Discover first-time buyer schemes to help you buy a home
Getting onto the property ladder can feel really challenging, with saving for a deposit, rising house prices, and securing a mortgage being common concerns for many buyers. If saving for a deposit or finding the right home at an affordable price makes it difficult to buy on the open market, it is definitely worth exploring the government house-buying schemes currently available.
These initiatives are specifically designed to help people get onto the property ladder, usually supporting first-time buyers through lower deposit mortgages, discounts on homes, or shared ownership options, making it much easier to buy with a deposit of just 5%.
A new permanent mortgage guarantee scheme was launched in July 2025 to replace the previous temporary version. Working behind the scenes, this initiative encourages banks to offer 95% mortgages. You do not need to apply for it, and you may not even know whether your chosen bank offers it, as many providers already offer 95% mortgages independently.
Whether a provider uses the scheme or not should not influence your decision. You should always compare options or use an independent, fee-free mortgage broker to find the best deal for your personal circumstances.
Building your deposit and sharing ownership
A Lifetime ISA is a dedicated account designed to strongly encourage people to save for their first home or retirement. You can save up to £4,000 each year, and the government will generously top this amount up with a 25% bonus. This makes it one of the most popular and accessible government schemes for buying a house, providing a substantial boost to your deposit even before you start looking at properties.
To open a Lifetime ISA, you must be aged 18 or over but under 40. Additionally, you must either be a UK resident, a member of the armed forces or a crown servant (such as diplomatic or overseas Civil Service), or the spouse or registered civil partner of a crown servant, even if you live outside the UK.
Shared ownership enables eligible buyers to obtain a specialised mortgage to purchase a share of a property, usually between 10% and 75%, and pay rent on the remaining share to the housing association or private developer that owns the building.
Buying becomes much more affordable because you are only purchasing a share of the property, meaning your deposit can be as low as 5% of that specific share’s price rather than the entire property value. You should be aware that these properties are usually leasehold, and you may have to pay a monthly service charge and contribute to maintenance fees for major building works.
Exploring local discounts and new builds
The First Homes scheme offers first-time buyers the chance to purchase a newly built home with a discount of at least 30%. This scheme is exclusively available to first-time buyers in England purchasing a new property, and applicants must have a household income of less than £80,000, or £90,000 when buying in London.
The scheme aims to assist people in getting onto the housing ladder in their local area, so eligibility criteria are set by the local authority and may vary across regions, often prioritising key workers.
If you dream of building your own property, the Help to Build scheme assists self- and custom builders in getting onto the housing ladder through lower deposit mortgages. When the build is finished, a government-backed loan becomes available to support your finances.
Furthermore, the Rent to Buy scheme allows you to rent a new-build home with the explicit aim of purchasing it later, providing a practical step for those needing time to build their financial resources.
Additional support for specific buyers
If you currently reside in a council house or flat, you might be eligible to purchase your home at a considerable discount under the Right to Buy scheme. The specific discount you get depends largely on your location, how long you’ve been a public tenant, and whether you live in a house or a flat. Similar beneficial property schemes are also available and active across Wales, Scotland, and Northern Ireland.
Furthermore, Home Ownership for people with long-term Disabilities is a specially tailored option that helps individuals with long-term disabilities buy a home through a shared ownership scheme. Navigating these various options can seem daunting at first, but understanding your choices is the vital first step.
Seeking professional mortgage advice will help you determine which government scheme best matches your personal financial circumstances and homeownership objectives.
