

Examples shown are based on Help to Buy in England (outside of London) & Wales
There are a range of Government schemes now available that provide an alternative for getting a foot on the property ladder without the reliance of the Bank of Mum and Dad.
Help to Buy ISA
While thousands of first-time buyers say they would never get on the housing ladder without some serious help from their parents, many people may be missing out on another source of ‘free money’ that can help turn housing dreams into reality. The easily overlooked extra cash comes courtesy of the Government’s Help to Buy ISA scheme and can offer a helping hand for those looking to get on the property ladder for the first time.
Here the Government will boost your savings by 25% – so, for every £200 you save, you’ll receive a tax-free government bonus of £50 – with a maximum government bonus of £3,000.
What’s more, these accounts are available to each first time buyer, not each household. This means that if you are planning to buy with your partner, for example, you could double your money and receive a Government bonus of up to £6,000 towards your first home.
Help to Buy Equity Loan
Through Help to Buy you can apply for a Government-backed equity loan. You will only need to raise a 5% deposit, with the Government providing a 20% equity loan (15% in Scotland, 40% in London). This leaves you only needing a mortgage for the 75% difference (80% in Scotland, 55% in London). The equity loan is interest-free for five years and after that interest is 1.75% – cheaper than most mortgages.
Or, if you have a sum of money saved, then thanks to mortgage guarantee schemes agreed between the Government and the banks, there are now more 95% mortgages available.
This guide to money was produced in collaboration with L&C Mortgages, the UK’s largest fee free mortgage broker and adviser.
[1] Source: Legal & General