Month: October 2025

Saving for a deposit and maintaining your weekly brunch habit might seem mutually exclusive, but they don’t have to be. All it takes is a well-thought-out savings plan – one that works with your budget and lifestyle – to make your home-buying dream a reality.

You make this city, so you should get something back. A home you can call your own. Somewhere you can put your stamp on. That’s where we come in. We built Pocket Living around the idea that everyone should have a fair opportunity to get on the housing ladder, and we’re here to help you get there.

In this blog, we’re sharing our top tips on saving for your first home, whatever your circumstances. From ISAs to bank accounts and more, we’ll help you understand everything you need to know about saving. Let’s get started.

How much do you need to save for your first home?

Before creating a savings plan, you need to know how much you need to save. Normally, you need at least 10% of the purchase price as a deposit. But there are several reasons why it’s advantageous to save for a larger deposit of 15%-20% or more, including:

Improved mortgage deals

The higher your deposit, the lower your loan-to-value (LTV). This means your mortgage lender could offer you a better interest rate.

Smaller repayments

With a larger deposit, you’ll borrow less money, meaning you’ll have smaller monthly mortgage repayments.

Better chances of getting a mortgage offer

If you have more money saved for a deposit, you’ll be more attractive to lenders when they conduct their affordability assessment on you. Plus, you’ll usually have more mortgage options to choose from.

Researching properties in your desired area will give you an idea of how much they sell for. If you’re interested in a Pocket home, remember that it will be priced lower than the surrounding market because we offer 100% ownership at a 20% discount.

Once you’ve worked out roughly how much you need to save, you can put together a realistic savings plan that will help you achieve your goal.

Ways to save for your first home

The deposit is the biggest thing you’ll need to save for when buying a home. As a first time buyer, this can seem a bit daunting, but putting a savings plan into action as soon as possible will make it more manageable. ISAs and bank accounts are a good place to start. Make sure you speak with an independent financial advisor for full details of specific ISA T&C’s.

Lifetime ISA (LISA)

A LISA is a government scheme that helps first time buyers boost their deposits. It allows you to save up to £4,000 every tax year until you turn 50, and the government will give you a yearly bonus of 25%, topping up your savings by up to £1,000.

Cash ISA

A cash ISA allows you to save without paying tax on the interest earned. At the start of each tax year, everyone in the UK aged 18 or over gets a total ISA allowance of £20,000. You can save up to this amount across all types of ISAs you have.

When it comes to cash ISAs, there are two types:

• Easy access: Also known as “instant access”, easy access Cash ISAs allow you to withdraw money whenever you want. Some are “flexible”, meaning that if you withdraw money, you can re-deposit the same amount in the same tax year without it counting towards your total ISA allowance.
• Fixed rate: With this type of cash ISA, you agree to lock your money away for a set amount of time – typically one to five years – getting a higher, fixed interest rate in return. However, if you need to make a withdrawal during the fixed term, you’ll probably be charged a penalty.

Stocks and shares ISA

Putting your money into a stocks and shares ISA means it will be invested in assets like company shares, government bonds and investment funds. The idea is that it will grow your money, and you won’t have to pay any income or capital gains tax on the profits or dividends you earn.

Due to the nature of investing, the value of your savings can go up or down. This makes it a riskier option, so it’s usually recommended to use this type of ISA for at least five years to reap the benefits.

Fixed rate bonds

Fixed rate bonds can help you grow your savings for a fixed amount of time, usually one to five years, with a guaranteed interest rate. Depending on the provider, there’s no limit to how much you can deposit each year.

The interest earned is taxable, but you can earn up to your Personal Savings Allowance (PSA), which is the total amount of interest you can earn each year across all of your bank accounts (except ISAs), without paying tax. The allowance is £1,000 for basic-rate taxpayers and £500 for higher-rate taxpayers.

Current accounts

If you need to withdraw money without notice, a current account is a good option. It allows frequent deposits and withdrawals without charges and can offer a better interest rate than an easy access savings account.

Easy access accounts

If you need flexibility, opt for an easy access savings account. You’ll be able to withdraw money whenever you like, but you’ll have a lower interest rate because of this.

Regular savings accounts

With a regular savings account, you commit to depositing a certain amount each month – typically £10 to £500. In return, you’ll receive a better interest rate than a current or easy access account, but there may be restrictions on withdrawals, depending on the provider.

There’s no denying that saving for a deposit is challenging, especially for first time buyers, as the cost of living squeezes incomes. But with some careful planning, financial advice and by taking advantage of the various savings accounts and schemes available, you can save in a way that works for you.

By offering Pocket homes at a 20% discount, we’re helping many Londoners take their first steps onto the property ladder. Explore our developments and create a My Pocket account to start your journey today.

Mortgage rates might not seem like the most interesting topic, but as a first time buyer, it’s important to understand what they are, what impacts them and how they could affect you.

At Pocket Living, we want to make sure you have all the information you need to make an informed decision about stepping onto the property ladder. So, in this guide, we’ll explore the base rate, the forecast for mortgage interest rates and what you should consider as a first time buyer before committing to a mortgage deal.

What’s the base rate?

The Bank of England (BoE) sets the base rate of interest – officially known as the Bank Rate – which influences the economy and controls inflation. The base rate dictates how much you’re charged to borrow money from banks and lenders. A higher base rate makes borrowing more expensive, while a lower base rate makes borrowing cheaper. Therefore, the base rate impacts the interest rates offered on new fixed-rate mortgages and the standard variable rate when the fixed term ends. It also influences variable-rate mortgages, causing monthly repayments to rise and fall with it.

The BoE started raising the base rate at the end of 2021 to combat rising inflation. Since then, inflation has stabilised, and the BoE began lowering the base rate in August 2024. It’s currently set at 4% and has been since August 2025, with the next announcement due on 6 November 2025.

What’s the forecast for mortgage interest rates in 2025 and 2026?

What’s happening in the world makes it difficult to predict how the economy will evolve, which is why the BoE monitors global developments closely and reviews the base rate every six weeks. Inflation is still higher than the government’s target of 2%, so future cuts to the base rate will be made “gradually and carefully”, says BoE Governor Andrew Bailey.

Because of this, it’s hard to predict what’s in store for mortgage rates for the rest of 2025 and into 2026. According to HomeOwners Alliance, forecasters are split on what’s next. On one hand, the base rate could stay at 4%, keeping mortgage interest rates similar to what’s currently on offer. On the other hand, there’s the chance of another base rate cut of 0.25% before the end of the year, which could reduce the interest rates lenders offer on mortgages. If you’re thinking about buying your first home in the next few months, we recommend speaking to an Independent Mortgage Advisor (IMA) like Censeo, who can help you secure the best mortgage interest rate.

What this means for you as a first time buyer

We’ve all experienced the impact that global developments have had on the economy in the past few years. To say it’s been a challenge for first time buyers trying to save for a deposit would be an understatement. But the good news is that inflation is stabilising, and the base rate has gradually decreased over the past two years, resulting in lower mortgage interest rates than at the height of inflation between August 2023 and July 2024, when the base rate was 5.25%.

The takeaway? Keep an eye on inflation, as it impacts everything from earnings and budgets to the base rate and subsequent mortgage rates. Staying up to date with what’s happening in the economy will help you make an informed decision about when to buy your first home.

If you’re interested in a Pocket home, explore our communities and learn more about buying with us.

Buying your first home can be a bit of a minefield. From terminology to hidden costs, there’s a lot to get your head around. 

In this blog, we’re delving into the expenses you can expect as a first-time buyer. This will give you an idea of how much you need to save alongside your deposit to purchase a Pocket home.

First-time buyer costs

Reservation fee

Once you’ve completed your affordability assessment on My Pocket and viewed an apartment you want to buy, you’ll have to submit an Expression of Interest form to enter the lottery to purchase a home. If you’re offered one of the homes, you’ll be required to pay a £500 reservation fee. 

Property survey

Once the offer details are confirmed and conveyancing starts, you may wish to book a snagging survey with a chartered surveyor. This isn’t a requirement, but it can be useful to get a clearer picture of the property and any potential issues that could arise. Typically, a new-build snagging survey costs around £375.

Mortgage broker fee

When applying for a mortgage, it’s best to seek help from an Independent Financial Advisor who can help you find the best deal. We recommend using an IFA like Censeo Financial, as they specialise in affordable homes and know which lenders are available. They charge a broker fee of up to £495, which is payable upon application.

Mortgage arrangement fee

Sometimes, banks and building societies charge mortgage arrangement fees for setting up your loan. It’s a one-off charge, typically between £1,000 and £2,000, that can unlock better interest rates. You’ll have the option to pay it upfront or add it to your total mortgage amount, but in this case, you’ll pay interest on it. 

Conveyancing fees

After agreeing your purchase, the conveyancing process begins. You’ll appoint a solicitor to act on your behalf, and they’ll undertake searches and sort out all the paperwork.

Rates vary between solicitor firms, but you can expect to pay between £1,500 and £2,500 in conveyancing fees for a new-build leasehold property.

Stamp duty 

Stamp Duty Land Tax (SDLT) is the tax you pay on property purchases above a certain price. For first-time buyers, the threshold is set at:

• No SDLT up to £300,000
• 5% SDLT on the portion from £300,001 to £500,000

Top tip: Keep an eye out for ‘stamp duty paid’ incentives, which we sometimes offer on Pocket homes. 

Moving costs

Moving your belongings into your home will incur some costs. You can keep expenses down by doing it yourself – maybe with the help of friends or family – and reuse boxes to minimise the cost of packing materials. 

If you’re moving furniture, you may prefer to hire professional movers. The cost of this will vary depending on things like the company and distance, but you can expect to pay a few hundred pounds for a professional moving service.

How to buy a Pocket home in London

At Pocket Living, we help Londoners become homeowners by offering flats for sale with full ownership and a 20% discount off the full market value. 

Get started by creating a My Pocket account and undertaking an affordability assessment for the development you’re interested in. Additionally, check out these saving strategies to help you reach your financial goals.

An Income Boost is a little-known guarantor mortgage scheme that lets someone close to you – like a parent, sibling, or even a friend – help your application without giving (or lending) you money. Their income gets added to yours, so you can borrow more without upping your deposit. That extra boost could be the difference between “almost there” and “keys in hand.”

What is an Income Boost Guarantor Mortgage (Joint Borrower Sole Proprietor)?

It’s a type of mortgage that lets you add up to four people (usually family) to your application as joint borrowers. Their income gets included when the lender crunches the numbers, meaning a bigger loan offer for you.

But only your name goes on the property deeds – that’s the “sole proprietor” bit. So while they don’t own your home, they do share the legal responsibility for repayments. If you stop paying, they’ll need to cover it.

Why would you an Income Boost Guarantor Mortgage?

It’s smart if you’ve got great earning potential but not-so-great income right now. Example: on a £25,000 salary, you might only be able to borrow £100k–£112.5k. But with Mum’s £38,000 added in, you might be able to stretch to £252k–£283.5k. That’s up to £152k more – a game-changer for your home search.

When can a joint borrower be removed from the mortgage?

Your joint borrower can be taken off the mortgage once your financial position improves and you can afford the mortgage by yourself; for instance, if your income increases to a level where you can borrow the mortgage you need without your guarantor’s income. Alternatively, they can come off if you choose to remortgage (subject to affordability) or sell the property.

What happens if a joint borrower passes away?

If the person supporting your mortgage passes away and you’re unable to afford the repayments on your own, it could mean having to sell the property, unless you’ve planned ahead. It’s always advisable to speak to a financial advisor before setting it up.

1. Is there an age limit for joint borrowers?
2. Yes. Lenders want the mortgage cleared by age 80. So for a 35-year term, your helper needs to be 45 or younger. Something to keep in mind if Mum or Dad are stepping in.

Nope. Only the sole proprietor (you) can live in the property. Even though they’re on the mortgage, joint borrowers can’t move in.

This blog post has been written in partnership with Tembo. For more information or to book a call with Tembo, click here.

Subject to affordability and eligibility criteria. Your home may be repossessed if you do not keep up with mortgage payments.

Being added to a borrower’s Joint Borrower Sole Proprietor mortgage (Income Boost) as a joint borrower could impact the guarantor’s ability to get credit in future.