How to get on the property ladder

Your first home will probably take a long time to save for. Here are some ways you may be able to get there a little bit sooner.

The cost of buying a home

Property is expensive, but it’s not just the home itself you need to think about. There are also the costs associated with estate agents, solicitors and surveys, as well as the cost of moving and any improvements or maintenance that may need to be carried out.

Thankfully stamp duty is something you may not have to pay – as first-time buyers can buy a first home up to the value of £500,000 without having to pay stamp duty.

Saving for your first home

You’ll likely need a deposit at least 5% of the value of your future home, but it may be worth saving considerably more than that, to pay for the other costs outlined above, and to get a smaller mortgage with a better interest rate.

The rules of saving are simple, but that doesn’t mean they’re easy to follow:

  • Keep a track of your spending
  • Have a budget
  • Set savings targets
  • Monitor things regularly to ensure you are building towards your financial goal

Remember that small savings can add up to something big over the long term.

Ask your family to help

Some people move back in with their parents to save on rent and build a deposit, while others are lucky enough to get financial gifts or loans from family members. In fact, the Bank of Mum and Dad is one of the UK’s biggest mortgage lenders.

Family members can also help you with your mortgage by being a guarantor. It means they are responsible for your mortgage payments if you can’t meet them, so it’s a big commitment.

Get a government bonus, with the Lifetime ISA

The Lifetime ISA is a government savings and investment scheme designed to help people save towards a first home deposit or their retirement.

You can put up to £4,000 per year into a Lifetime ISA and receive a 25% bonus on it if you use it to buy your first home or for your retirement.

Could a Lifetime ISA work for you?

Learn more about our Lifetime ISA and apply today.

Open a Lifetime ISA