First-time buyer schemes explained: What help is available

Getting on the property ladder for the first time involves one of the largest financial commitments most people will make. To help buyers manage the upfront cost of a deposit and access the mortgage market, the government operates several schemes in England. Each works differently, addresses a different part of the affordability challenge, and comes with its own eligibility requirements. Understanding what is available before you begin searching helps you identify which scheme, if any, is suited to your circumstances.

Shared ownership

Shared ownership allows you to buy a portion of a property, initially between ten per cent and seventy-five per cent, and pay rent on the share you do not own. Your mortgage covers the cost of your purchased share, which makes the deposit and monthly payments lower than purchasing outright. Over time, you can buy additional shares in a process called staircasing, eventually owning the property in full if you choose.

Shared ownership is available through housing associations on both new-build and resale shared ownership properties. Zoopla's first-time buyer schemes guide notes that eligibility is subject to an income cap of £80,000 per year or £90,000 in London. Monthly costs include your mortgage, rent on the unowned share, and service charges. It is important to calculate the combined monthly outgoings carefully before committing, as the total can be higher than it appears from the mortgage payment alone.

First Homes

The First Homes scheme allows eligible first-time buyers to purchase a new-build property in England at a discount of between thirty and fifty per cent of market value. The discount is permanent and is passed on to the next buyer when you sell, which means the property remains discounted for future purchasers.

According to Rightmove's guide to first-time buyer schemes, the purchased price after discount must not exceed £250,000, or £420,000 in London. Household income must be below £80,000 per year, or £90,000 in London. Some areas prioritise key workers or those with a local connection. Availability varies by area, as the scheme requires local councils to adopt it within their planning requirements.

Mortgage Guarantee Scheme

The Mortgage Guarantee Scheme, made permanent in July 2025 and sometimes referred to as Freedom to Buy, is a government guarantee provided to participating mortgage lenders that encourages them to offer ninety-five per cent loan-to-value mortgages. This allows buyers to purchase with a deposit of five per cent on properties costing up to £600,000.

The scheme is available to both first-time buyers and home movers, and does not require a separate application. If your lender participates, the guarantee operates automatically in the background. Rightmove's scheme guide notes that many lenders already offer ninety-five per cent mortgages independently, so the scheme does not always change which products are available, but it supports the availability of low-deposit lending more broadly.

Lifetime ISA

The Lifetime ISA is a savings account available to buyers who open it before the age of forty. The government adds a twenty-five per cent bonus to contributions of up to £4,000 per year, producing a maximum bonus of £1,000 per year. The saved funds, including the bonus, can be used toward the purchase of a first home costing no more than £450,000, provided the account has been held for at least twelve months. A withdrawal penalty applies if the funds are used for any other purpose before the age of sixty.

The Lifetime ISA works alongside other schemes and can be used in combination with Shared Ownership or the Mortgage Guarantee Scheme where eligibility allows.

Checking current availability

Scheme rules and eligibility thresholds can change. Rightmove and Zoopla both maintain updated guides to first-time buyer schemes, and the government's own website at gov.uk provides the definitive current eligibility conditions for each.

Talk to our team about buying your first home