What's the deal for first time buyers as the market hits fever pitch?
Thousands are racing to complete sales before next Wednesday's stamp duty deadline which has created a frenzy in the property market. But many first-time buyers have been shut out from this stampede, as the temporary tax break has helped fuel a 10 per cent surge in property values over the past year. In particular, prices have been pushed up in previously more affordable locations with poor transport links. Out of reach: Many first-time buyers have been shut out from the stampede as the temporary tax break has helped fuel a 10 per cent surge in property values over the past year  Home-working has turned these areas into what the lender Santander calls the 'virtual commuter belt'. But some stamp duty relief will remain until September 30 and, most importantly, lenders are no longer giving first-time buyers the cold-shoulder. Mortgage minefield  The 95 per cent loans on which most first-time buyers depend are now more available, thanks to the Government's mortgage guarantee scheme, under which the state guarantees 20 per cent of the loan on a property of up to 600,000. Barclays, HSBC, Lloyds, NatWest, Santander and Virgin Money are participating. Aneisha Beveridge, residential research director at Hamptons, the estate agency, says: 'In April, rates on these loans were high, but they are starting to come down now  which will help affordability.' Taxing issues  The stamp duty holiday continues on properties up to 250,000 until September 30. From July 1, first-time buyers in England and Northern Ireland will pay no tax on the first 300,000 and 5 per cent on the slice of the purchase price between 300,001 and 500,000. A first-time buyer acquiring a property of 500,000-plus does not benefit; the tax kicks in at 125,000 as normal. Different systems apply in Scotland and Wales. Bank of mum and dad  This particular bank may be less generous this year, amid concerns about job losses among the over-50s. If your parents are worried about their pensions and you do not have a deposit, check out the Barclays Springboard mortgage. This allows you to use the savings of friends and family as security, if they amount to 10 per cent of your property's price. These guarantors receive their money back after five years with interest. The rates on Springboard loans range from 3.65 to 3.85 per cent. Lifetime Isas  A lifetime Individual Savings Account (Isa) can help accumulate that all-important deposit. You can save up to 4,000 a year to which the Government adds 25 per cent meaning that you can receive 1,000. After a year, you can put the cash towards a property of up to 450,000. The app-based Moneybox account is the most popular (moneyboxapp.com). Your first home  The Government's First Home scheme will allow you to obtain a 30 per cent discount on a new home in an area where you live or work. Only homes of up to 250,000, or 420,000 in London, will be eligible and your household earnings must be below 80,000, or 90,000 in London. If you like the sound of this, curb your enthusiasm as the homes are not yet built. Help to buy  Help to Buy covers new-build homes in England. If you have a 5 per cent deposit and can arrange a mortgage, you can get an equity loan from the Government covering 20 per cent (40 per cent in London) of the price. You do not pay interest on this for the first five years. Shared ownership  Shared Ownership permits you to buy or borrow to acquire a share in a home and pay a subsidised rent on the rest, with the aim of 'staircasing', that is increasing your share every year until you are the outright owner. The outlay is modest but maintenance fees are payable. Anne Ashworth