First time buyers are currently in a strong position as interest rates are currently low and first-time buyers are quite attractive to sellers as they are not in a chain and there would be no delays. However, a 20% deposit is the required amount for most lenders.
Help to Buy Scheme
In April 2013 when house prices began to rise again after the credit crunch the government introduced the Help to Buy Scheme which applies to first time buyers and existing homeowners and only applies to the purchase of new build properties.
The scheme is being offered in England until 2020. Under this scheme the government will provide a loan of 20% of the property value with the borrower providing a deposit of 5%. The remainder would be a mortgage of 75% from the lender.
For more information on Help to Buy Scheme, please contact us.