Saving for a deposit can be a real barrier for would-be buyers, which is frustrating if they know they are paying more in rent than they would on a mortgage.
The good news is that mortgage rates are currently very competitive and there is plenty of choice available.
It’s virtually impossible to find a 100% mortgage. However, lenders are increasingly willing to provide mortgages for borrowers with a 10% deposit. Of course, the larger the deposit you have, the lower the mortgage rate you’re likely to be offered.
Fortunately for aspiring homeowners with smaller deposits, there is help available. Buyers of newly built homes can use the government backed Help To Buy Equity Loan scheme to get onto the property ladder with just a 5% deposit. The popular scheme is available until 2021 and means that buyers can receive an equity loan from the government for up to 20% of the property’s value (15% in Scotland and 40% in London). They will then only require a 75% mortgage (80% in Scotland, 55% in London).
Help To Buy Equity Loans have helped almost 92,000 people buy a property and 81% of those were first-time buyers.
If you’re still saving for a deposit, you could make use of a Help To Buy ISA where the government will top up your savings by up to £3,000.
 source – gov.uk