Getting your deposit together
It’s essential you know what you may be able to borrow before looking for your first home, so you’ll need to call us for an affordability check first.
If you’re saving for a deposit, then it’s worth considering the following options.
Online Cash Lifetime ISA
This is a savings account which can be opened by people between the age of 18 and 39 to save up to £4,000 tax-free each year. The government will pay a 25% bonus on your contributions, up to a maximum of £1,000 a year and it can be used to help you save for your first home.
Your Lifetime ISA allowance forms part of your overall £20,000 annual ISA allowance. If you withdraw before you reach 60 for any reason other than purchasing your first home, a government charge will apply and you will get back less than you put in. Find out more.
Help to Buy and Shared Ownership
Help to Buy Equity Loans is a government scheme designed for new-build properties to help you to own your first home or to move up the property ladder.
The government lends you up to 20% in England and Wales, 15% in Scotland and 40% in London towards the cost of your home, so you'll only need a 5% cash deposit (or 10% if you're buying in Scotland). They are only available if you meet the eligibility criteria and you're buying a new-build home. You can find out more about the government Help to Buy equity loan scheme at the government website.
Shared Ownership allows you to buy a share of the home and pay rent for the rest. This means you take a smaller mortgage, so the deposit required is lower. However, you need to make sure you budget for your monthly mortgage payments plus the rent.