There’s no feeling quite like getting the keys to your first home, but climbing the first rung of the property ladder is no easy task. The average UK home now costs £269,000, according to official figures, with those in inner-city locations often facing even higher prices.1
The cost of living has also soared in recent years, making it more difficult for prospective buyers to save a deposit. Those who are trying to save while renting face particular challenges, with the majority of their monthly income being spent on housing costs and other essentials.
The average annual cost of renting has risen 21% over the past three years, according to property listing site Zoopla.2 Bills all went up this April too. The typical water bill rose by £123 per year,3 for example, while the typical council tax bill rose by almost 5% in most local authorities in England.4
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With the cost of living so high, it is hardly surprising that first-time buyers are relying heavily on loved ones for support when saving for their first home.
Thirty-one percent of first-time buyers received financial support from family or friends when purchasing their home in 2023/24, according to the latest government housing survey. A further 9% used an inheritance as a source of deposit.
Choosing the right mortgage
Not everyone’s family is in a position to help, but there are some steps buyers can take to help themselves. Choosing the right mortgage is particularly important.
If your family wants to offer support, but can’t commit to gifting you money towards a deposit, the Lloyds Lend a Hand Mortgage could be a good option.
This allows a family member to put 10% of the property purchase price into a three-year fixed-term savings account as security. If you keep up with repayments, they get their savings back in three years’ time with interest – a win-win.
No additional deposit is needed, and the interest rate on your mortgage will be fixed for three years to help give you stability. It will be your home, and your home alone. Only your name will be on the mortgage and you will have legal rights over the property.
There are some terms and conditions – for example you or your family member will need to have a Club Lloyds account before you can apply. You will need to be a first-time buyer living and purchasing a home in England or Wales, and you cannot use the mortgage to purchase a new-build property. Prospective buyers can apply to borrow up to £500,000.
If you’re a Club Lloyds customer, you could get a discount off your initial mortgage rate. A £5 monthly fee may apply for Club Lloyds and exclusions apply. Lending is also subject to a full mortgage application.
Another product that could be worth considering is the Lloyds First-Time Buyer Boost Mortgage. This could allow you to borrow up to 22% more than usual.
To qualify, you need to have a deposit of 10% or more and the total household income of everyone applying must be at least £50,000. At least one person applying must never have owned a property before, and all applicants need to be employed by a third party rather than self-employed.
Whichever product you decide to go with, always pay close attention to the rate and fees. The average mortgage rate is currently 5.05%, according to financial data company Moneyfacts.5
As with any mortgage application, remember that the decision to lend will be subject to an assessment of your circumstances.
Government schemes for first-time buyers
It’s not just your family and your bank that can help out, but potentially the government too.
A Lifetime ISA is one of the most popular savings tools among first-time buyers. You can pay up to £4,000 into this type of account each year and benefit from a 25% government bonus, worth up to £1,000 per year.
Lloyds doesn’t offer a Lifetime ISA, but you can use one from another provider in conjunction with a Lloyds mortgage when purchasing a property.
Lifetime ISAs come with a range of terms and conditions – so make sure to read them carefully. You can only withdraw the money to purchase a first home worth up to £450,000, or for retirement, otherwise you will incur a penalty.
Other government schemes are also available and could give you an additional boost. These include initiatives like the Right to Buy scheme, shared ownership and the Forces Help to Buy scheme. If you opened a Help to Buy ISA before the scheme closed, Lloyds can also help support your mortgage application.
How much could you borrow?
Before you begin your property search, use Lloyds’s online mortgage calculator to work out how much you might be able to borrow and what your monthly repayments might be – all in a matter of minutes.
The next step is to apply for an agreement in principle. The process only takes 15 minutes and has no impact on your credit score. If you have any questions during the online process, you can speak to a Lloyds mortgage expert via the web chat.6
While it doesn’t offer any guarantees, an agreement in principle can be shown to estate agents to prove you are ready to offer on your dream home. If you decide to proceed, you will then need to complete a full mortgage application.
Product terms and conditions and exclusions apply.
All lending is subject to status. You could lose your home if you don’t keep up your mortgage repayments.
Footnotes
1 Source: HM Land Registry house price index. Data covers the month of May, taken from the official report published on 16 July 2025.
2 Source: Zoopla Rental Market Report, published on 11 June 2025.
3 Source: Ofwat and Water UK. The £123 figure refers to the average annual bill hike from April 2025.
4 Source: Ministry of Housing, Communities and Local Government.
5 Source: Moneyfacts as of 25 July 2025.
6 Web chat opening hours: Monday-Friday, 8am-9.30pm; Saturday, 9am-6pm, Sunday, 10am to 6pm. Opening hours are correct as of 27th June 2025.
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