FIRST-TIME buyers don’t have to live in a dive to get onto the property market as we reveal in this round-up of new builds available with just a 5 per cent deposit.

The government’s Help to Buy equity loan scheme lends up to 20 per cent of the home’s value – or 40 per cent in London – as long as you can put down a deposit of at least 5 per cent.

 There are an array of homes available for first-time buyers with a 5 per cent deposit

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There are an array of homes available for first-time buyers with a 5 per cent deposit

First-time buyers then take out a mortgage as normal for the remainder of the cash.

For example, you put down a 5 per cent deposit, the government gives you a loan for 20 per cent, and then you get a mortgage for the remaining 75 per cent.

This is particularly useful to first-time buyers who can’t get a big enough mortgage based on their salary, despite having enough for a deposit.

The catch is that the scheme is only available on new builds, and while the government loan is interest-free for the first five years, after the five years you’ll be charged 1.75 per cent interest, which will increase by inflation, plus 1 per cent.

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 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.
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So you ideally need to clear the loan before the five years is up.

You can also “staircase” – or buy chunks of the property owned by the government to reduce the loan – although if the government still owns a slice when you come to sell it will get the proportion of what it owns back based on the value at the sale.

To help give you some inspiration, Zoopla has shared the ten most viewed properties on its site that are available using a Help to Buy equity loan.

Just watch out for whether the properties are leasehold or freehold, as many new build homeowners have been stung by dodgy leases with doubling ground rent clauses and homes they can’t sell.

The government says the majority of Help to Buy new builds are already freehold and it plans that they all will be in future – although these rules have yet to take force.

Three-bed terrace, Coventry

 This semi in Coventry is on the market for less than £150,000

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This semi in Coventry is on the market for less than £150,000Credit: Zoopla

This three-bed terrace built by Persimmon comes in at a cool £147,996.

It has three bedrooms – two doubles and one single – two bathrooms, and a separate living room, plus a kitchen/diner.

 It has stylish bedrooms, although they are on the small side

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It has stylish bedrooms, although they are on the small sideCredit: Zoopla

First-time buyers can snap up the property with just a 5 per cent deposit under the Help to Buy equity loan scheme, which would mean putting down at least £7,399.80.

We’ve asked if it’s leasehold or freehold.

Two-bed terrace, Birmingham

 This bedroom is tight for space but there are built in wardrobes

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This bedroom is tight for space but there are built in wardrobesCredit: Zoopla

First-time buyers can snap up this two-bed house in Tyseley near Birmingham for less than £150,000 at £147,996.

The property, which has been built by Persimmon, has two bathrooms, a separate living room, and a kitchen/diner. There’s also driveway parking.

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You can buy the house with a 5 per cent deposit using the Help to Buy equity loan scheme, which means saving up at least £7,399.80.

 There's a kitchen/diner looking onto the garden

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There’s a kitchen/diner looking onto the gardenCredit: Zoopla

The property is also available under the government’s affordable home scheme but you must meet certain criteria, such as earn a certain level, to qualify for this.

We’ve asked if it’s leasehold or freehold.

Two-bed end of terrace, Croydon

 This property in Croydon could be good for commuters to London

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This property in Croydon could be good for commuters to LondonCredit: Zoopla

This freehold new-build has two bedrooms, one bathroom, a separate lounge and a kitchen/diner for £350,000.

It’s unclear who built the house but it’s being marketed by HT Estates, and as it’s in London, it qualifies for a larger up to 40 per cent Help to Buy equity loan.

 The kitchen/diner has bifold doors to the garden

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The kitchen/diner has bifold doors to the gardenCredit: Zoopla

Parking is off-street and you’ll need at least a 5 per cent deposit of £17,500 to get it.

Three-bed semi, Bradford

 This house is a steal at £107,000

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This house is a steal at £107,000Credit: Zoopla

This property in Yorkshire has two double bedrooms and one single room, one bathroom, a lounge, and a kitchen/diner.

It’s the cheapest property in our round-up at just £107,000, meaning you’d need a 5 per cent deposit of £5,350 to snap it up.

 There's a modern look throughout the property

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There’s a modern look throughout the propertyCredit: Zoopla

The house is being marketed by Keymove Bradford, although it’s unclear who built it.

This is a freehold property.

Four-bed detached house, Swansea

 First-time buyers near Swansea might want to check out this property

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First-time buyers near Swansea might want to check out this propertyCredit: Zoopla

Barratt Homes built this property, which has four bedrooms – two doubles and two singles, two bathrooms, a lounge, and a kitchen/diner.

 There's a kitchen/diner with a breakfast bar

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There’s a kitchen/diner with a breakfast barCredit: Zoopla

It comes in at £249,995 meaning you’d need at least a 5 per cent deposit of £12,499.75 to buy it.

This is a freehold property.

Four-bed detached house, Tewkesbury

 This property in Tewkesbury is massive

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This property in Tewkesbury is massiveCredit: Zoopla

First-time buyers need at least a hefty £20,999.75 5 per cent deposit to snap up this fancy home in Gloucestershire as the property has an asking price of £419,995.

Built by Linden Homes, the home has a separate lounge as well as a massive kitchen, dining, family area.

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 It has a large lounge

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It has a large loungeCredit: Zoopla
 And there's a roomy kitchen/diner too

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And there’s a roomy kitchen/diner tooCredit: Zoopla

There are four double rooms – two of which are ensuite, a separate upstairs bathroom, and a downstairs cloakroom – plus, a utility room.

We’ve asked if it’s leasehold or freehold.

Three-bed detached house, Bridgend

 This detached property is on sale in Bridgend

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This detached property is on sale in BridgendCredit: Zoopla

Wannabe homebuyers in Wales can snap up this property in Bridgend, near Swansea, for £199,995 if they have at least a 5 per cent deposit of £9,999.75.

 It has a stylish bedroom

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It has a stylish bedroomCredit: Zoopla

The property, which was built by Persimmon, has three double rooms, although they are on the small side, two bathrooms, a living room, and a kitchen/diner.

We’ve asked if it’s freehold or leasehold.

Four-bed semi, Nottingham

 This new-build is built over three floors

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This new-build is built over three floorsCredit: Zoopla

This unusual-looking property is on the market for £299,950 meaning first-time buyers can get it with at least a 5 per cent deposit of £14,997.50.

There are three floors with a lounge, kitchen/diner, and cloakroom on the ground floor, two bedrooms and two bathrooms on the first floor, and the same again on the top floor.

 There's a massive bedroom on one floor

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There’s a massive bedroom on one floorCredit: Zoopla
 It has a kitchen/diner opening onto the garden

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It has a kitchen/diner opening onto the gardenCredit: Zoopla

It also comes with off-street parking, and some of the rooms have balconies.

The property is being sold by Elite Homes UK.

This is a freehold property.

Two bed mainsonette, Roehampton

 This bright maisonette is built over two floors

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This bright maisonette is built over two floorsCredit: Zoopla

First-time buyers can snap up this airy property on the outskirts of London for £500,000 – although that does mean coughing up at least a 5 per cent deposit of £25,000.

You’ll need to climb up a flight of stairs to get to the inside, which is spread over two floors.

On the first floor is a kitchen/diner/lounge and one bedroom with an ensuite, while on the mezzanine floor is a second bedroom, separate bathroom and small lounge space.

 There's an airy bedroom on the mezzanine level

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There’s an airy bedroom on the mezzanine levelCredit: Zoopla

There’s also a covered balcony on the first floor.

Bear in mind that this is a leasehold property, although it has 250 left on it and the ground rent is a “peppercorn” fee, which means it’s only a small amount.

There is, however, a service charge which is yet to be confirmed. The property is being sold by Hamptons International.

Three-bed detached house, Ilford

 This property may be at the pricey end for first-time buyers at £539,950

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This property may be at the pricey end for first-time buyers at £539,950Credit: Zoopla

This fancy property in East London is a pricey £539,950, although it is available to first-time buyers with at least a 5 per cent deposit of £26,997.50.

There aren’t any pictures of inside but the new build promises glossy kitchen units, and two modern bathrooms.

This freehold property is being sold by Porter Glenny estate agent.

Zoopla has also created a tool to help first-time buyers calculate how much they can expect to borrow using a Help to Buy equity loan.

For more on first-time buyers, check out our My First Home series.

You might also want to see our round-up of government schemes for wannabe homeowners.

There’s even a way first-time buyers can buy a house WITHOUT a mortgage under a new scheme.

Halifax launches new 100% mortgage with no deposit for first-time buyers





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