As uncertainty surrounding the UK property market can make it even more difficult for a first-time buyer to save a deposit, there are some options to consider that might make it easier.
The average price of a property in the UK is around six times the average income. Over the last 36 months, property prices have increased by about 20%, although the average salary has only risen by 6% during the same period of time, according to figures from Nationwide. A report by Halifax also shows that average property values in the UK have risen to their highest levels.
For first-time buyers who are considering a new build, the Help to Buy equity loan scheme reduces the required deposit to 5% rather than 10%. A further loan with no interest is also available from the government, for another 20% of the property value.
A Lifetime ISA, which was launched in April 2017, may also help savers who are aged between 18 and 40 years old, as the government will contribute 25% of savings made before the age of 50.
Borrowing the money from parents may be the solution for some first-time buyers, or even buying with friends. Shared ownership schemes are also available, which allow you to buy a percentage of the property and pay rent on the remainder.
CeMAP qualified mortgage advisors may be able to offer some advice to first-time buyers who are searching for affordable options when buying a home.
