Buying a home is one of the biggest challenges many young people will face.
It can feel impossible sometimes to save up towards that hefty deposit.
Depending on where you live, a 10% deposit could be £10,000 or £50,000!
But, if buying your first house is a dream you want to fulfil then there are lots of schemes and products which could boost your ability to do so.
Some will reduce your initial spend and others will keep monthly payments at a realistic level.
Making it far easier to become a homeowner than before.
Are you looking to buy your own home using a scheme? Tell us why in the comments section...
Here are some of the schemes which could help you to get onto the property ladder:
1. Help to Buy
Most of us have heard of this Government scheme.
It provides an equity loan of up to 20% of the price of a new build home.
It’s interest-free for five years and doesn’t need to be repaid until you sell the property – a big bonus.
To take advantage of the scheme, you’ll need a 5% deposit and a 75% mortgage on the remainder of the cost.
In London the loan goes up to a whopping 40% – you’ll need a 55% mortgage and maximum prices are capped at £600,000 nationwide.
A new scheme will be operating from April next year which could change some of these numbers.
2. Discount Market Sale
Also known as Council Shared Equity, the local councils team up with new build developers to sell new homes at a lower price to those on low or middle incomes.
You could snap up a home for a reduction of 20% to 50% of the value.
Be warned: you have to already work or live in the area and the same discount on the home will also be applied when you sell.
You can pay for the house with a mortgage and don’t need to make any rent payments.
3. Shared Ownership
If you don’t earn enough, or have a big enough deposit, to buy a full home then you can part-own and part-rent these homes through shared ownership.
You basically buy a share in a home using a mortgage and then pay some rent to the other owner – usually a housing association.
You can buy more shares in the home over time and pay less rent the more of the home you own.
This is a good choice for those who don’t have a big lump sum deposit, but you can’t earn a combined income of more than £80,000 or £90,000 in London.
A new shared ownership model will be implemented next year which may see the minimum initial stake reduced from 25% to 10%.
The government also used to offer a Help to Buy ISA where your savings are topped up by 25%.
You can no longer open Help to Buy ISAs.