Over recent years the prospect of being able to get onto the property ladder has become a very bleak one for many people, with rising property prices, rising interest rates, and rising living costs all adding to the financial strain experienced by consumers. In addition to this the global credit crunch has resulted in tighter lending conditions, which has made it increasingly difficult for many people to raise the money that they need to get onto the property ladder.

The good news is that interest rates have fallen twice in the last few months, and house price inflation has slowed down, which means that affordability may be increased for the average first time buyer, increasing the chances of getting onto the property ladder. It is also important to remember that whilst the traditional way of getting onto the property ladder is to get a mortgage, find a property, put the offer in, and hopefully complete the purchase, there are other options that you can look at.

Property prices are still out of the reach of many first time buyers, but it may be an idea to go to a property auction, where there are often bargains to be found. Of course, you will most likely find yourself up against investors with shed loads of cold hard cash to throw around, but it is still worth a shot just on the off-chance that you get lucky and bag a bargain property at a price that you can afford.

If you don’t fancy the idea of facing the competition at auction you may want to consider shared ownership, where you only have to raise the mortgage for a set percentage of the property and you pay rent on the remainder. Over time you can increase your share in the property through a process known as staircasing, or you can continue with your original share and then sell your share when you want to move on. This has become a popular way for some people to get onto the property ladder without having to take out a huge mortgage or raise a massive deposit.

The government has also recognised the difficulties that many first time buyers are experiencing when it comes to getting on to the property ladder, and has introduced the HomeBuy scheme, which is a government funded scheme to help first time buyers purchase a property on the open market. Benefits of this scheme include access to an equity loan, which does not have to be repaid until the property is sold.

The increasing range of options means that it will hopefully become easier for the average first time buyer to get onto the property ladder in the future. Another option has been for buyers to team up with friends, relations, or partners to purchase a home, but this has caused problems in the event that the relationship turns sour and should therefore be given careful consideration.

Recent additions:

• House builder warns on house prices
• Buy to let mortgage figures soar
• The Benefits of a UK Mortgage Broker
• Repayment and Interest Only Mortgages
• Is it time to remortgage?

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