First-time buyers hoping to get on the property ladder are being urged to consider shared ownership as a means of purchasing their first property.

Up to two-thirds of those taking their first step into the homeownership market are doing so through shared ownership schemes, comment David Wilson and Grange Mortgage Services.

The shared equity deals mean buyers do not have to overstretch their budget, they add.

"The percentage paid by the housebuilder can act as a deposit so these interest-free deferred loans provide a win/win solution to getting on the property ladder," they comment.

Potential buyers should also be saving as much as possible, keeping all their bank accounts in order and budgeting sensibly, the companies continue.

Under the HomeBuy Direct scheme through David Wilson, buyers with a 70 per cent mortgage pay no interest on the 30 per cent loan for five years, if the property is sold within that time.

Source: Direct News 15/6/09