Despite house prices rising at a slower pace than in previous years, affordability remains a major challenge for first-time buyers – particularly in London and the South East.
But with lenders offering more high loan-to-income mortgages, there’s a wider choice of schemes to help you onto the ladder
Here, Which? shares seven ways first-time buyers can get on the property ladder in 2025.
1. Buy with as little as £5,000
Scraping together a deposit is often the biggest hurdle – but some lenders are making it smaller.
Yorkshire Building Society offers a scheme that requires buyers to put down a deposit of only £5,000. This is limited to properties valued up to £500,000 and allows first-time buyers up to 99% LTV (loan-to-value).
The scheme isn’t available in Northern Ireland or for new-build properties.
As with any high LTV loan, check you could still afford repayments if interest rates rise.
- Find out more: best mortgage rates 2025
2. Boost your deposit with a Lifetime Isa
If saving feels slow-going, a Lifetime Isa (LISA) can give you a head start.
You can pay in up to £4,000 a year, and the government adds a 25% bonus, which is up to £1,000 each year.
It’s open to those aged between 18 and 39 and can be used to buy a first home worth up to £450,000.
Withdrawals for other purposes incur a penalty, so make sure you intend to use it for a home or retirement.
You need to apply directly to a provider. See our guide on the best lifetime Isas to find out more about how they work and which providers currently offer the best rates.
3. Consider a high loan-to-income mortgage
For buyers whose income is solid but the deposit feels out of reach, some lenders now offer higher loan-to-income (LTI) ratios to stretch borrowing power.
Most lenders typically cap borrowing at around 4 to 4.5 times your annual income. But some schemes go further:
- Nationwide’s Helping Hand: Up to 6x income (with at least 5% deposit) on five and 10-year fixes
- Skipton Building Society First-time Buyer mortgage: Up to 5x income
- Yorkshire Building Society’s Income Lifter: Up to 5.5x income with a 5% deposit.
Larger loans can help in expensive areas, but make sure repayments would still be manageable if rates rise.
- Find out more: mortgage deposit calculator
4. Get a discount with First Homes
For those keen on a new-build, the First Homes scheme offers buyers in England at least 30% off the price.
Local authorities may give priority to key workers or local residents for the first three months of sales.
You’ll need a household income under £80,000 (£90,000 in London), and properties must be worth no more than £250,000 (£450,000 in London).
The discount stays with the property, meaning it will also apply when you sell.
- Find out more: first-time buyer schemes
5. Use rent history to get a mortgage
Lenders such as Skipton now consider rental history when calculating how much buyers can borrow.
Skipton’s Track Record mortgage helps renters onto the ladder by taking rent history into account when assessing affordability.
It’s available with no deposit, or a deposit of up to 5%, on a five-year fixed rate of 5.09% or 5.24%. This is slightly above the average 5-year fixed-rate mortgage of 5.01%.
You’ll need to have paid rent for 12 consecutive months in the past 18 months.
- Find out more: how much can you borrow for a mortgage
6. Cut rates early with Rate Reducer
If monthly payments are your main stumbling block, the Rate Reducer scheme could help. It makes new-builds more affordable by letting developers subsidise your mortgage rate for two to five years.
Analysis from Own New, which runs the scheme, shows that a typical two‑year fixed Rate Reducer deal is at 2.95%, compared with the market average of 5.02%. On a £300,000 home with a 5% deposit, that works out at a saving of more than £300 a month.
However, it’s also important to consider the affordability and competitiveness of the interest rate once the introductory rate ends.
The scheme requires at least a 5% deposit and will only be available with participating developers.
7. Buy part of a home with shared ownership
If buying a whole property feels out of reach, shared ownership lets you buy a slice.
In England, the minimum initial stake you can purchase is 10%, but many schemes require you to buy at least 25%. You’ll need to put down a deposit of at least 5% of the share you’re buying and take out a mortgage to cover the remaining 95% of the share.
Shared ownership schemes are popular with first-time buyers in more expensive areas such as London. However, the combined cost of the mortgage, rent and service charges can be very high.
Shared ownership schemes are available elsewhere in the UK, but rules differ. See the governments’ guidance on shared ownership in Scotland, Wales and Northern Ireland.
What about 0% mortgages?
For buyers without savings for a deposit, 100% loan‑to‑value mortgages enable you to borrow the full purchase price. These products come with higher interest rates and a greater level of risk.
At present, April Mortgages and Gable Mortgages offer 0% deposit deals, both fixed at 6.29% for five years.
On a £300,000 purchase, that’s around £1,986 a month, compared to £1,668 if you put down a 5% deposit at the average 5.01% rate – a difference of more than £19,000 over five years.
Nicholas Mendes, mortgage broker at John Charcol, says these products can work in the right circumstances, particularly for those without family help. He said: ‘Whether you’re borrowing 95% or 100% of the property’s value, the underlying risk isn’t drastically different, especially if your income is stable and the mortgage is affordable.’
What scheme would an expert use today?
Mendes says there’s no shortage of support for first‑time buyers at the moment, but some schemes offer more value than others.
He said: ‘Some of the most valuable but often overlooked options include the Lifetime Isa and the newer products from lenders such as April Mortgages, which offer 100% loan-to-value or enhanced income multiples.
‘If I were a first-time buyer again, I’d make full use of the Lifetime Isa. The 25% government bonus, combined with competitive interest rates, can really accelerate your ability to save. Over a few years, it could boost your deposit significantly, and when buying as a couple you can double the benefit.
‘That said, buyers do need to be aware of the restrictions, such as the £450,000 property cap and penalties for early withdrawal. But, used right, it’s one of the most effective deposit-boosting tools available.
‘From there, I’d look closely at higher income multiple products – particularly useful in higher-cost areas such as the South East.’
Is now a good time to buy?
Rates for first‑time buyers have been steady over the past month, with the lowest deals around 4.8% for a 5% deposit and 4.3% for a 10% deposit.
These could fall further if the Bank of England cuts the base rate again on 7 August.
Zoopla’s latest House Price Index shows more market activity than usual for summer, linked to changes in mortgage affordability checks. Even so, prices remain flat month‑on‑month.
Both Zoopla and Rightmove have trimmed their growth forecasts for the year. Zoopla now expects 1% annual growth, while Rightmove has scaled back its forecast from 4% to 2%.
For buyers weighing their options, it may be more affordable to wait for a few more base rate cuts, as house prices are reasonably flat and it would further drive down the cost of your mortgage.
- Find out more: what’s happening to house prices?