Buying your first home can feel like a big financial step - especially when it comes to saving for a deposit.
If you’re relying on a bit of support, you’re far from alone. Around 40% of first-time buyers receive some form of financial help*, showing just how common it is to have a helping hand along the way.
The type of support available will depend on your personal circumstances, eligibility and what’s available at the time - but the good news is there isn’t just one way to get there.
How do people get help with a deposit?
For many buyers, support comes from family - most often in the form of a gifted deposit. This is typically a lump sum given with no expectation of repayment, helping to bridge the gap between what you’ve saved and what you need to buy.
That’s just one route.
Some buyers receive more gradual support, such as help building up savings or covering living costs while they save. Others combine income with a partner to increase what they’re able to put down.
There are also more structured ways that support can work alongside a mortgage. In some cases, arrangements such as guarantor-style mortgages or family-supported options may be available, depending on the lender and individual circumstances.
Government schemes and incentives
Alongside family support, there are a range of schemes and incentives that may help buyers with smaller deposits or affordability challenges, depending on eligibility and availability.
One example is the Mortgage Guarantee Scheme, which supports the availability of mortgages with as little as a 5% deposit by helping lenders manage risk. This means more options may be available for buyers who are able to meet the necessary criteria.**
There are also schemes linked to new-build properties, such as Shared Ownership - where you buy a share of a home and pay rent on the rest - and the First Homes scheme, which offers discounted homes to eligible first-time buyers in certain areas.
Some developers also offer initiatives such as the Own New scheme, where a contribution is made towards the mortgage to help reduce interest rates during the initial fixed period. These types of schemes are typically specific to certain developments and may not be widely available, but can offer additional support in the right circumstances.
For those still saving, tools like the Lifetime ISA can help boost a deposit, with the government adding a 25% bonus to savings, subject to limits and eligibility.
Even stamp duty relief can play a role. First-time buyers may pay no stamp duty on the first £300,000 of a property purchase (up to £500,000), which can reduce upfront costs depending on the purchase price.
What about guarantors and family-supported options?
In some situations, a family member may not need to give money at all - but instead support your mortgage directly.
While people often refer to guarantor mortgages, these more commonly exist today in the form of joint borrower sole proprietor (JBSP) arrangements. This is where a family member supports the mortgage by being named on it, helping to boost affordability - while the property itself remains in the buyer’s name.
These types of arrangements can increase how much you’re able to borrow, but it’s important to understand that the supporting party may be equally responsible for the mortgage. As with any form of financial support, the exact structure and responsibilities will depend on the lender and the individual circumstances.
What should you be aware of?
While financial help can make buying your first home much more achievable, it’s important to set things up correctly from the start.
Lenders will want a clear understanding of where your deposit is coming from, and you’ll usually need to provide supporting documentation - particularly if funds are being gifted or supported in any way.
Transparency is key. Even informal arrangements between family members can affect your application if they’re not properly declared or structured in line with lender requirements.
Getting the right guidance
With so many options available - and different lenders taking different approaches - getting advice early can make a big difference.
A mortgage adviser can help you understand what’s possible based on your circumstances, explain how different types of financial support are treated, and make sure everything is set up in the right way from the outset.
A helping hand can go a long way
If you’re getting support to buy your first home, you’re in good company.
With the right preparation - and the right guidance - a helping hand can be the thing that gets you onto the property ladder sooner than you expected.
If you’re starting to think about your first home and would like a clearer idea of what you may be able to borrow, book a free appointment with us or call 08000 38 37 36.
We can talk through your situation and help you understand your potential borrowing range. There’s no obligation - just a chance to get clarity and feel more confident as you begin your homebuying journey.
This is for information only. Products and rates vary depending on your circumstances, lender criteria and products available at the time.
There may be tax implications when arranging this type of transaction, this depends on your personal circumstances and may change. We recommend that you take independent tax advice before making these decisions.
*Nationwide
** Moneyfacts
