One of the most troubling aspects for a first time home buyer is securing a mortgage that includes a deposit.  This is due to the fact that the best mortgage terms usually come attached to high deposits, which most first time buyers, who are young, do not have at this stage of life.

Typically, a mortgage deposit can range from 15-25% of the property price, thus if you plan to purchase a home valued at the average mortgage rate of £150,000 with a deposit due of 20% then you would need to save £30,000.

One of the most popular ways to build a deposit is to start saving or taking on an extra job.  However, deposits are large, so that simply reducing the amount you spend and working a second job may not be a time efficient way to earn the money.  Thus, you may have to think about other avenues.

Many people receive deposit money from their parents in what is called a gifted deposit.  This type of deposit has lower interest rate attached to it, as well as a lower tax rate for both your parents and you.  Thus, if this is the manner in which you will secure your deposit it is essential that you gain the assistance of a mortgage advisor so that the transfer qualifies.

If your parents are unable to help you out, other blood relatives can also take advantage of the gifted deposit, so if there are other people who are able to help you with the deposit you may also want to look into the proper way to proceed for tax purposes.

You may also want to look into taking a loan from a bank or other funding source for your mortgage deposit.  Although it is not advisable to take out a loan on top of the mortgage loan that you are attempting to secure, the amount that you save on your mortgage interest rate and overall tax duty may make it worthwhile to explore this topic.

Some people also consider looking into investment options abroad that provide quick turnaround.  Although it is a bit harder to secure, some people are discovering that purchasing a property overseas is cheaper with the plan to sell the property and use the equity to fund a healthier mortgage deposit back within the UK.  However, it is risky and often complicated to purchase property overseas so you will want to carefully consider the option and seek professional advice before proceeding.

Finally, a new and growing way to secure a deposit is to purchase a property in a group so that multiple incomes are considered and compiled to help build a deposit.  You will need to carefully consider how well you can live with the others in your group and consider how trustworthy they are before you sign into a legally binding mortgage.  Sometimes it can get complicated to co-buy a home in this manner, but it is a great way to get a foot up on the property ladder.