As people borrow up to ten times their salary to buy their first home and Gordon Brown puts housing at the top of his agenda, Lindsay Jennings looks at how first time buyers can get on the property ladder.

WHEN Nicki Forgèt left for a new life in Canada four years ago, little did she realise the struggle she would have to get back on the property ladder when she returned to Britain. Nicki, 39, came back to the North-East with her two teenage boys two years ago when her mother died.

"I couldn't believe how much house prices had risen," says the social worker. "I had sold a lovely three-bedroom home three years earlier for £68,000. The equivalent to buy again was almost £200,000.

"As a single mum and classed as a first time buyer again, this was way out of my reach, even though I earn a reasonable salary."

Given the current climate of five interest rate rises in 12 months, young people having the largest amount of unsecured debt in the UK (the average person under 30 owes nearly £8,000, according to a recent survey by the Alliance and Leicester) and average house prices in the North-East at around £140,000, the challenges facing prospective first time buyers today are immense.

Nicki ended up in rented accommodation for the first year, but after taking advice from Pure Mortgage Solutions, based near Richmond, North Yorkshire, she finally secured a 100 per cent mortgage on a property in Haughton Road, Darlington, priced at £108,000.

Mortgage broker mform.co.uk announced yesterday that one in three first time buyers are being forced to borrow more than four times their salary as they struggle to step onto that rung. Forty per cent of the 18 to 24-year-olds questioned said they planned to borrow five times their salary, while 14 per cent said they would stretch to six times.

Philippa Colley, managing director of Pure, says the figure can be even higher. "I've heard of people borrowing up to ten times their income, which is just unacceptable," she says.

And while it may be tempting to go for a fixed rate mortgage, it may not be the best answer for first time buyers, given the recent interest rate rises. "The longer term fixed rates are cheaper but first time buyers don't stay in their first homes for very long," says Mrs Colley. "If they're single and buy a one-bedroom flat, once they meet someone or start a family they may want to move on but they may be tied into a long term fixed rate mortgage with potentially high get-out rates."

But there are ways to make getting on the property ladder easier...

A LITTLE HELP FROM YOUR FRIENDS, OR FAMILY

Parents are now remortgaging their homes in order to give their children the deposits they need or are acting as guarantors.

Many people are opting to buy with friends. Louise Fletcher, founder of propertypriceadvice.co.uk, says: "Co-buying is a lot more common and you don't have to get a special mortgage as most lenders will accept up to four people on the deeds.

"But you need to make sure you have the legal side covered properly. Get a Deed of Trust which stipulates how much money you've put in, make a will because you need to think of the people still living in the house, and draw up a co-habitation agreement so everyone knows who's paying what or doing what in the house from the outset."

Another option is to rent out a room to help cover the mortgage. You can earn tax-free rental of up to £4,250 a year.

DO YOUR HOMEWORK

There are far more mortgage products on offer today. Some companies offer 100 per cent mortgages and lend extra to cover costs such as stamp duty - although these deals may be dependent on income and credit history.

"There are also a lot more shared ownership schemes where an individual might own 75 per cent and rent the other 25 per cent then, at a time when they can afford it, they can buy the other part," says Mrs Colley. "It tends to be banks that run these schemes."

Other ways of securing the required mortgage is by spreading repayments over longer periods of time. But remember to take into account solicitor and surveyor fees, valuations, taxes, insurance and removal costs before buying.

BUYING TO LET

Getting on the property ladder doesn't mean you have to live in the property yourself. One option is to buy in a less desirable area, one which may be ripe for regeneration, and let the property. "Buy to let mortgages are becoming more popular among first time buyers," says Mrs Colley.

"I know of people who bought flats in Edinburgh ten years ago. Prices then rose to such a high that they were able sell them and buy properties in areas that they want to be based. The biggest difference is that, generally, a 15 per cent deposit is required, although that is coming down to ten per cent."

GETTING HELP FROM THE GOVERNMENT

Yesterday Gordon Brown pledged to accelerate annual house building from 200,000 to 240,000 in his pre-Queen's Speech. But there are other ways he could help first time buyers.

"One of the biggest hindrances to first time buyers is stamp duty, which they have to pay on properties over £125,000," says Mrs Colley.

ADVICE ROUND UP

Find out as much as you can about the market beforehand. Glean additional tips from property television programmes, such as Location, Location, Location, and websites like moneysavingexpert.com or www.which.co.uk

Shop around for the best mortgage deals. Mortgages with low interest rates can come with hefty repayment fees or lock you in after an initial deal to their standard variable rate.

Consider a new build. The maintenance costs for newly built homes are considerably lower, also many building companies offer deals to encourage first time buyers, such as contributions towards deposits.

And finally, don't panic. Says Louisa Fletcher: "There is an unrealistic expectation these days to expect people in their 20s to buy their own properties. My advice would be to wait until they're in their early 30s, save up for a good deposit, pay off student debts and get their careers going. Above all, don't panic."