Nearly half of first-time buyers used a government scheme to help them get onto the property ladder, a survey by Uswitch has revealed.
The most popular form of assistance was the First Homes Scheme, which has helped 36% of the buyers surveyed make the first step into homeownership in the last two years.
Meanwhile, the Lifetime ISA proved to be the next most common form of assistance, with 29% of would-be buyers using the government savings scheme to help them with their first property purchase.
The First Homes Scheme enables first-time buyers who are already local to the area in which they are purchasing to buy a home at a discount of at least 30% and up to 50%.
Also open to key workers, the scheme is for people with a household income of up to £80K (£90k in London) on properties worth up to £250k (£420k in London).
The Lifetime ISA, meanwhile, is a savings account which allows those aged between 18 and 39 to put away up to £4k a year and receive tax-free interest plus a 25% government bonus.
Kellie Steed, mortgage expert at Uswitch, said: “When people think about first-time buyer schemes, their mind often jumps to Help to Buy.
“But the Help to Buy equity loan scheme is no longer available in England, Northern Ireland or Scotland, although those in Wales who are eligible can still apply.”
Help from family members and partners
Although government schemes were a popular way into homeownership, as many as 34% of the 2,001 quizzed by Uswitch had help from their parents.
In fact, 24% received a loan from their parents for the deposit whilst 10% of buyers received the money as a gift.
The survey also revealed that almost half (48%) of first-time buyers are the sole property owners, while 33% bought with a partner.
Factoring in additional costs
It also emerged in the survey that a number of first-time buyers had failed to factor in additional costs.
Only 7%, according to Uswitch, were aware of the mortgage admin fee prior to securing their mortgage.
Less than half (45%) were aware of survey costs, 40% had considered conveyancing costs and 79% did not know there may be stamp duty to pay.
There is currently relief on first-time buyer stamp duty in England and Northern Ireland – if you’re buying a property up to £425,000, you don’t have to pay the tax.
