Whilst in recent years it has become more difficult for first-time buyers to get on the property ladder, there is help available. SE Properties review the current schemes in place:

Help to Buy Isa 

This is a tax-free savings account where for every £200 you save, the Government will add an extra £50. You will need at least £1,600 in your account before you can claim the Government top up and the maximum bonus limit is £3,000, which is paid to your solicitor upon completion. These ISA’s are available to each first-time buyer (the individual not the household).

It is great that the 25% Government bonus is higher than general market interest rates and you can still access your cash at any time. However, the downside is that the maximum monthly saving amount is £200 so it can be slow to accumulate a good deposit with this ISA.

Help to Buy Equity Loan 

This equity loan means that the Government will lend you up to 20 per cent of your newly built home's value (or 40 per cent in London) so you will only need to put down a 5% deposit and a 75% mortgage will make up the rest. The loan is on top of a normal mortgage but it can only be used to buy a new build property and you won’t be charged loan fees on the 20% loan for the first five years of owning your home.

One good thing about this scheme is by reducing the mortgage LTV (Loan to Value) ratio to 75%, this means that you are open to more competitive rates on your mortgage.

Shared Ownership 

Shared Ownership with a housing association means you can buy a part of the property and pay rent on the remaining amount. You can buy anything from 25 to 75 per cent of the property. You cannot be a current home owner and your household must be earning less than £80,000 a year (£90,000 or less in London) to qualify for the scheme.

There are a couple of things to be aware of. Not all mortgage companies will lend Shared Ownership Mortgages, so you may need to shop around to find one that suits you. Also, as you part-buy part-rent, if you fall behind with your rent payments you could be subject to eviction.

But Shared Ownership can be a good choice if you have a limited deposit.

Starter Home Initiative 

This is a Government scheme that plans to see 200,000 new-build homes in England sold to first-time buyers aged between 23 and 40 with a 20 per cent discount by 2020. However, as of 2018, no properties have yet been built. If it ever comes to fruition, the Starter Homes Initiative will present an attractive opportunity for first-time home buyers who can't afford to pay full price for a property.