Have you ever heard about the help to buy scheme? It is a government backed project that helps people buy a home. It divides in two categories, the equity loan and the mortgage guarantee. The folks at Barratt Homes have put together a nice infographic to help you understand everything better.
Basically, you can get on the property ladder with just 5% down.
The equity loan works on new builds and comes in the form of a 20% government loan, so you put your 5% and apply for a 75% LTV mortgage. You can repay at any time, or when you sell, and unlike shared ownership, you own the whole property.
The mortgage guarantee works on any property, new and old, you put 5% down and apply for a 95% LTV mortgage, while the government guarantees up to 15% of the property value to your lender. You do not have to be a first time buyer to qualify.
Found out more details with the infographic below:
