Homes you can buy for under £40,000 with a tiny deposit, including cottage on idyllic island

HOPEFUL homebuyers may not realise they could bag a stunning cottage or roomy terraced house for just a few thousand pounds' deposit.

Saving a deposit to buy your first home or move up the ladder is no easy feat as property values continue to rise.

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To buy a home in the UK, you need a deposit of at least 5% - but bumping it up to 10% will give you more mortgage options and access to lower rates.

The average house price now stands at £266,334, according to the latest data from lender Nationwide.

This means you'll need £13,000 even for a 5% deposit on an average priced home or to put down a 10% deposit, you'd need a hefty £26,000.

Of course, the lower the house price, the lower the deposit needed.

And, it is possible for first-time buyers to get a home for a lot less than the average.

In fact, there are properties you can buy for as little as £30,000 meaning you'd need to save £3,000 to have a deposit of 10%.

We have found ten of the cheapest properties available to buy on property website Zoopla - all costing less £35,000 or less.

As you might expect, there are some reasons why they the cheapest on the market, for example they are often in need of quite a bit of renovation.

In some cases, this may affect the mortgage you are able to get - but if it's considered to meet the basic living conditions, a little bit of required DIY shouldn't be an issue.

Most of these properties are in the North, so it would mean relocating if you're not already living in these regions.

First-time buyers are often in a better position than rival home hunters, this is because they are typically able to move faster.

Existing home owners can get caught up in lengthy chains waiting for their property to be sold before they are able to make a move.

This is especially the case in the existing climate where limited numbers of homes for sales means chains can go on for quite some time - with multiple home sales all relying on one transaction.

If this falls through the whole chain collapses.

If you can move quickly, you may even be able to use that to your advantage and even get a discount on the asking price if you emphasise your advantageous position.

Another positive for first-time buyers in the current market is that interest rates and the cost of getting a mortgage is coming down.

The less you have to pay for your mortgage, the higher it can go meaning you may be able to expand your budget.

There are also multiple schemes to help buyers get a foothold on the property ladder, it's worth checking out whether any may help you become an owner faster.

If you choose to buy a home that is below the market average, you should try to understand why it has a significant discount.

It could be the sellers are after a quick sale, but it could also be a sign of problems with the building that may cost a lot of money to fix.

Getting a survey done before buying a home should outline any issues and how much they are likely to cost. These reports can cost between £200-£300 but may save you thousands on unexpected problems in the long-run.

Here are the properties that you can currently buy for less than £35,000...

One-bedroom detached house, £30,000, Isle of Lewis

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This traditional cottage-style property is located within the Outer Hebrides in Scotland. And the sellers are open to offers of £30,000 or more.

Located on an island, you'd no doubt be surrounded by lots of natural beauty on your doorstep and it's perfect if you like the idea of a quieter and more tranquil style of living.

However, the listing does say that the property needs significant renovation work so it's likely to cost a fair bit more in building work.

Two-bedroom terraced house, £34,950, Durham

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In the town of Peterlee, this terraced property has two double bedroom, as well as private back yard.

It's close to Horden train station.

The property needs a lot of work to bring it up to a suitable living standard, including a new kitchen which won't come cheap.

However, if you have the time and resources it could end up as a sound investment.

Two-bedroom terraced house, £35,000, Hartlepool

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With two bedrooms and a modern kitchen, this is the cheapest home on the market that doesn't appear to need completely renovation work.

The listing describes the lounge as spacious and there is also a back yard area.

You could move into the home and live in it as it is or repaint the walls to add some personal touches.

Four-bedroom terraced house, £35,000, Hartlepool

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This decent-sized home has four bedrooms and three bathrooms - ideal if you have children and need some extra space.

It's suitable for living in and doesn't appear to need major renovation work - though, of course, a survey would reveal the full details.

The property is within a couple of miles of both Hartlepool and Seaton Carew train stations.

Two-bedroom terrace house, £35,000, Hartlepool

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Another property in Hartlepool. This one comes with two bedrooms as well as bathroom, lounge and kitchen area.

As with the previous property, this home is also within a couple of miles of both Hartlepool and Seaton Carew train stations.

The property is currently owned by a landlord and being sold with a tenant in place.

You'd need to consider if you'd want to take over as a new landlord or find out of there are other options.

Three-bedroom terraced house, £35,000, Durham

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This home is located in Bishop Auckland and has three bedrooms.

Parts of the property look as though they need some work such as new flooring, so you'd need to take that into account when putting together your budget.

The property also has a yard and on-street parking.

One-bedroom terraced house, £35,000, Durham

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This starter sized home is also located in Bishop Auckland.

The pictures appear to show signs of mould so it means that damp could be a problem and you'd probably need to spend money on treatment of some sort.

It could do with a spruce up with the walls and carpets all looking quite tired.

On the plus side, it's within a couple of miles of Bishop Auckland train station.

Two-bedroom bungalow, £35,000, Sunderland

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This property is located near schools, which means it could be a good choice for families.

However, as with other properties on the list it needs some renovation work including new windows.

It's within one mile of Sunderland station, ideal if you need to commute.

Two-bedroom terraced house, £35,000, Hartlepool

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This home has two-bedrooms and one bathroom.

It is close to primary schools and Hartlepool train station.

The property is being sold with a tenant currently living in the property so there is also an opportunity to become a landlord.

Two-bedroom terraced house, £35,000, Durham

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This is another property located in Durham but this one is in the town of Chester-le-street.

You'll need to splash out on some renovation with this property with new flooring among the work that appears to need doing.

The home comes with some outside space, however, with a yard at the rear.