{"id":7605,"date":"2025-04-21T17:23:43","date_gmt":"2025-04-21T21:23:43","guid":{"rendered":"https:\/\/sharewatch.com\/wp\/2025\/04\/21\/mortgages-five-ways-for-first-time-buyers-to-get-on-the-housing-ladder\/"},"modified":"2025-04-21T17:23:43","modified_gmt":"2025-04-21T21:23:43","slug":"mortgages-five-ways-for-first-time-buyers-to-get-on-the-housing-ladder","status":"publish","type":"post","link":"https:\/\/sharewatch.com\/wp\/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":"
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Marc Ashdown<\/span><\/p>\n

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

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Getty Images<\/span><\/p>\n<\/div>\n<\/figure>\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

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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 But beware that the money can only be withdrawn to fund a first-time home purchase up to the value of \u00a3450,000.”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

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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.<\/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

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3. Explore shared ownership<\/h2>\n<\/p>\n
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Getty Images<\/span><\/p>\n<\/div>\n<\/figure>\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

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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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Getty Images<\/span><\/p>\n<\/div>\n<\/figure>\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","protected":false},"excerpt":{"rendered":"

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":1,"featured_media":7606,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ocean_post_layout":"","ocean_both_sidebars_style":"","ocean_both_sidebars_content_width":0,"ocean_both_sidebars_sidebars_width":0,"ocean_sidebar":"","ocean_second_sidebar":"","ocean_disable_margins":"enable","ocean_add_body_class":"","ocean_shortcode_before_top_bar":"","ocean_shortcode_after_top_bar":"","ocean_shortcode_before_header":"","ocean_shortcode_after_header":"","ocean_has_shortcode":"","ocean_shortcode_after_title":"","ocean_shortcode_before_footer_widgets":"","ocean_shortcode_after_footer_widgets":"","ocean_shortcode_before_footer_bottom":"","ocean_shortcode_after_footer_bottom":"","ocean_display_top_bar":"default","ocean_display_header":"default","ocean_header_style":"","ocean_center_header_left_menu":"","ocean_custom_header_template":"","ocean_custom_logo":0,"ocean_custom_retina_logo":0,"ocean_custom_logo_max_width":0,"ocean_custom_logo_tablet_max_width":0,"ocean_custom_logo_mobile_max_width":0,"ocean_custom_logo_max_height":0,"ocean_custom_logo_tablet_max_height":0,"ocean_custom_logo_mobile_max_height":0,"ocean_header_custom_menu":"","ocean_menu_typo_font_family":"","ocean_menu_typo_font_subset":"","ocean_menu_typo_font_size":0,"ocean_menu_typo_font_size_tablet":0,"ocean_menu_typo_font_size_mobile":0,"ocean_menu_typo_font_size_unit":"px","ocean_menu_typo_font_weight":"","ocean_menu_typo_font_weight_tablet":"","ocean_menu_typo_font_weight_mobile":"","ocean_menu_typo_transform":"","ocean_menu_typo_transform_tablet":"","ocean_menu_typo_transform_mobile":"","ocean_menu_typo_line_height":0,"ocean_menu_typo_line_height_tablet":0,"ocean_menu_typo_line_height_mobile":0,"ocean_menu_typo_line_height_unit":"","ocean_menu_typo_spacing":0,"ocean_menu_typo_spacing_tablet":0,"ocean_menu_typo_spacing_mobile":0,"ocean_menu_typo_spacing_unit":"","ocean_menu_link_color":"","ocean_menu_link_color_hover":"","ocean_menu_link_color_active":"","ocean_menu_link_background":"","ocean_menu_link_hover_background":"","ocean_menu_link_active_background":"","ocean_menu_social_links_bg":"","ocean_menu_social_hover_links_bg":"","ocean_menu_social_links_color":"","ocean_menu_social_hover_links_color":"","ocean_disable_title":"default","ocean_disable_heading":"default","ocean_post_title":"","ocean_post_subheading":"","ocean_post_title_style":"","ocean_post_title_background_color":"","ocean_post_title_background":0,"ocean_post_title_bg_image_position":"","ocean_post_title_bg_image_attachment":"","ocean_post_title_bg_image_repeat":"","ocean_post_title_bg_image_size":"","ocean_post_title_height":0,"ocean_post_title_bg_overlay":0.5,"ocean_post_title_bg_overlay_color":"","ocean_disable_breadcrumbs":"default","ocean_breadcrumbs_color":"","ocean_breadcrumbs_separator_color":"","ocean_breadcrumbs_links_color":"","ocean_breadcrumbs_links_hover_color":"","ocean_display_footer_widgets":"default","ocean_display_footer_bottom":"default","ocean_custom_footer_template":"","ocean_post_oembed":"","ocean_post_self_hosted_media":"","ocean_post_video_embed":"","ocean_link_format":"","ocean_link_format_target":"self","ocean_quote_format":"","ocean_quote_format_link":"post","ocean_gallery_link_images":"on","ocean_gallery_id":[],"footnotes":""},"categories":[19,21,20],"tags":[],"class_list":["post-7605","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-market","category-news","entry","has-media"],"_links":{"self":[{"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/posts\/7605","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/comments?post=7605"}],"version-history":[{"count":0,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/posts\/7605\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/media\/7606"}],"wp:attachment":[{"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/media?parent=7605"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/categories?post=7605"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/tags?post=7605"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}