Saving For a Deposit | Royal Bank of Scotland

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Saving for your deposit

Getting into the savings habit

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

Royal Bank mortgages are available for over 18s.

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Saving a deposit

When you’re not on the property ladder, getting together the deposit you need to buy your first home can be a real struggle. We’ve put together these tips to help you get started.

How much do you need?

The first thing to do is work out what you could realistically spend on your first home. You’ll need at least 5-10% of this to put down as a deposit. You’ll also need to make sure you have enough savings to cover other costs like LBTT, solicitor or conveyancer fees, property valuation and surveys. Remember, the bigger your deposit, the smaller your mortgage loan will be and the less interest you’ll pay in the long term. A larger deposit could help you get a better mortgage deal.

Set yourself a savings goal

It can be hard work but getting into the regular habit of saving will show mortgage lenders that you can manage your finances. Decide what type of property you’re looking for and start looking around. Work out how much deposit you’ll need. If you have a Royal Bank of Scotland savings account and are registered for Digital Banking, you can use our Savings Goal tool to track your progress.

Consider your options

Could you borrow some money from your mum and dad? Or could you move back home to save money on rent? If that’s not ideal, could you buy with a friend or family member? There are also Government-backed schemes specially designed to help first-time buyers. Work out the right option for you.

Cut back where you can

Are there any little luxuries that you could cut back on to reach your goal quicker? Cancel unused gym memberships, stop buying things like bottled water and new clothes if you don’t need them. Cut out the mid-week takeaways. Scrutinise your food shopping. Switch to cheaper brands for the products you’re not fussy about. You’ll be amazed how quickly all the little savings add up. 

Create a budget and stick to it

Take a look at how much money you have coming in each month and write down all your monthly expenses to get an accurate picture of exactly what you’re spending your hard-earned cash on. Use our budget calculator to work out if you could be saving more.

Start saving

Set up a standing order to transfer money to savings account as soon as you’ve been paid. That way you won’t be tempted to treat yourself or overspend every payday. The more savings you have to put towards your deposit the better because a larger deposit could mean you could get a mortgage deal with more affordable monthly payments.

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