WORTH THE WAIT

HELP AT HAND

There are a number of schemes designed to get first-time buyers on the property ladder.

The Help to Buy Isa allows first-time buyers to save up to £200 per month after an initial deposit of a maximum £1,200. Interest rates depend on providers but interest is tax-free. Once savers have reached a minimum £1,600 balance and are ready to buy, the Government will add 25pc of the saved sum – also tax-free.

The Lifetime Isa allows a maximum £4,000 to be saved per year. It also gives a 25pc boost when the proceeds are used for first-time house purchase.

Help to Buy equity loans offer buyers extra borrowing of up to 20pc of a newly built house’s price. The loan is interest free for five years, and then borrowers have to pay 1.75pc interest. This rises every year thereafter, based on the increase in the Retail Prices Index plus 1pc. The loan is repayable after 25 years or when the home is sold. Owners also forfeit the 20pc of the property funded by the loan at market value when it’s sold.

Shared ownership is another option. Households earning less than £80,000 (£90,000 in London) can purchase between 25pc and 75pc of a home, and pay rent on the rest to the housing association that operates the scheme. You then have the option of buying more of your home in the future.