WANNABE first-time buyers often think it's impossible to get on the property ladder due to the thousands of pounds needed to stump up for a deposit.
The average first-time buyer deposit was a whopping £44,635 in 2017/18, according to the Government's latest English Housing Survey.
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And even just a 5 per cent deposit with a 95 per cent mortgage can feel unachievable.
What is a 100 per cent mortgage?
But there are ways to buy a home without an upfront cash deposit - and one of these is with a type of 100 per cent mortgage known as a guarantor mortgage.
According to data from financial comparison site Moneyfacts, there are just under 30 different guarantor mortgages for first-time buyers - and they all work slightly differently.
Barclays' Springboard mortgage and Lloyds Bank's Lend a Hand mortgage, for example, requires parents to put down a 10 per cent deposit in a savings account.
While Aldermore's Family Guarantee Mortgage needs parents to guarantee 25 per cent of the property's value using their own home.
The Post Office's Family Link Mortgage works in a similar way, requiring a family member who is mortgage free to stake 10 per cent of their property's value against the mortgage.
A host of building societies from Bath to Buckinghamshire to Marsden and more also offer varying 100 per cent mortgages.
What help is out there for first-time buyers?
GETTING on the property ladder can feel like a grim task but there are schemes out there to help first-time buyers own their own home.
- Help to Buy Isa - It's a tax-free savings account where for every £200 you save, the Government will add an extra £50. But there's a maximum limit of £3,000 which is paid to your solicitor when you move.
- Help to Buy equity loan - The Government will lend you up to 20 per cent of the home's value - or 40 per cent in London - after you've put down a five per cent deposit. The loan is on top of a normal mortgage but it can only be used to buy a new build property.
- Lifetime Isa - Another Government scheme that gives anyone aged 18 and 39 the chance to save tax-free and get a bonus of up to £32,000 towards your first home. You can save up to £4,000 a year and the Government will add 25 per cent on top.
- Shared ownership - Co-owning with a housing association means you can buy a part of the property and pay rent on the remaining amount. You can buy anything from 25 to 75 per cent of the property but you're restricted to specific ones.
- "First dibs" in London - London Mayor Sadiq Khan is working on a scheme that will restrict sales of all new-build homes in the capital up to £350,000 to UK buyers for three months before any overseas marketing can take place.
- Starter Home Initiative - A Government scheme that will see 200,000 new-build homes in England to be sold to first-time buyers with a 20 per cent discount by 2020. To receive updates on the progress of these homes you can register your interest here.
Use a free whole of market mortgage broker to check what deal is best for you.
Of course, be aware that with most of these mortgages, whoever is guaranteeing your loan will likely be liable for your repayments if you miss them.
You also may end up in negative equity - where your home is worth less than your mortgage - if prices fall.
Rachel Springall, financial expert at Moneyfacts said:“The mortgage market has clearly evolved over the years to accommodate first-time buyers, as there are now a greater choice of deals.
“But borrowers must be sure that any property they are looking to buy is a place that they can be comfortable living in for a few years.
"If house prices fall, borrowers could fall into negative equity which will cause problems for when they wish to move on – that is one of issues taking out a 100 per cent mortgage deal.”
What properties can I buy with a 100 per cent mortgage?
So what kind of property could you buy with this type of loan? Typically you can borrow around 4.5 times your salary.
So take the median UK salary of £29,588 a year, according to the Office for National Statistics, and that means you could snap up a property worth up to £133,146.
If your lender will only go up to 4 times your salary, then that means you could buy a home worth £118,352.
To give you some examples, we've pulled out six properties currently up for sale on property portal Zoopla costing £120,000 or less around the UK.
Of course, you're going to get more for your money if you buy outside of London and the south east of England.
How do you find the best mortgage deals?
IF you have or haven't got a deposit lined-up to buy a home, shopping around for a mortgage is the same.
Websites such as Moneysupermarket and Moneyfacts have mortgage sections so you can compare costs and all the banks and building societies have their offers available on their sites too.
If you're getting confused by all the deals on the market, it might be worth you speaking to a whole of market mortgage broker, who will help find the best mortgage for you.
A broker will typically cost between £300 and £400 but could help you save thousands over the course of your mortgage. You can also use free brokers, such as London & Country and Trussle.
You'll also have to decide on if you want a fixed-deal where the interest you're charged is the same for the length of the deal or a variable mortgage, where the amount you pay can change depending on the Bank of England Base Rate.
Remember, that you'll have to pass the lender's strict eligibility criteria too, which will include affordability checks, and looking at your credit file.
You may also need to provide documents such as utility bills, proof of benefits, your last three month's payslips, passports and bank statement.
And while you might be tempted to get a mortgage without a deposit, they tend to be more expensive than other deals, so you could be better off saving up instead.
You can check out our guide to the best first-time buyer mortgage deals here.
Three-bed semi-detached house, Bolton
You can snap up this spacious three-bed semi-detached home on the outskirts of Bolton for just £115,000.
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The house has a modern finish and is also near to Manchester for those looking to commute into the city.
But be aware that it is being sold as a leasehold property, which means you technically don't own the land the house is built on.
Leasehold also means you're likely to have to pay an annual ground rent to the freeholder - the person or company who owns the land - as well as an annual service charge to cover any repairs or maintenance.
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Be sure to check these before buying as they can spiral into thousands of pounds.
Two-bedroom semi-detached house, Bradford
This two-bed semi detached house in Bradford has a drive with space for two cars, as well as as small garden at the rear.
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With two decent-sized bedrooms and one bathroom the property is on the market for £106,995.
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It's available on a freehold basis meaning you own the home and the ground it stands on.
Three-bedroom semi-detached house, Kenfig Hill
First-time buyers can snap up a property by the beach with this home in Kenfig Hill, which is under a 15-minute drive to the Welsh seaside town of Porthcawl.
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The spacious property has three bedrooms, two bathrooms, a single garage and a garden.
But it has only been partially refurbished so you do need to have the time and money on your hands to carry out the rest of the work.
The property's listing says it still requires a kitchen and bathroom to be fitted, the internal walls need plastering, and it needs to be connected to the mains gas supply.
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You are buying the freehold with this property.
Three-bed semi-detached house, North Lanarkshire
First-time buyers could nab this three-bed house in Wishaw, North Lanarkshire on the outskirts of Glasgow for £104,995.
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It was built by Barratt Homes in just 2004.
But carpets are missing and many of the walls are bare so you will need to be willing to pick up a paint brush and splash out a bit on decorating.
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You'll also need to like decking - or be willing to pull it up - as the back garden is completely decked over.
It's unclear if the property is available on a leasehold or freehold basis so check before putting in an offer.
Two-bed terraced house, Swansea
This two-bed terrace in Tregof Village near Swansea in Wales is on the market for offers of £120,000 and over.
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There's no chain, making it perfect for first-time buyers looking for a quick move.
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It also comes with its own drive and the interior is finished to a modern standard.
The property is being sold on a freehold basis meaning you own the home and the land it stands on.
One-bedroom flat, Torquay
Developers have turned this large house in Torquay in Devon into five separate flats.
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One of these flats, which comes with one bedroom, one bathroom, one reception room and is walking distance to the town and harbour, costs £115,000.
It's a new property, which means there's no chain making it ideal for first-time buyers.
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But as it's a flat it is leasehold, so do check for annual ground rent and service charges before buying.
It's also fairly compact so you may need to compromise on space.
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We round-up what a 100 per cent mortgage loan is, whether they are good for first-time buyers and if you can you apply if you have bad credit.
Plus, here are nine ways to boost your chance of getting a mortgage.
And if you're in need of some inspiration, check out our My First Home series where we find out how first-time buyers have got on the housing ladder.
Inside John Terry’s ‘£47m’ property business including mansions with £150k astro turf golf course and fishing lakes
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