Gurkha Nepali Mortgage

Saving a deposit can take years, but there are schemes and mortgages that can help. Here are three ways to get on the property ladder with a smaller deposit.

Shared ownership
Shared Ownership schemes allow you to buy a percentage of a property, typically 25% to 75%, from your local authority or a housing developer. Then each month you’ll pay rent on the remaining percentage. This could be an option for someone who has a smaller deposit but who is capable of paying their rent and monthly mortgage commitments.

Help to buy equity loan
This loan is available for first time buyers and existing home owners who wish to buy a new build home up to £600,000. You can borrow 20% of the purchase price (interest-free for five years) provided you have a 5% deposit. If you’re buying a new build home in London, you can borrow up to 40% of the purchase price. After 5 years, you will start paying the loan back and it will need to be paid back in full when you sell the property or at the end of your mortgage term (whichever comes first), along with a percentage of the property value growth.

Right to buy
If you’ve lived in a council home for more than three years, you may be able to buy it at a discounted price. This discount could be as much as 70% (depending on how long you’ve lived there). When applying for a mortgage, some lenders may even use this discount as a deposit – giving you a lower loan to value and therefore offering even better deals.