Before you start looking at properties you’ll need to start saving for a deposit. Generally, you need to try to save at least 5% to 20% of the cost of the home you’d like. So if you want to buy a home costing £150,000, you’ll need to save at least £7,500. Saving more than 5% will make it easier for you to apply for a wider range of mortgages.
Be realistic about how much you can afford. Regular saving is more effective than relying on irregular one-off sums. How long it will take depends on how much you can afford to set aside each month.
Help to Buy
Do you have at least a 5% deposit? The government’s Help to Buy scheme makes it possible to buy a new or existing home even if you’ve only got a small deposit. Find more information out here: https://www.helptobuy.gov.uk/
Help to Buy ISAs
The new Help to Buy ISA scheme is designed to help first-time buyers save up for a deposit for their home. Launching in December 2015, this scheme will see the government top up your savings by 25%. That means that for every £200 you save the government will give you £50.
The most the government will contribute is £3,000, so the most you can save in a Help to Buy ISA is £12,000. The minimum you need to save to qualify is £1,600, which would give you a £400 bonus.
Help to Buy ISAs are available to each first-time buyer, not each house. So if you’re buying a property with someone else, you can get up to £6,000 towards your deposit.