With property prices on the slide again, now could be a good chance for first-time buyers to step onto the property ladder. Given low interest rates, it is also cheaper in many cases to buy rather than rent a comparable property.
A third of properties currently for sale have had their prices discounted by an average 6.1 per cent, according to property search website Zoopla.co.uk, and current price levels are expected to fall a little further this year. So, the discounts are out there and there are deals to be done. There is currently no stamp duty for first-time buyers to pay on properties costing less than £250,000. And as someone just stepping on the property ladder, you have one great advantage: you have nothing to sell, which makes you a very attractive proposition to vendors.
So what is stopping first time buyers - The deposit. The average first-time buyer needs to find a 25 per cent deposit, according to the Council of Mortgage Lenders. But saying that there are a number of 90% mortgages available meaning you only need to provide a 10% deposit, but that still could pose a problem to a number of people. For many would-be buyers, that means turning to the bank of mum and dad. Your parents might also agree to act as guarantors, which means they agree to pay your mortgage if you default on the payment. This will enable you to get a bigger mortgage than you would have managed on your own, but you should take legal advice before signing up for this option.
But if parental support is not an option, there is not many more options to you except looking at government schemes or builder schemes which we will talk about in later blogs. If you prefer new-build, you could look at the incentives some developers are offering first-time buyers. Some developers allow buyers to pay a five percent deposit on some of their schemes by lending a further 15 per cent as an equity share loan that is interest-free.
There is a greater choice of mortgage deals available to first-time buyers with a 10 per cent deposit than there was a year ago, but the best rates are still available to those with 25 per cent to put down. If you have just 10 per cent, you will pay a premium of around two percentage points on the rate and will face a tougher credit scoring.
When calculating how much you can afford to spend each month on a mortgage, it is important to factor in what happens if interest rates rise by 1 per cent, 3 per cent or even 5 per cent. Would you still be able to cover your mortgage repayments each month? Your budget should also cover a solicitor's, surveyor's and possible lender's or financial advisor's fees. All of these will be covered in later blogs. Though using an adviser from Richards and Jones will not cost you anything at all!

Think too, about the financial implications of buying an old or a new property. An older house offers the potential to renovate and add value – but that work could mean a sizeable outlay at the start. Homebuyers spend an average £7,700 on their home in the first year after purchase, but nearly a quarter of them do not budget for these expenses.