{"id":286507,"date":"2025-04-21T03:46:10","date_gmt":"2025-04-21T03:46:10","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2025\/04\/21\/mortgages-five-ways-for-first-time-buyers-to-get-on-the-housing-ladder\/"},"modified":"2025-04-21T03:46:10","modified_gmt":"2025-04-21T03:46:10","slug":"mortgages-five-ways-for-first-time-buyers-to-get-on-the-housing-ladder","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2025\/04\/21\/mortgages-five-ways-for-first-time-buyers-to-get-on-the-housing-ladder\/","title":{"rendered":"Mortgages: Five ways for first-time buyers to get on the housing ladder"},"content":{"rendered":"
\"Mortgages:<\/div>


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Marc Ashdown<\/span><\/p>\n

Business correspondent, BBC News<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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Mortgage rates are expected to come down over the next year, which could make owning a home a possibility for millions more people.<\/p>\n

Thinking about where to start can be a daunting prospect, but there are an increasing number of ways to save up for a deposit, and get a foothold in the housing market. <\/p>\n

We spoke to some leading mortgage experts to get their tips for anyone starting out on the journey to owning their own home.<\/p>\n<\/div>\n

1. Start saving as soon as you can<\/h2>\n<\/p>\n
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The average deposit paid for a first-time buyer is \u00a334,500, according to UK Finance. So the sooner you start saving, the better.<\/p>\n

A Lifetime ISA (individual savings account) offers 25% bonuses for those who are saving for a first home. For each \u00a34,000 saved in any given tax year, the government will top it up with an extra \u00a31,000.<\/p>\n

Digital mortgage broker Tembo specialises in helping first-time buyers, and has seen a rise in savers starting young.<\/p>\n

“If you maxed out your savings allowance from the age of 18 to 30, you could pick up \u00a322,000 in free bonuses,” says Tembo chief executive Richard Dana.<\/p>\n

“Family members can contribute too. But beware that the money can only be withdrawn to fund a first-time home purchase up to the value of \u00a3450,000.”<\/p>\n<\/div>\n

2. Look at low-deposit mortgage options<\/h2>\n<\/p>\n
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Those struggling to raise a deposit have now got a broad range of 95% loan-to-value (LTV) deals available, says David Hollingworth from mortgage brokers London & Country.<\/p>\n

In fact, more low-deposit mortgages are available to choose from than at any time since the financial crisis of 2008, according to new figures<\/a>.<\/p>\n

“Yorkshire Building Society offers a \u00a35,000 deposit mortgage which does what it says on the tin and could offer a mortgage equivalent to as much as 99% of the purchase price,” says Mr Hollingsworth.<\/p>\n

“Skipton’s Track Record mortgage can offer as much as 100% lending for those that can demonstrate a track record of paying rent that exceeds the mortgage payment.”<\/p>\n

However, small deposit mortgages typically offer higher rates, and may not be suitable for many self-employed homebuyers who may struggle to meet the strict eligibility criteria.<\/p>\n<\/div>\n

3. Explore shared ownership<\/h2>\n<\/p>\n
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Shared ownership has been available in England since the 1980s and enables a first-time buyer to own a “share” in their home of between 25% and 75% of the value. There are similar schemes available in Scotland, Wales and Northern Ireland.<\/p>\n

You need a small deposit and can take out a mortgage to buy your share and then pay rent to the landlord for the rest.<\/p>\n

Over time you can increase the amount of the property you own and reduce rental payments. It’s known as “staircasing” and the aim is to eventually own your home outright.<\/p>\n

“Although shared ownership is usually seen as an option for younger, first-time buyers, that is not always the case,” says Laura Gaskell, sales manager at shared ownership specialists Snugg Homes.<\/p>\n

“The average age of a buyer with us is now 48 and we have people who have been homeowners previously. Our advice is to register your interest and regularly check the eligibility criteria.”<\/p>\n<\/div>\n

4. Consider an ‘income boost’ mortgage<\/h2>\n<\/p>\n
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The “Bank of Mum and Dad” might not be an option for some, but there are ways to get help from family members without borrowing any money at all.<\/p>\n

An “income boost” mortgage (otherwise known as a Joint Borrower Sole Proprietor mortgage) allows a homebuyer to add up to three family members (or in some cases friends) to their mortgage to increase the amount they can borrow from a lender.<\/p>\n

While the “boosters” are on the mortgage, they are not owners of the home and therefore the buyer’s first-time buyer status is not affected.<\/p>\n

“This is increasingly popular amongst younger first-time buyers who are earlier in their careers and are earning less,” says Richard Dana from Tembo.<\/p>\n

“It’s the primary option for families who want to support their children, but might not have the cash available to gift as a deposit, or want to keep hold of cash savings for their retirement or a rainy day.”<\/p>\n

As buyers will be borrowing more than they would qualify for on their own, they should make sure they can afford the repayments. <\/p>\n

The risk for the “boosters” is that they are jointly liable for the mortgage in the event the buyer is unable to make repayments.<\/p>\n<\/div>\n

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5. ‘Professional’ mortgages are available<\/h2>\n<\/p>\n
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Many lenders offer “professional” mortgages which could enable a buyer working in a regulated or accredited profession – such as doctors, architects and accountants – to borrow up to six times their income.<\/p>\n

Specialist lenders also offer deals to particular professions. <\/p>\n

For instance, Teachers Building Society works with those in the teaching profession, while Kensington offers a better earnings calculation to NHS staff, police officers, firefighters and teachers.<\/p>\n

“Given that these career profiles are often more secure, Kensington felt it could be more generous in its approach as long as the mortgage will be affordable,” says David Hollingworth.<\/p>\n

“It can also take account of overtime and income from a second job to help improve the borrowing amount.”<\/p>\n

But he adds: “It’s always still important to shop around. Rates on these mortgages can be a little higher, so taking advice on the best overall fit is important.”<\/p>\n<\/div>\n<\/div>\n


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Marc Ashdown Business correspondent, BBC News Getty Images Mortgage rates are expected to come down over the next year, which could make owning a home a possibility for millions more people. Thinking about where to start can be a daunting prospect, but there are an increasing number of ways to save up for a deposit, […]<\/p>\n","protected":false},"author":2,"featured_media":286508,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","fifu_image_url":"https:\/\/static.files.bbci.co.uk\/bbcdotcom\/web\/20250409-091508-0ef9b7676-web-2.19.1-12\/grey-placeholder.png","fifu_image_alt":"","footnotes":""},"categories":[604],"tags":[20629,36111,7560,69824,53481,4355],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/286507"}],"collection":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/comments?post=286507"}],"version-history":[{"count":1,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/286507\/revisions"}],"predecessor-version":[{"id":286509,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/286507\/revisions\/286509"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media\/286508"}],"wp:attachment":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media?parent=286507"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/categories?post=286507"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/tags?post=286507"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}