CustomersInsuranceBlog
Clearview Mortgage Solutions logo
Guide

Government schemes for first-time buyers

Several government-backed and government-supported schemes exist to help first-time buyers get onto the property ladder. This guide covers every current option, how they work, and which one might suit your situation.

In this guide

What schemes are currently available for first-time buyers?

The UK government and devolved administrations run several programmes designed to make homeownership more accessible. Some reduce the amount you need to save, others subsidise the purchase price, and a few offer financial bonuses to boost your deposit.

The schemes available to you depend on where you’re buying, the property price, and your personal circumstances. Here’s a detailed look at each one.

Shared Ownership: buy a share, pay rent on the rest

  • Buy between 25% and 75% of the property’s value
  • Pay a reduced rent on the remaining share (typically 2.75% of the housing association’s share)
  • Your deposit is based only on your share — e.g. 5% of a 40% share
  • Available on new-build and some resale properties through housing associations

First Homes scheme: discounted new builds in England

30–50%

Discount off market value

Set by the local authority — at least 30%

£250,000

Price cap (after discount)

Outside London

£420,000

Price cap in London

Higher cap reflects London house prices

To qualify, you must be a first-time buyer aged 18 or over, with a household income of £80,000 or less (£90,000 in London). Local councils may add extra eligibility criteria, such as prioritising key workers or people with a local connection.

Lifetime ISA: a government bonus on your savings

How the LISA works
  • Save up to £4,000 per tax year
  • Government adds 25% bonus (max £1,000/year)
  • Must be aged 18–39 to open (can contribute until 50)
  • Available as cash LISA or stocks & shares LISA
Using it for a property
  • Property must cost £450,000 or less
  • Must be your first home
  • Must be purchased with a mortgage (not cash)
  • Account must be open for at least 12 months before withdrawal
Important restrictions
  • Withdrawing for any other purpose incurs a 25% penalty (you lose the bonus plus some of your own savings)
  • Can’t be used alongside Help to Buy ISA bonus on the same property
  • The 12-month minimum means you need to plan ahead

Mortgage Guarantee Scheme: 5% deposit mortgages

The Mortgage Guarantee Scheme encourages lenders to offer 95% LTV mortgages by having the government guarantee a portion of the loan. This means you can buy with just a 5% deposit through participating lenders.

You don’t apply to the scheme directly — you simply apply for a 95% LTV mortgage with a participating lender. The government guarantee operates in the background. The scheme is available on properties worth up to £600,000 and is open to both first-time buyers and home movers.

Help to Buy equity loan: now closed to new applicants

Right to Buy: for council tenants

£102,400

Max discount (house)

Outside London — higher in London at £136,400

3–5 years

Minimum tenancy

How long you must have been a tenant to qualify

35–70%

Typical discount

Depends on property type and length of tenancy

The discount increases with the length of your tenancy. If you sell the property within five years, you may have to repay some or all of the discount. A specialist broker can help you finance a Right to Buy purchase.

Shared Ownership vs First Homes: which is right for you?

Shared Ownership

  • Buy 25–75% of the property
  • Pay rent on the share you don’t own
  • Can staircase to 100% ownership over time
  • Available nationwide through housing associations
  • Resale properties available alongside new-builds
  • Income cap: £80,000

First Homes

  • Buy 100% of the property at a discount
  • No rent to pay — you own outright
  • Discount stays with the property permanently
  • England only, new-builds only
  • Price cap after discount: £250k (£420k London)
  • Income cap: £80,000 (£90,000 London)

Regional schemes: Scotland, Wales, and Northern Ireland

The devolved nations run their own homebuying schemes with different eligibility rules.

Scotland offers the First Home Fund (helping with up to £25,000 towards your purchase as a shared equity loan), LIFT (Low-cost Initiative for First Time buyers) schemes, and the Help to Buy (Scotland) small developer scheme. Wales has Help to Buy – Wales, offering a shared equity loan of up to 20% for new-build properties priced up to £300,000. Northern Ireland has the Co-Ownership scheme, similar to England’s Shared Ownership.

Eligibility and availability change over time, so always check the latest details on the relevant government website or speak to a broker who covers your region.

Which scheme is right for you?

The right scheme depends on where you’re buying, your savings, your income, and the type of property you want. A mortgage broker can assess your eligibility across all available schemes and recommend the best route to homeownership for your situation.

At Clearview Mortgage Solutions, we help first-time buyers across the UK navigate these schemes every day. Contact us for a free, no-obligation chat about which options are available to you.

Get a mortgage quoteBack to First-Time Buyer Mortgages

Related guides

More guides in our first-time buyer mortgage hub.

Speak to an Expert

Our calculators give you a useful estimate, but your actual mortgage and protection options depend on your full circumstances, credit history and lender criteria. Clearview Mortgage Solutions’ FCA regulated—our CeMAP-qualified advisers are on hand to explain how each calculator applies to you and to help you compare real mortgage quotes from 90+ UK lenders.

89%

Get the right mortgage first time

90+ UK lenders · 10,000+ products

Speak to a mortgage adviser today

FCA-authorised, CeMAP-qualified. Free, no-obligation consultation.

Instant comparison from 90+ lenders. No obligation.