More than a quarter of UK first-time buyers rely on financial gifts from family to secure a deposit, while almost two-thirds take on additional work to get onto the property ladder, according to research from mortgage broker Mojo Mortgages.
The company’s First-Time Buyer Sentiment Survey found that 26% of first-time buyers rely on gifted family deposits, highlighting the challenges facing aspiring homeowners as property prices remain high relative to average wages.
Meanwhile, 64% said they relied on side hustles, including online reselling and freelance work, to build their savings. More than half of those using additional income reported that it had cut two to three years off the time needed to save for a deposit.
The financial pressure is also influencing career decisions, with 22% of respondents admitting to staying in a toxic job to maintain the income stability needed for a mortgage application.
Against this backdrop, government-backed schemes and specialist savings accounts could offer alternative routes into homeownership, although eligibility requirements and restrictions vary.
The newly announced Your First Home scheme is designed to help buyers purchase eligible new-build properties with a 2.5% cash deposit, supported by a government-backed 20% equity loan. However, household income caps and property price limits could restrict access.
Other options include the Lifetime ISA, which offers eligible first-time buyers under 40 a 25% government bonus on annual savings of up to £4,000. Buyers can receive up to £1,000 a year, but the scheme carries a £450,000 property price limit and penalties for non-qualifying withdrawals.
The First Homes scheme offers selected new-build properties at discounts of 30% to 50% below market value, particularly benefiting eligible local residents and key workers. Availability depends on local allocations, and the discount must be passed on when the property is sold.
Meanwhile, 95% loan-to-value mortgages allow buyers to purchase homes with a 5% deposit, while shared ownership enables eligible households to buy a proportion of a property and pay rent on the remaining share.
