Leave Renting and Start Owning – 5 Ways for First Time Buyers to Get on the Property Ladder


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There are a lot of first time buyers who are desperate to get on the property ladder and own their own homes. However, house prices have gone through the roof in recent years in the UK and it can be very challenging for first-time buyers to do this. That’s why many people are still living with their parents or renting properties instead.

We want you to know how you can make it happen and find out about the top 5 ways you can use to get onto the property ladder so that you can start owning your home instead of renting.

Start saving towards your deposit

If you’re looking to buy your first home, you can make sure you’re ready with a Lifetime ISA. This is a long-term saving account intended to support younger people (aged between 18 to 40) saving for their first home, or later life. You can deposit £4,000 each year with a bonus of 25% on each new payment from the government. Funds are available after a year without charge after opening the account to use as a deposit towards buying your first home.

Ask a family member to become a guarantor on your mortgage

A guarantor mortgage (also known as joint borrower sole proprietor) is where somebody else, normally a parent or close relative or friend, acts as a guarantee for the loan for you and takes on some of the risks. The guarantor will normally need to secure their home or some savings and provide extensive financial information to show they can repay the loan if things go wrong and, will be at risk if you cannot keep up with your loan repayments.

The big advantage is that guarantor deals can help you get a mortgage or allow you to borrow more. The downside is that if the borrower fails to meet the repayments, the guarantor will have to pay them.

Check if you qualify for the Help to Buy Scheme

If you’ve never owned a home before and you want to get on the property ladder, there’s good news. There’s help at hand with the government’s Help-to-Buy scheme which could give you a loan of up to 20% (40% in London) of the value of a new build home. Relaunched in April 2021, the government will lend 20% of the cost of buying a new home, and 40% in London.

The scheme is for First-time homebuyers buying a new build home from a Help to Buy registered homebuilder. You must be over 18 years old and buying a home in England. There are regional price limits on the value of the property.

Consider a Shared Ownership purchase

Shared Ownership lets you buy a home with a mortgage that doesn’t cover the entire property. You pay rent on the part you don’t own. The rent is based on market value. Later you can buy more shares and mortgage those too. Shared ownership helps you buy a percentage of a home that’s between 10% and 75% of the home value. Later on, you could buy more of the home when you can afford it.

If you are a first-time buyer, you used to own a home but can’t afford to buy one now or are an existing shared owner looking to move in England, you could buy a home through Shared Ownership in England if your household earns £80,000 or less or £90,000 in London.

First Home Scheme

The First Homes Scheme is a new scheme designed to help local key workers and first-time buyers to buy homes at 30% less than the market price. This could save each buyer an average of £70,000, making deposits and mortgages more affordable. In some areas, the discount could be as high as 50%.

The caveat with this scheme is that whatever discount you get when you buy your home under the First Home Scheme will stay with that property forever so that every person that purchaser can benefit from the discount.

The First Home Scheme is due to roll out in the second half of 2021 and is currently being trailed in the midlands.

We're on hand to help first time buyers secure their first home

You may be able to get onto the property ladder sooner than you thought! There are many options available to you and because of this, it makes sense to talk to a qualified mortgage broker.  We will guide you through your options and help you find the most suitable deal that suits your circumstances best.

Book and appointment today or request a call back to speak to an expert adviser.

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


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