UK Mortgage Advice: Smart Ways to Save Your Deposit Faster

One of the biggest problems first-time buyers face is saving for their mortgage deposit.

And today, I’m going to show you the exact strategies we’ve used with our clients over the years that have helped them successfully get onto the property ladder.

I’m Ifthikar Mohamed, and over the last decade, I’ve helped more than 4,000 borrowers buy their first home. So these aren’t theories — these are real strategies that actually work.

Let’s get started.

Step 1: Start With Your Bank Statements

The very first thing you need to do is review your bank statements and your credit card statements.

This will clearly show you how much you’re spending, where you’re spending it, and what you’re spending it on.

You’ll quickly realise how much of your spending is discretionary. Start by cutting down those unnecessary expenses.

Look for Duplications

I’ve seen clients paying for Netflix, Amazon Prime, and other streaming platforms at the same time. Do you really need all of them?

Pick one. Cancel the rest.

Cancel Unused Subscriptions

Go through your mobile phone bill and app subscriptions. There will be apps you don’t use, services you forgot about, and subscriptions quietly renewing every month.

That’s wasted money, and it could be going straight toward your deposit.

Step 2: Avoid Buy Now, Pay Later

Buy now, pay later schemes like Klarna can be helpful in certain situations.

But when you start using them regularly, the payments stack up, you lose track, and suddenly you owe far more than you realised.

If you’re serious about buying a home, reduce or avoid these schemes completely.

Step 3: Shop Smarter for Groceries

Here’s something supermarkets won’t like me saying: shop online.

When you walk into a supermarket, temptation is everywhere. You go in for milk and come out spending £60.

When you shop online, you stick to a list, avoid impulse purchases, and stay disciplined.

Cut Down on Takeaways

Apps like Uber Eats and Just Eat have made it so easy to overspend.

Instead, keep something simple at home, use the microwave occasionally, and plan meals in advance.

Step 4: Review Your Utility Bills

Check your gas and electricity provider, broadband, and mobile phone contract.

Another company could offer a better deal, and even saving £20–£50 per month makes a difference over 12 months.

Step 5: Avoid Credit Card Interest

Credit card interest can be between 25% and 35%. That’s extremely expensive.

If you can, pay your balance off in full each month or transfer it to a 0% balance transfer card.

Just make sure you have a plan to clear it before the 0% period ends.

Step 6: Stop Buying the Latest Phone

Every time a new model comes out, people rush to upgrade.

An older model will do the job perfectly well and cost significantly less. That difference should go straight into your deposit savings.

Step 7: Reduce Your Rent If Possible

Rent is usually your biggest expense.

If you save £200 per month on rent, that’s £2,400 per year toward your deposit.

Step 8: Save Bonuses and Pay Rises

If you receive a bonus, save it. You’re not used to living on that money anyway.

If your salary increases by £200 per month, save that £200 — that’s £2,400 per year.

Step 9: Make Your Savings Work for You

Don’t leave your money sitting in a low-interest account.

Consider high-interest savings accounts, Cash ISAs, and Investment ISAs — but always seek professional advice before investing.

Step 10: Control Entertainment Spending

Spending on pubs, restaurants, nightclubs, and social outings adds up quickly.

Cutting back here can dramatically increase your savings rate.

Final Thoughts

I’ve helped first-time buyers save their deposit in one to two years — but it requires discipline.

If you need help creating a structured savings plan or want to learn about schemes that allow you to buy with a smaller deposit, get in touch with me or my team.

And if you want to learn more about getting onto the property ladder with a small deposit, watch the next video.