We're open for business as usual
We want to give you peace of mind that we're still comparing and connecting you with our verified partners.
Hide alert

Advice On Financing Your Property

About this guide

The thought of saving money for a house deposit can be daunting, but it’s important to be aware of the help and methods available. There are many options to help with financing a property, from government Help to Buy schemes to receiving a gifted deposit from family. 

It’s vital to plan for financing your property, otherwise, it will delay the whole process. Compare My Move work hard to share advice and tips on finding the best way to finance a property to suit every buyer’s situation. 

  • 1. How to buy a home using a Lifetime ISA

    A Lifetime ISA (LISA) is a government scheme that allows you to save a deposit for your first house or to use later in retirement. You’ll receive a 25% government bonus on anything saved, with a maximum amount you can save at £4,000 a year.

    The Lifetime ISA will allow you to earn interest on your bonus, you can open the account if you’re aged between 18-40 and the bonus applies until you’re 50 years old.

    Read this article
  • 2. How to get a mortgage for buying a house at auction?

    If you're not a cash buyer, you will need to get a mortgage for buying a house at auction. Getting a mortgage for a house at auction will work the same as the traditional way. You will have to contact a mortgage provider, either in branch or through a mortgage broker to let them know your situation.

    Your provider or broker will have dealt with a similar situation before, and will know how best to help you.

    Read this article
  • 3. What is a gifted mortgage deposit?

    A gifted mortgage deposit is a cash gift, usually from a family member, which will cover part of or all of the deposit for a house. Many first-time buyers rely on a gifted mortgage deposit to buy their first home.

    The experts at Compare My Move share their knowledge and advice on buying a house with a gifted mortgage deposit.

    Read this article
  • 4. What are guarantor mortgages?

    A guarantor mortgage is when a family member becomes a guarantor and agrees to cover your mortgage payments if you’re unable to. It can help you secure a mortgage if you’re struggling to save for a deposit or have financial circumstances that may dissuade mortgage lenders.

    Parents and family members often offer to help out when someone is struggling to get onto the property ladder. One way to do so is to become a guarantor for a mortgage. However, there are risks to consider when agreeing to this type of mortgage and so it’s a decision not to be taken lightly. This is why Compare My Move have worked with property and finance experts to create an article explaining what a guarantor mortgage is, how it works and what the pros and cons are.

    Read this article
  • 5. How do I save for a mortgage deposit?

    Creating and sticking to a budget is one of the best ways to save for a deposit. Take a look at your outgoings to see how much you’re left with each month after all essentials bills.

    Boost your savings with savings accounts such as the Lifetime ISA and consider getting a second income. Flat sharing while you save can also be highly beneficial.

    Be sure to make a clear and achievable plan for how much you need to save and how you plan to do so.

    Read this article
  • 6. Help to Buy ISA vs Lifetime ISA - which is better?

    If you’re looking to boost your house deposit savings, taking advantage of the government’s Help to Buy ISA or Lifetime ISA is a wise option. Although the Help to Buy ISA ended in November 2019, those with ISAs open can still save into it until 2029.

    Compare My Move’s experts take a look at both ISAs to help you decide which will benefit you the most when it comes to saving for a house deposit.

    Read this article
  • 7. What is a Help to Buy ISA?

    The Help to Buy ISA is a savings account for first-time buyers which is supplemented by a 25% government bonus.

    The government made the decision to stop new accounts being opened as of 30 November 2019. Those who opened a Help to Buy ISA before this date will be able to continue saving into their accounts until November 2029.

    To have opened a Help to Buy ISA you will have needed to be a first-time buyer and over the age of sixteen.

    Read this article
  • 8. What happens in a mortgage interview?

    A mortgage interview is arranged so that lenders can ensure that you qualify for a loan. In this meeting they will explore how much mortgage you can afford to take out and you will also be able to discuss the types of mortgages available to you.

    During you mortgage interview a lender will want to get an idea of your financial situation and employment status, looking into everything from your credit score to your spending habits.

    Read this article
  • 9. What Credit Score Do You Need for a Mortgage?

    When it comes to getting a mortgage, there isn’t a particular credit score required by mortgage lenders.

    The higher your credit score, the more likely you are to be accepted for a mortgage. An excellent credit rating can make you eligible for a wider range of mortgages and better deals.

    Essentially, lenders want assurance that the person taking out the loan will be able to make their monthly repayments without issue. To ensure the person applying for the mortgage is financially responsible, lenders will run a credit check on the person.

    Read this article
  • 10. Can You Get a Mortgage on a Zero-Hour Contract?

    It is possible to be approved for a mortgage if you are working a zero-hour contract, however it can be more difficult.

    Zero hour contract workers have no minimum hours or income and lenders will largely make their decision on your financial stability and some lenders won’t lend to zero-hour contract workers at all.

    However, there are steps you can take to strengthen your mortgage application whilst on a zero-hour contract.

    Read this article