Could you get any cash off deposit?
The Government has tried to kick-start the housing market by introducing schemes which give you cash off your deposit if you buy a new home.
There are two main kinds – FirstBuy and NewBuy.
FirstBuy works through a joint loan of 20 per cent from the Homes and Communities Agency and the developer.
This loan is repayable at the end of the 25-year mortgage term or when the property is sold.
You will need to have some savings if you want to buy through the FirstBuy scheme, but because the scheme pays the agreed percentage of the purchase price of the property then you'll need less than you would ordinary to cover a straightforward deposit of, say, 10 per cent.
The NewBuy scheme was launched by the Government in March to help people get on to or climb up the housing ladder by buying a newly-built home.
Housing developers and the Government are underwriting mortgages with a number of lenders to allow them to provide mortgages to people with a deposit as small as 5 per cent of the value of the property they want to buy.
Builders are contributing 3.5 per cent of the purchase price and the government is providing 5.5 per cent. This should reduce the risk of lending to people with small deposits.
You don't have to be a first-time buyer to participate in the NewBuy scheme, but you have use the home you buy as your main residence – so you cannot pay for a buy-to-let property.