A bigger deposit for your first home can help your budget stretch further, or secure lower interest rates and monthly repayments.

Here are our top tips for boosting your deposit.

Get independent mortgage advice

An independent mortgage adviser, like those at ESPC Mortgages, can offer advice on how much you need to save, and how to reach your target. They can also examine the mortgage market to find the most suitable deal, and highlight different options which may mean you don’t need to save as much as you think.

Save as much as you can

If you’re in a financial position to save money, then save as much as you can. Try calculating a monthly budget to work out what you can afford to save each month, then set up a standing order to transfer this money to your savings when you get paid.

Set up a Lifetime ISA

If you’re saving but not planning to buy just yet, you could consider a Lifetime ISA. You can save up to £4,000 a year, and get a 25% tax-free bonus from the Government – a maximum yearly bonus of £1,000.

Your Lifetime ISA must either go towards your first home or retirement. If you withdraw money for any other purpose, you won’t receive the bonus and may face penalties on the withdrawn amount.

You must have had a Lifetime ISA for at least a year in order to use the money to buy a property, so it’s best suited to those planning to buy next year.

Research different locations

Homes in popular areas can come with a premium price tag, meaning you’ll likely need a larger deposit to live there.

Research a variety of different areas to explore what places meet your needs – you might discover somewhere more affordable nearby that offers similar amenities, but at a lower price.

Paying over Home Report valuation

It is important to note that the lender will calculate the level of borrowing based on the value of the property and not the purchase price, which is often higher than the valuation. In this instance, the borrower would be expected to cover the minimum 15% deposit but also the amount paid above the property’s valuation.

As an example, if you wanted to buy a property valued at £100,000, in the present circumstances you would generally need a deposit of around £15,000. If you paid £105,000 to secure the property, you would be required to contribute the 15% deposit plus the £5,000 paid above the property’s value so a total contribution of £20,000 would be required.

Credit Score

There are ways you can improve your credit score. Paul Demarco of ESPC Mortgages says: “make sure you do not miss any payments or be late on anything like credit cards. Open up a credit card and use it but always pay it off as much as you can and leave minimal debt on it.”

Get mortgage advice today

ESPC Mortgages is a team of independent mortgage advisers based in Edinburgh. With many years of experience, they are well-placed to help you purchase your first property.

Get in touch with the team on 0131 253 2920 or fsenquiries@espc.com.

The initial consultation with an ESPC Mortgages adviser is free and without obligation. Thereafter, ESPC Mortgages charges for mortgage advice are usually £395 (£345 for first-time buyers). YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOANS SECURED AGAINST IT.

The information contained within this website is subject to the UK regulatory regime and therefore restricted to consumers based in the UK.

The Financial Ombudsman Service is available to sort out individual complaints that clients and financial services businesses aren’t able to resolve themselves. To contact the Financial Ombudsman Service, please visit www.financial-ombudsman.org.uk.

ESPC (UK) Ltd is an Appointed Representative of Lyncombe Consultants Ltd which is authorised and regulated by the Financial Conduct Authority.