and the right savings account it may happen sooner than you think.


More help with mortgages

Girl planning her new home

The mortgage process

Yorkshire Bank's mortgage support will make the mortgage process an easier journey for you.

Find out more about the mortgage process

Family

Financial aspects of owning a home

Tools and guides to help you understand the financial journey to your new home.

Find out more on the financial aspects of owning a home

North Queensferry

Buy-to-let mortgages explained

Is a buy-to-let property the right investment for you? Find out with our examination of the many aspects involved.

Find out more on buy-to-let mortgages


Online enquiries

Complete our online enquiry form and one of our advisors will be in touch to discuss your mortgage requirements and available options.

Online mortgage enquiry

Live chat

Got a question? Our advisors are available through live chat to help you find the answers.

Chat online now

  • Available
  • Mon-Fri 9am – 8pm,
  • Sat 9am – 5pm

Speak to an advisor

Get in touch to discover how our advisors can help you live where you love.

Call us to speak to an advisor about a query or to apply for a mortgage.

  • We're here
  • Mon-Fri 8am – 8pm,
  • Sat 9am – 5pm
  • Sun 10am – 4pm