1 First-time buyers face a difficult balancing act, waiting for property prices to drop as low as they will go before interest rates start creeping up again and make mortgages less affordable. Much depends on the size of your deposit. If it is sizeable, then it makes sense to secure a fixed-rate mortgage while interest rates remain low. If you are struggling to save, carry on for say, six months, and then reassess. But do not be afraid to make a cheeky offer — it might net you a bargain.

2 Loan deals aimed at first-timers include a guarantor mortgage, where your parents guarantee to meet payments if you fall behind; a family offset mortgage, where your family’s savings interest is offset against your own mortgage interest; graduate mortgages, which lend more to those expected to have a lucrative career; and extended terms, with a repayment period of up to 40 years, which allows you to borrow more money.

3 Sign up with all the local estate agents and register with property portals such as Globrix and Rightmove. If you think that you have found a bargain, check that it is in an area that is going to weather the recession. Inspect the neighbourhood via www.upmystreet.com and www.neighbourhood.statistics.gov.uk

4 First-time buyers expect to pay a deposit of at least £20,000, according to Abbey. Set up a standing order to transfer money into a savings account every month. Make the most of your annual Isa allowance. You can invest up to £3,600 a year into a cash Isa without paying tax on the interest.

5 There are several government schemes to help first-time buyers. New Build HomeBuy is a shared ownership scheme, where the buyer and a housing association own part of a home. Buyers can start by purchasing as little as 25 per cent and build up a larger stake, moving to full ownership. Subsidised rent is payable on the rest to the housing association. There is also Open Market HomeBuy, which helps you to buy a property on the open market through shared equity. For more information: direct.gov.uk/en/ HomeAndCommunity

6 Set your budget. Although mortgage interest rates have dropped, what goes down will — eventually — go up. Additional costs may include stamp duty, valuation fees, arrangement fees and legal work. Make allowances for decoration, maintenance, insurance, utility bills, your television licence and food.

7 Consider buying with others. Almost half first time-buyers aged under 30 receive financial help from relatives, compared with 10 per cent in 1995, according to the Council of Mortgage Lenders. Relatives or friends can help you to come up with the deposit and share costs, but consider what would happen if someone wanted to sell his or her share. Obtain legal advice before committing.

8 Housebuilders are falling over themselves to attract first-time buyers with freebies such as paid deposits and cash-back offers. Ask about shared equity. You take out a mortgage and also an “equity loan”, which is usually charged at a lower rate. You own the property; should you sell, you repay the loans and a proportion of any increase in equity to the equity loan company. HomeBuy Direct is a shared equity scheme on selected new-build sites. A loan of up to 30 per cent of the property value is provided by the Government and developers. A small fee is paid on the loan but nothing is due for the first five years. A conventional mortgage is taken out to meet the rest of the price. To be eligible, your joint household income must be less than £60,000 a year.

9 The Government is piloting a Rent to HomeBuy Scheme, and some private developers also offer these, typically on new-build apartments. You rent the property for a set period, usually up to five years, often at a subsidised rent, while you save for a deposit, and have the right to buy your home within that period; you can secure a property without having to stump up all the cash for a deposit. Any money and effort you put into decor will not be wasted, because you end up owning the property.

10 Taking in a lodger will help you to pay the mortgage, and may enable you to afford a bigger home in a nicer area. You can earn up to £4,250 a year under the rent- a-room scheme without having to pay tax. You may be able to secure a special “rent-a-room mortgage” — lenders take into account what you would earn from letting a room on top of your salary when deciding how much to advance.

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