What to consider when looking at ways to buy your own home

Owning a home is a dream for many people in the UK, but it seems to be getting harder and harder to achieve. The number of adults still living at home with parents has risen over the past decade, and the recent Home Affordability Index, from the Skipton Building Society, revealed that 98% of these adults could not afford to pay what the average first-time buyer pays for a house in their area.

But if you do want to buy your own home there are various ways that you can help to make it happen. In this article we look at a few of these, and hope that the information will be useful to you.

Consider buying with others

The most difficult way to buy a home is to do it alone. If you are in a stable relationship, buying a property with a partner could be the best option. But another thing to consider is buying with someone else such as a sibling or friend. This could be a helpful way for you both to get a foot on the property ladder. 

If you choose this route, it’s important to agree up front what would happen should your circumstances change in future. For example, if one of you wants to move in with a partner or needs to move away for work. But if you are confident that you can navigate such potential future issues, buying with another person could be a good way to start owning your own home.

Save save save

Whether you plan to buy on your own or with someone else, the key thing is to save as much money in advance as you can. Buying a home is an expensive business, not just in terms of the cost of the property itself, but also additional costs such as solicitor’s fees, stamp duty, and moving costs. The sooner you can start saving for your home, the better.

One thing that is a big help when doing this is a Lifetime ISA (Individual Savings Account). This savings scheme enables you to save up to £4,000 each year, and the government will add a 25% bonus to your savings, up to a maximum of £1,000 per year. So if you can manage to save £4000 a year yourself, that will increase to £5000 with government help.

You must make your first payment into your Lifetime ISA before you’re 40 and can only pay into it until you are 50. You can withdraw your savings either when you’re buying your first home, reach the age of 60 or are diagnosed as terminally ill, with less than 12 months to live.

You can find out more about the Lifetime ISA on the Gov UK website.

Find the best deal on a mortgage

Buying a property almost always involves finding a mortgage. A mortgage is a loan specifically to buy a home and can be either on a repayment or interest-only basis. With a repayment mortgage you pay back some of the value of the property each month, as well as some of the interest on the loan. With an interest-only mortgage you pay off just the interest on the loan, and take out an insurance policy to cover the value of the property.

The size of mortgage you will be given depends on your income, the value of the property, and the amount of deposit you are able to pay. Many lenders prefer a deposit of at least 10%, but will often accept 5% for first time buyers. The important thing is to shop around and find the best mortgage deal for your circumstances. Comparison sites such as MoneySuperMarket and Compare the Market can be a useful starting point. 

But always make sure that the mortgage payments are affordable for you, because your home will be used as security against the mortgage which means that as a last resort your lender could repossess (take back) your home if you were unable to keep up repayments. 

The First Homes Scheme

The First Homes Scheme enables first-time buyers to buy a home as their main residence for 30% to 50% less than its market value. This home can be either a new home built by a developer or an existing First Homes home for sale through an estate agent. 

The First Homes Scheme is only available in England and is run by local councils. To be eligible you must be a first-time buyer aged 18 or above, earning less than £80,000 a year before tax (£90,000 if the property is in London) and able to get a mortgage for at least half the price of the home.

Some local councils may set additional eligibility criteria, such as prioritising First Homes discounts for key workers, those already living in the area or those on lower incomes. If you are buying a home with one or more others you all need to meet the income criteria but only one of you needs to meet any other local criteria.

You can find out more about the First Homes Scheme on the Gov UK website.

Shared Ownership

Another scheme to make home ownership more affordable is Shared Ownership. Shared Ownership does not mean you have to share the property with anyone else. It means that you buy a share of the property – rather than its whole value – and pay rent to a landlord for the rest.

When you buy a home through Shared Ownership, you initially buy a share between 10% and 75% of the property’s full market value. You will need to pay a deposit on the property, which is usually between 5% and 10% of the share you’re buying, and will also need to take out a mortgage to cover the cost of the share you are buying.

You will also pay rent to the landlord for the share they own, and also monthly ground rent and service charges as required for the property. All shared ownership homes are leasehold properties.

As your financial situation changes you can buy more shares in your home in the future if you want to do so. This is known as staircasing. The greater the share you own in your home, the less rent you will need to pay the landlord.

Shared Ownership can apply to both new-build homes and existing homes sold through a shared ownership resale scheme. Shared Ownership homes are offered by a range of providers including local councils, housing associations, and other organisations. 

You can find out more about Shared Ownership on the Gov UK website.

Rent to Buy

Another option to help you buy a home is the government Rent to Buy scheme. This is available in England, apart from London, which is covered by a separate scheme called London Living Rent.

The Rent to Buy scheme is available to first-time buyers in full or part time employment, and also to people returning to home ownership following a relationship breakdown.

The concept of Rent to Buy is that you move into a property that is in the scheme, pay rent on it, and at the same time save for a deposit to buy your own property. Your initial Rent to Buy tenancy agreement is usually for 2 years but can often be extended up to 5 years if you need more time to save for a deposit, and your landlord agrees.

In the Rent to Buy scheme, once you have saved enough for a deposit and can get a mortgage, you have the choice of buying either the property you are in or buying a different home. In both cases, you could buy your home through Shared Ownership (see above) if you cannot afford the full amount.

You can find out more about Rent to Buy on the Gov UK website.

We hope that this article has provided some useful information about potential ways to buy a home in 2026. 

For all homebuyers there are then the ongoing costs of running a home, and these can be more challenging for first-time buyers. If you are in the early stages of home ownership and are finding things financially testing, be aware that Loans 2 Go offer a range of personal loans which may be able to help. Full details, including terms and conditions are available on our website. Borrowing is optional and may not be suitable for everyone, so always consider your circumstances and affordability before applying.

Also remember to visit us here again soon at Loans 2 Go for more hints and tips on family finances and everyday living.