HOUSE prices may be coming down but to secure a typical mortgage first-time buyers still need to save over £25,000.
It now costs an average £259,153 to get on the property ladder, according to the latest data from Nationwide.
While this is £14,500 lower than a year ago, buying still means years of saving for most would-be homeowners.
Record high rents and the rising cost of living have made it even harder to save enough to buy a first home.
A survey from Skipton Building Society found that two out of five renters said house prices in their area are "rising too quickly for them to keep up".
One in three told the mutual lender they are struggling to save due to increased rent – and are now having to find an extra £1,000 per year for their landlord.
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And with the average two-year mortgage rate now over 6%, for many the dream of homeownership has been fading fast.
But it is possible to make your hard-saved cash go further and secure a mortgage you can afford to repay.
From schemes designed to give first-time buyers a helping hand to 100% mortgages – here's the full list of what's available.
The 100% mortgage
It's normal to expect to save a deposit that's between 5% and 10% of the property's price.
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But for many first-time buyers it's too big a sum to be realistic.
That's why several of the big banks and building societies allow first-time buyers to borrow the full amount it costs to buy their home.
These deals are often referred to as 100% loan-to-value mortgages – because you don't need any deposit to buy.
But in almost all cases, a family member will need to help out in some way.
Some deals need parents to agree to guarantee repayments, meaning the lender will need to check their income to make sure they can afford to.
The guarantee only kicks in if you can't make a payment for any reason.
There are also a number of 100% family mortgages – some require a family member or close friend to deposit some savings with the lender for a fixed period.
Others will lend you 100% of the home's purchase price but will want to take a "charge" on a family member's home in place of a deposit.
This means that no cash changes hands but should things go wrong, the lender will be able to get their money back from your relative.
Before that happens, your home would be sold and any money you still owed the lender would be taken from your family member's home.
Either they would have to borrow money to pay back the lender or they would, in the worst case scenario, have to sell to cover any remaining debt.
There is a very serious warning that comes with taking a 100% mortgage.
If house prices fall, you could end up owing the bank more than your home is worth.
That only matters if you need to sell, or when you need to remortgage to a different lender.
But it can cause a major headache.
Back in 2008, when the global economy crashed, some people saw the value of their homes plummet.
It resulted in a wave of mortgage prisoners stuck in their homes because they couldn't afford to pay their lender back.
Even though that was 15 years ago, there are still some people trapped in this position – known as negative equity.
The 100% mortgage for renters
This is the newest type of mortgage that lets you borrow without a cash deposit.
In May, Skipton Building Society launched its Track Record 100% mortgage available to renters who were buying their first ever property.
The only catch is that the amount you can borrow is capped as your monthly repayment cannot be more than you currently pay in rent.
Earlier this week the lender confirmed that renters who owned a property more than three years ago can also apply for the deal.
To qualify you need to show you have a strong track record of paying your rent on time and in full.
The five-year fixed rate mortgage is currently 6.19% and can be taken over a maximum term of 35 years.
You'll still need some savings as there are other costs involved in buying and moving house.
These include legal fees, valuation fees the cost of a survey if you decide to get one and don't forget moving costs.
Speak to an independent mortgage adviser if you want to apply.
The 100% mortgage for students
Loughborough Building Society offers a Buy for Uni mortgage that lets students over 18 buy their first home with the help of a parent, step-parent or grandparent.
The mortgage can be up to 100% of the property's purchase price and the monthly repayments must be covered by renting out the spare rooms to students.
If you want to borrow more than 80% your relative must deposit cash savings with the society that make up the remaining 20% of the purchase price.
They also have the option of allowing Loughborough BS to put a second mortgage charge on their home equal to that amount – or doing a combination of the two.
Speak to your mortgage broker if you want to apply.
The 100% mortgage for families
Several lenders offer a version of this 100% mortgage.
Barclays was the first lender to allow to first-time buyers to borrow 100%, through its Family Springboard mortgage.
This allows borrowers to buy with no deposit on the condition that a family member or loved one puts 10% of the purchase price into a five-year Helpful Start savings account with the bank.
So long as you keep up with the mortgage payments for five years, they'll be able to access and withdraw their cash after that.
Halifax, Lloyds Bank and Mansfield Building Society all offer similar style family mortgages.
Got a small deposit?
A much wider range of building societies, including Newcastle and Yorkshire, allow more than one borrower to be on the mortgage.
This is known as a joint borrower, sole proprietor mortgage and means a parent or loved one can boost your borrowing potential using some of their income.
Newcastle Building Society, Skipton and Saffron all offer this type of mortgage up to 95% loan-to-value.
You'll have to have a 5% deposit in savings and apply through a mortgage broker.
Buy before you save
Property developer Fairview recently launched its Save to Buy scheme.
This allows first-time buyers to save for their final deposit after moving into their new home.
Buyers pay a fixed monthly sum into a savings pot held by Fairview instead of rent.
You only need a 1% deposit to get started and when you've built up enough equity you can apply for a mortgage to buy your home.
The scheme is set to run until December 2023 and is only available on some of Fairview's developments.
To apply you can register on the company's website and you'll be referred to the independent financial adviser they work with on the scheme.
Other help for first-time buyers
First Homes Scheme
The First Homes scheme launched in 2021 and allows first-time buyers in England to buy homes at a 30% and 50% discount to market price.
The discount stays with the property, so is made available to any future buyer too.
To use the scheme you must be a first-time buyer and be aged 18 or older.
Right to Buy
The Right to Buy scheme lets council house tenants buy the property they rent at a discount of up to 70%.
You get a 35% discount on your council home if you've been a public sector tenant for between three to five years.
After five years, the discount increases by 1% for each extra year you've been a public sector tenant.
The maximum it can increase to is 70%, or £87,200 across England and £116,200 in London boroughs.
Right to Acquire
The Right to Acquire is similar to Right to Buy but allows people renting from a housing association or other public sector landlord to buy their home.
It's open to anyone renting in the public sector for three years or longer and offers a discount between £9,000 and £16,000 on the purchase price.
How much you get off will depend on the location of the property.
Shared Ownership
The shared ownership scheme allows first-time buyers to put down a 5% deposit to buy as little as a tenth of a home.
The maximum share you can buy is 75% but as you can afford it, the scheme allows you to buy larger shares in the future.
You must be able to afford a mortgage for 95% of the value of your share in the property plus monthly rent to the local council or housing association.
Deposit Unlock
Newcastle Building Society, Nationwide and Accord Mortgages offer a private scheme called Deposit Unlock.
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You can buy a new-build home from a registered developer with a 5% deposit. You'll have to go through a mortgage broker to access it.
You can find the full list and details of all the first-time buyer help in our guide.
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