Option 1: Cash help

Half of all first-time buyers are given or loaned cash by their parents to help with their deposit. Nearly a quarter of parents use their investments and savings, while others provide indirect help by letting their children live at home for longer while they save for a deposit. If parents and even grandparents can afford to gift cash to youngsters to help them on the ladder, it has several benefits for both parties. For instance, the larger the deposit a buyer has, the better the interest rate they will be able to secure. For the parent or grandparent, gifting cash can also help reduce an inheritance tax liability, providing that person lives for at least seven years after making the gift.

Option 2: Remortgaging

Parents who do not have the cash to give to their children can remortgage their own home to release money as a deposit for their offspring. This allows the son/daughter to have a bigger deposit thus making the new mortgage affordable.

Option 3: Act as a guarantor

Only a very few lenders will allow a parent to act as a guarantor for their child's mortgage, provided the parent has enough income to cover the debt. The parent is not obliged to pay anything in monthly repayments if the child can cover this, but should the child default on payments, the lender will pursue the parent. The guarantee is for the term of the mortgage and the parent has to assume that the child will eventually be able to take on the full responsibility.

Tips if your parents can't help you get on the ladder...

Professional and graduate mortgages. if you are eligible, these can help young professionals who expect future salary increases.

Interest-only. Paying Interest only means you never pay off the mortgage unless you revert to a repayment mortgage at some point. This will reduce your payments in the early years when you need to the most.

Increased mortgage term. Typically a term of 25 years is recommended but many providers will lend over 30, 35, or even 40 years. This will bring down monthly repayments.

Assisted-purchase schemes. Your local housing association may have such schemes available. You can buy a portion of the property with a mortgage and pay rent on the rest. Check with Premier Mortgage Search about schemes in your area.

Buy with friends. Some lenders will now allow this but you need to be up-front with your friends about the timetable for living at the property and what will happen when you sell.