There’s no feeling quite like receiving the keys to your first home, but reaching that milestone has become increasingly difficult. The average UK home now costs £269,000, with prices often even higher in major cities. Rising living costs make saving for a deposit more challenging, particularly for those who rent. Many tenants are spending most of their monthly income on rent and essential bills, leaving little room to put money aside.
Renters have felt the squeeze in particular. Over the past three years, the average annual cost of renting has jumped by 21%, according to property site Zoopla. Utility and local tax bills have added to the pressure, with water bills increasing by £123 per year and council tax climbing nearly 5% in most English local authorities this April. With household budgets stretched thin, it is hardly surprising that many buyers turn to family for financial help.
Government housing surveys show that nearly one-third of first-time buyers relied on family or friends for financial support in 2023/24, while a further 9% used inheritance money to secure their deposit. For those without such assistance, choosing the right mortgage product can make all the difference. Lenders have begun to design products tailored to first-time buyers, including those who may have relatives willing to help in ways other than gifting money.
One option is the Lloyds Lend a Hand Mortgage, which allows a family member to place 10% of the property price into a fixed-term savings account for three years as security. If the buyer keeps up with repayments, the family member gets their money back with interest, while the buyer benefits from a stable, fixed interest rate and full ownership rights. There are conditions, such as needing to be a first-time buyer in England or Wales and not purchasing a new-build property, but the product offers flexibility for families wanting to help without permanently parting with their savings.
Another product designed for first-time buyers is the Lloyds First-Time Buyer Boost Mortgage, which may allow applicants to borrow up to 22% more than usual. This option requires at least a 10% deposit and a household income of £50,000 or more. At least one applicant must never have owned a property, and all applicants must be employed rather than self-employed. With the average mortgage rate currently standing at 5.05%, according to Moneyfacts, carefully reviewing fees and terms is essential before committing.
Beyond family support and mortgage products, government initiatives can also play a key role in helping buyers onto the property ladder. Lifetime ISAs remain one of the most popular savings tools, allowing up to £4,000 in contributions each year with a 25% government bonus—up to £1,000 annually. These funds can be withdrawn to purchase a first home worth up to £450,000 or saved for retirement. Other government-backed schemes, such as Right to Buy, shared ownership, and Forces Help to Buy, provide additional avenues of support. Buyers who opened a Help to Buy ISA before the program closed can still use it toward their purchase.
Before starting the search for a home, buyers are encouraged to use online mortgage calculators to estimate how much they could borrow and what their monthly repayments might look like. Lloyds offers an agreement in principle process that takes only 15 minutes and has no impact on credit scores, which can be a useful step when approaching estate agents. While it is not a guarantee of lending, it shows sellers that a buyer is serious and financially prepared.
Climbing onto the property ladder may feel more daunting than ever, but with the right mix of planning, support, and awareness of available products and government schemes, first-time buyers can still find a path to ownership. Careful preparation not only makes the process smoother but also increases the chances of securing that dream home in a competitive market.