Government schemes for first-time buyers

Government schemes for first-time buyers: what’s available?

For many first-time buyers, one of the biggest hurdles is getting together a deposit while also finding a mortgage that fits your income and outgoings. Alongside mainstream lenders, there are a number of government-backed (or government-supported) schemes designed to make buying a home more achievable.

This guide brings together the main options you’re likely to hear about, explains how they generally work, and highlights practical points to consider before you decide which route is best for you.

Lifetime ISA (LISA)

A Lifetime ISA is a savings account that can help you build a deposit for your first home, with a government bonus added to what you save.

How it helps (typical structure):

• You can contribute up to £4,000 per tax year.
• The government adds a 25% bonus (up to £1,000 per year).

Common practical points:

• It’s aimed at people saving for their first home.
• The property purchase must meet the scheme’s rules (including a property value limit).
• You generally need to use the funds for a qualifying purpose to avoid charges.

A LISA can be particularly useful if you’re disciplined about saving and want a clear, deposit-focused way to build funds over time.

Shared Ownership

Shared Ownership is designed for buyers who may be able to afford a mortgage for part of a home, but not the full purchase price straight away.

How it works:

• You buy a share of the property.
• You take out a mortgage for that share.
• You pay rent on the remaining share.
• Over time, you may be able to increase your ownership through staircasing.

What to consider:

• Shared Ownership homes are often leasehold, so it’s important to understand the lease terms and long-term costs.
• Your monthly budget needs to include both mortgage payments and rent.
• The ability to staircase and the cost of doing so can affect your long-term plan.

Mortgage Guarantee Scheme (high LTV)

The Mortgage Guarantee Scheme is intended to encourage higher loan-to-value (LTV) lending. In practical terms, it can help some buyers access mortgages with a smaller deposit than would otherwise be available.

How it helps:

• It supports lenders to offer mortgages at higher LTV levels.
• This can reduce the deposit needed for an eligible mortgage product.

Important practical points:

• Even with a government-backed guarantee, lenders still assess affordability and suitability.
• The scheme is tied to specific mortgage products and property/value limits.
• Your mortgage type (for example, repayment vs interest-only) may be restricted under the scheme.

This route can be useful if you’re close to buying but your deposit is the main constraint.

First Homes scheme (new-build discounts)

First Homes is aimed at helping first-time buyers access new-build homes at a discount.

How it works:

• Homes are sold at a discount from market value.
• The discount level is set through the scheme framework and can vary.

What to consider:

• Availability depends on specific developments and local delivery.
• Eligibility can include conditions around who can buy (for example, local first-time buyers and/or key workers) and income caps.
• Because it’s linked to particular homes, you may need to search based on what’s available in your area.

Rent to Buy (and London Living Rent)

Rent to Buy-style schemes are designed to help people build savings while living in a home, with the intention of moving towards ownership later.

How it generally works:

• You rent a property at a reduced rate for a set period.
• The reduced rent is intended to help you save towards a deposit.

What to consider:

• These schemes are often administered locally, so the exact terms can vary.
• London Living Rent is a related concept with its own rules.

If you’re not ready to buy immediately, these schemes can be a way to reduce housing costs while you plan for a future mortgage.

Right to Buy and Right to Acquire

Right to Buy and Right to Acquire are aimed at tenants of public sector landlords.

Right to Buy (council tenants)

• Typically offers a discount to help eligible council tenants buy the home they live in.
• The scheme is tied to tenancy and property conditions.

Right to Acquire (housing association tenants)

• Offers a discount for eligible tenants of housing associations.
• The discount structure can differ from Right to Buy.

Key practical points:

• A discount on the purchase price doesn’t automatically mean you’ll be approved for a mortgage.
• Eligibility depends on your landlord type, tenancy length, and other conditions.
• The rules can differ across the UK.

Help to Build (self-build support)

Help to Build supports self-build projects, helping eligible buyers obtain finance for building their own home.

How it helps:

• You may be able to access a self-build mortgage through lenders registered with the scheme.

What to consider:

• Self-build projects involve timelines and costs that can differ significantly from buying a completed property.
• There are typically caps and conditions relating to the project and costs.

Help to Buy: what’s changed?

The original Help to Buy scheme for new applicants in England is no longer open.

• New applications: closed for new customers in October 2022.
• Existing customers: the scheme ended for existing customers in March 2023.

If you already have a Help to Buy ISA, there may be remaining timeframes and rules for how it can be used, depending on the product.

Country-specific schemes (UK variations)

Some homeownership support programmes differ depending on where you’re buying.

Wales

• Shared equity-style routes may be available for new-build and/or existing homes, with a mix of deposit funding and government support.

Scotland

• There are shared equity approaches for new supply and, in some cases, open market purchases, typically involving a government funding share.

Practical point: because rules and availability vary by nation, it’s worth checking the current position for your location before planning your purchase.

What to consider when choosing a scheme

Government schemes can change the deposit position and the structure of home ownership, but they don’t remove the need to plan carefully for the overall cost of buying and living in the property.

When comparing options, consider:

• Monthly affordability: mortgage payments plus any rent (where applicable).
• Long-term ownership plan: whether you can increase your share over time, and what that may involve.
• Property type and location limits: many schemes apply only to certain property values, new-build developments, or specific areas.
• Leasehold implications: especially where schemes involve leasehold properties.
• Timing and availability: some schemes are development-specific or administered locally.

How a mortgage broker fits in

A mortgage broker can help you understand how a scheme may interact with mortgage options and lender requirements. Because some schemes involve shared equity, higher LTV lending, or additional costs such as rent, it’s often helpful to think about the scheme and the mortgage together rather than separately.

A broker can also help you compare practical routes that match your budget and timeline, so you can focus on options that are realistic for your circumstances.

Important: scheme rules, eligibility and availability can change. Always check the latest guidance for the specific scheme you’re considering.