First time buyer schemes: Options that could help you get on the property ladder

The journey to homeownership can be challenging for first-time buyers in the UK for many reasons, but there are several financial schemes designed to make purchasing a home more attainable.

Government schemes for first time buyers

The UK government offers a range of initiatives aimed to make homeownership more accessible by reducing deposit requirements, offering financial assistance, or providing more affordable mortgage options. Whether you need help saving for a deposit, securing a lower interest rate, or accessing a mortgage with a smaller deposit, there are various options available to suit different financial situations.

First Homes Scheme

The First Homes Scheme offers first-time buyers in England the opportunity to purchase new-build homes at a discount ranging from 30% to 50% off the market value. This initiative aims to help local first-time buyers afford homes in their communities.

Eligibility: First-time buyers with an annual household income below £80,000 (£90,000 in London). The property must be your primary residence and priced no more than £250,000 after the discount (£420,000 in London). A mortgage must cover at least 50% of the purchase price.

Ideal for: Individuals looking to buy in their local area who might be priced out of the market, including key workers and those with moderate incomes.

Shared Ownership

Shared Ownership allows buyers to purchase a share of a property—typically between 25% and 75%—and pay rent on the remaining portion. Over time, owners can buy additional shares, a process known as "staircasing," potentially up to full ownership.

Eligibility: First-time buyers or people who used to own a home but cannot afford one now. The household income must be £80,000 or less (£90,000 or less in London).

Ideal for: Buyers who can’t afford a full mortgage on a home but can manage a combination of mortgage and rent payments.

Mortgage Guarantee Scheme

Extended until June 2025, the Mortgage Guarantee Scheme encourages lenders to offer 95% loan-to-value mortgages. This means buyers can secure a home with just a 5% deposit.

Eligibility: Available to both first-time buyers and home movers across the UK purchasing properties up to £600,000. The property must be your primary residence, and the mortgage should be on a repayment basis.

Ideal for: Those with a steady income who can afford mortgage repayments but have struggled to save a large deposit.

Lifetime Individual Savings Account (LISA)

A LISA allows individuals aged 18 to 39 to save up to £4,000 annually towards their first home or retirement. The government adds a 25% bonus to your savings, up to a maximum of £1,000 per year.

Eligibility: UK residents aged 18 to 39. Funds can be used to purchase a first home valued up to £450,000, provided the account has been open for at least 12 months.

Ideal for: Individuals planning ahead and looking to boost their savings with government contributions.

Help to Build

This scheme is not specifically for first-time buyers but supports those wishing to build their own homes by providing an equity loan based on the estimated costs to buy a plot of land and build the property.

Eligibility: Applicants must have a self-build mortgage and meet certain financial criteria. The estimated costs of purchasing the land and building costs cannot exceed £600,000 (£400,000 if you already own the land).

Ideal for: Individuals interested in custom-building their home but lacking sufficient upfront funds.

Rent to Buy

Rent to Buy offers reduced rent on new-build homes, allowing tenants to save for a deposit to purchase the property in the future.

Eligibility: Varies by provider, but generally aimed at first-time buyers who can afford mortgage payments but need time to save for a deposit.

Ideal for: First time buyers in employment who are currently unable to buy due to insufficient savings but who have a plan to purchase in the near future.

Who else can help?

Lenders

In addition to government-backed initiatives, many lenders offer their own schemes tailored to first-time buyers. For example, Nationwide’s Helping Hand allows eligible buyers to borrow more than standard affordability calculations would typically permit, making it more accessible to get onto the property ladder. Halifax’s First-Time Buyer Boost enables a similar type of offering.

Joint borrower and sole proprietor mortgages can also be obtained through many mortgage lenders such as Skipton, Barclays and Accord. This allows for a family member or friend to go onto a mortgage to increase the buyer’s purchasing ability. Whilst these products aren’t always exclusive for first-time buyers, they do provide a great opportunity for first time buyers to still benefit from government incentives such as stamp duty relief.

Meanwhile, Skipton’s Track Record Mortgage is designed for renters who have demonstrated a history of making rental payments on time but may struggle to save for a deposit—allowing them to secure a mortgage without one.

Mortgage brokers

Beyond these well-known lender schemes, there are also exclusive products available only through mortgage brokers, which can provide even more flexible lending criteria or enhanced affordability options. Speaking with an experienced broker ensures you have access to the full range of deals, including those not available directly to consumers.

Each scheme has specific criteria and benefits tailored to different circumstances. It's essential to assess your financial situation, long-term plans and local property market to determine which scheme aligns best with your needs.

Ready to get started? Book your initial appointment for personalised guidance to help you make an informed decision and get you on the property ladder.