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.
First Homes scheme: discounted new builds in England
First Homes is an England-only scheme offering new-build properties at a discount of at least 30% (sometimes up to 50%) from the market price. The discount is passed on to future buyers, keeping the homes affordable in perpetuity.
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
The Lifetime ISA (LISA) lets you save up to £4,000 per year towards your first home, with the government adding a 25% bonus — up to £1,000 free per year. It’s one of the most straightforward ways to boost your deposit.
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
Open one now, even with £1
The 12-month clock starts when you open the account, not when you start saving. If you think you might buy in the next few years, open a LISA now with a minimal deposit to start the timer.
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
The Help to Buy equity loan scheme closed to new applications in October 2022, and the final completions ended in March 2023. If you already have a Help to Buy equity loan, you’ll need to manage it according to the scheme’s terms.
Already have a Help to Buy loan?
The equity loan is interest-free for the first five years. After that, you’ll start paying interest at 1.75%, rising annually by RPI plus 1%. Many Help to Buy borrowers are now looking to remortgage to repay the loan and avoid escalating fees. A broker can help you explore your options.
Right to Buy: for council tenants
If you’re a council tenant in England, you may be able to buy your home at a discount through the Right to Buy scheme. Housing association tenants may qualify for a similar scheme called Right to Acquire.
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.
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.