Ditching ‘Generation Rent’ – Our tips for getting your foot on the property ladder in 2023

Ditching ‘Generation Rent’ – Our tips for getting your foot on the property ladder in 2023

The recent hike in inflation and increased mortgage rates has made saving up for a deposit a challenge this year, especially for potential first-time buyers hoping to get their foot on the first rung of the property ladder.

However, with private rental costs increasing at the highest level since comparable records began seven years ago, the need to leave ‘generation rent’ behind and move into a home to call your own has arguably never been greater.

To get you one step closer to owning a home of your own, we’ve gathered together our top five tips on the key things you should think about before you buy.

1. Calculate your deposit size

Although most mortgage deposits are around 5-10% of a property’s value, there are some products on the market which come under that amount. However, spending more time saving for a bigger deposit means you’ll be offered a mortgage with a lower interest rate.

With the rising of interest rates at the end of last year still in place, there could be real benefits in saving just that little longer, in the hope that they’ll come down.

You can use a deposit calculator to find out how long it might take you to save enough to buy your first home.

2. Consider extra costs 

It’s important to remember to budget for the additional costs of buying a property, such as conveyancing fees, van hire and surveys.

In addition, first-time buyers purchasing a property costing more than £425,000 will be required to pay stamp duty.

3. Apply for a lifetime ISA

You can top up your savings by applying for a lifetime Isa, a tax-free savings or investments account designed to help those aged 18-39 to buy their first home.

If you’re under 40, you can earn up to £1,000 in each tax year from the Government for every £4,000 you save.

4. Find out how much you can borrow

Once you have an idea of your deposit and budget, it’s a good idea to find out how much you’ll be able to borrow.

As well as your income, potential lenders will also look at the size of your planned deposit, your credit score and monthly outgoings.

You can use a mortgage borrowing calculator to get an idea of your borrowing power.

It is also a good idea to test out different comparison site, as they all offer varying insight and advice, we would recommend looking into this site as a starter for ten.

5. Look into first-time buyer schemes and other mortgage options

There are alternative options out there to help buyers get on the ladder which don’t require years of saving. You should investigate the Government’s Own Your Home portal to find which scheme is right for you.

For example, Shared Ownership and Rent to Buy are home ownership schemes which have become increasingly popular in recent years.

Shared Ownership allows you to buy a percentage of a property, paying a mortgage on the share you own and rent to a housing association on the remainder. 

Whilst Rent to Buy is a scheme which allows customers to rent a home at 80% of the market rent, providing aspiring homeowners with the opportunity to save towards a deposit and after five years, buy their home.

At Glenvale Park, housing developer Stonewater plans to deliver a total of 148 affordable homes on site, comprising a mix of flats and houses for Shared Ownership and Rent to Buy.

To find out more about Stonewater and other homebuilders at Glenvale Park, please click here.

Back to news