Saving for a deposit is not easy, especially if you have one income, student debt or are paying rent already! Many lenders appreciate this and will accept gifted deposit from family members, or in some cases from other third parties. To help more people buy their first home, the Government has also introduced a number of different schemes.
If you are over 18 and under 40, you can apply for a Lifetime ISA.
With a Lifetime ISA, you can earn a 25% bonus on your savings of up £4,000 per year until you’re 50.
So long as the house that you purchase is valued at under £450,000 you can then use the savings and bonus from your Lifetime ISA towards the purchase of your first home.
If there are two of you and you are purchasing together, you can also combine your savings and bonuses from both of your Lifetime ISAs.
You can find out more about the Lifetime ISA here.
A Help to Buy Equity Loan is available that allows you to put down a 5% deposit on a new build home with a maximum purchase price which is set based on the area in which you live. The current thresholds are below.
Region Max. property purchase price
There are different Equity Loan schemes for England, Greater London, Wales and Scotland, and they all vary slightly. For more information please click here.
Help to Buy Equity Loan scheme will run until 2023.
Find out more about the Help to Buy Equity Loan here.
The Shared Ownership scheme lets you buy a share and pay rent on the rest if you can’t afford the mortgage on a home yourself.
This is ideal for anyone who might be struggling to save the money for a deposit, as you can put down a small deposit on the share you own.
Typically, again you will pay a deposit of 5% and you would get a mortgage on the share of the property that you buy (between 10-75%), making it easier for those who are trying to get a deposit together.
You could apply for Shared Ownership in England if:
The Help to Buy Shared Ownership Scheme will end in 2026.
There are no Help to Buy schemes operating in Scotland currently, however there are similar schemes, the Open Market Shared Equity Scheme and New Supply Shared Equity Scheme. Both allowing a potential contribution of up to 40% of the value of your property from the Government. To find out more about what help is available, click here to speak to an adviser today.
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Your home may be repossessed if you do not keep up repayments on your mortgage.
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