The housing market is a confusing place to be for anyone of any age and at different stages of the buying process. During the last 12 months, Leicester-based developer Jelson Homes, has witnessed a re-occurring pattern amongst its younger homeowners that it is now hoping to address in order to encourage more people to come forward and buy.

It seems that there is still some confusion when it comes to how much of a deposit is needed, and it’s the 25-35 year olds who are getting it wrong. Buyers who have visited Jelson during 2015 and who are in the younger age category are wrongly assuming that they won’t be able to raise an adequate deposit in order to move on to the property ladder.

Jackie Woodward, sales manager for Jelson Homes, comments: “We are keen to dispel some of the myths that come with buying a new home and it’s the deposit which is at the centre of such confusion. “At least one in ten of our younger visitors still believe that they need a deposit of more than 25% of the purchase price. This is just not right and one of our homes can be purchased for as little as a 5% deposit when bought through *Help to Buy.”

Thirty-somethings Aneta Dobrzynska and Jordan West, who had been renting for a year, wanted to buy a place of their own in Coventry, and when they decided to buy with Jelson they didn’t know what deposit was needed. Having spoken with the company’s independent mortgage advisor they discovered that 5% was all that was required when using the government-backed scheme.

Aneta said: ”We went to have a look around the homes at Holmwood in Coventry, almost certain that buying with Jelson was just a pipe dream, but we were so surprised when we were told we needed just 5%. “As prospective homeowners, it has been drummed into us that 25% is needed to secure a new home and so we always had that figure in mind when we were saving.

“We didn’t for a moment expect that we would be able to move out of rented accommodation but we are thrilled that we will be moving into our new home soon.”

Derry Walton from Meridian Mortgages in Leicester says: “For many, Help to Buy is a financial lifeline but still people aren’t taking advantage of it. “Under Help to Buy, borrowers need to raise 5% of the value of the property, but can borrow a further 20% on an interest free basis for the first five years of owning your property. At the sixth year purchasers will be charged a fee of 1.75% of the loan value. After this the fee will increase every year using the retail price index plus 1%.

“This is a great incentive and particularly for young people who already have a small number of savings but not enough to substantiate moving out of rented accommodation. “We have lots of advice available to help buyers navigate the mortgage process and hope to see the younger generations stepping up to buy in 2016.”

*Help to Buy is available on all homes, with a purchase price up to £600,000, subject to status and affordability criteria, terms and conditions apply. The Help to Buy scheme is subject to availability and may be withdrawn at any time without notice. Not to be used in conjunction with any other offer. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.