How can first time buyers get on the property ladder with house prices constantly rising?

Finding that ever increasing deposit seems an impossible dream.

According to the Halifax the proportion of 20 to 45 years saving for a deposit has dropped from 57% to 43% due to low wages and high property prices. Resulting in more people staying in long term rental.

So what options do first time buyers have?

A shared ownership scheme

These are available through housing associations. As a buyer you can buy between 25% and 75% of the home’s value and then pay the housing association rent on the rest.

Government schemes

There are two options here

  • Equity – Help to buy. These are open to first time buyers and home movers on new build homes in England with a purchase price up to £600,00.  The borrowers must have 5% deposit to buy a new build property, the government provides a further loan of 20% of the purchase price and the loan is interest-free for the first 5 years. The borrower then needs to find a mortgage for the remaining 75% of the purchase price.


  • Guarantee Scheme – Help to buy. This is open to first-time buyers and home movers for new-build and older homes in the UK with a purchase price up to £600,00. The borrower finds 5% deposit and the government agrees to protect the lenders if borrowers default on their loans.


Get a Guarantor Mortgage or Joint Mortgages

If you join together with friends or family this can sometimes be tricky but you can get home loans with as many as four parties on the deed. This means parents can help out their children without having to live in the property. They can also use their savings as a deposit.

Other things that can help include:

  • Choosing a mortgage with a low deposit
  • Keep a clean credit record
  •  Start saving early
  • Look at buying a house in Auction

There is plenty of help and advice out there here are a few guides to getting your first mortgage and getting on that property ladder.

Money Savings Expert Top tips and advice.

Government Help and Advice All the terms and conditions

Money Advice Service An online guide for first time buyers to download.


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