First time buyer schemes UK: Which one is right for you?
Find out the schemes that can help you get a foot on the ladder, and how they work.
Last updated on
Sep 17, 2026 13:02
There are several schemes in the UK that help first-time buyers to own a home - whether that’s a discount, a savings boost or a mortgage with a small deposit. The main ones are the lifetime ISA, the First Homes scheme, shared ownership and the mortgage guarantee scheme, called Freedom to Buy.
The first-time buyers schemes that will suit you depend on where you’re buying, your deposit and your income. This guide lists the current schemes and who they’re for, and shows you where to find out more in our full guide to each one. We also have a full guide to first-time buyer mortgages.
Habito by Monzo is authorised and regulated by the Financial Conduct Authority (FRN 714187). Your home may be repossessed if you do not keep up repayments on your mortgage. This article is for general information only and isn't personal financial advice.
First-time buyer schemes are government-supported help and some industry or developer schemes that make it a bit easier to get your first home. They recognise that as a first-time buyer, you’re likely to be on a tight budget so they make buying a home a bit more affordable, with low-deposit lending, a discount on the price, shared ownership or a government boost to your savings.
Schemes vary across nations – England, Scotland, Wales and Northern Ireland – and by income and type of property.
There are broadly three types, which are a mix of government schemes for first-time buyers and other schemes.
First up are mortgages for people who have a small deposit – even just 5%. This includes the government’s mortgage guarantee, and 95% mortgages.
Second, there are discounts and buy-a-share schemes, such as First Homes and shared ownership, where you share in the equity of the property, meaning you own just a part of it.
Third, there’s a savings boost to bump up your deposit, via the lifetime ISA.
Note: table correct as at September 2026
There was another type of ISA called a help to buy ISA, but this scheme is closed to new accounts. Existing accounts can be used for a first home until December 2030.
The Help to Buy equity loan scheme stopped in England in 2023 and Scotland in 2021. In Wales, it remained open until September 2026.
This is England-only. First-time buyers can get a discount on the market value of certain new build homes, of 30% to 50%. This % discount gets passed on to future buyers, but the discount is on the new market value at the time you sell. To be eligible, your household income must be no more than £80,000 a year before tax (£90,000 in London). It’s a government scheme and local councils can set eligibility criteria – for example to prioritise key workers.
Find out more in our full guide to First Homes.
With shared ownership, you buy a “starter share” – commonly 10% to 75% – of a property and pay rent on the rest to a housing association. Your deposit amount is lower because it applies only to the share you’re buying. You’ll usually pay rent on the share you don’t own, as well as service charges, so make sure you factor these ongoing costs into your budget.
The idea is that over time, you buy more and increase your share until you own the property. This process is called “staircasing”. Leaseholds usually come with a service charge. To be eligible, your household income can’t exceed £80,000 (£90,000 in London), as with First Homes.
There’s more in our full guide to shared ownership.
The permanent Mortgage Guarantee Scheme was introduced in July 2025 and is commonly referred to as Freedom to Buy. You don’t apply to the scheme, but you apply for a 90%-95% mortgage and the government’s guarantee to the lender works in the background. The aim is to encourage more lenders to offer these high loan-to-value (low-deposit) mortgages where you’re borrowing nearly the whole cost of the property. Some lenders cap the value of the property you can buy. Having a small deposit means the lender’s taking on more risk, which usually means higher interest rates.
Find out more about low-deposit mortgages in our full guide.
You can save up to £4,000 a year into a lifetime ISA to use towards your first home deposit. The government adds a 25% bonus to your savings of up to £1,000 a year - yay! But there are hefty penalties for withdrawing the money if you’re not spending it on your first home (unless you’re aged 60+). You must be aged 18-39 when you open the account and your property must cost no more than £450,000. You’ll also need to have made your first payment into the LISA at least 12 months before using it to buy your first home.
See our full guide to LISA rules for more.
Not every first-time buyer scheme is a government initiative. Deposit Unlock is an industry-backed scheme to help you buy a new build using a 5% deposit. Developers and lenders also run their own schemes offering 5% deposit deals.
A broker can help you find schemes and deals that apply to you.
If you’re in England and rent your place from the council or a housing association, you may be eligible to buy your home at a discount. The size of the discount depends on the location and the property. In Northern Ireland, there’s a similar scheme for Housing Executive tenants. Wales and Scotland don’t have these schemes any more.
Find out more about Right to Buy in our guide.
England. Right to Buy; shared ownership; First Homes; LISA; mortgage guarantee
Scotland. Shared ownership through New Supply Shared Equity and Open Market Shared Equity (you buy a share of at least 60% of a new build or an existing property); LISA; mortgage guarantee.
Wales. Homebuy - Wales equity loans (in some areas); Shared Ownership - Wales (annual income must be £60,000 or less); LISA; mortgage guarantee
Northern Ireland. Right to Buy for certain Housing Executive tenants; shared ownership through Co-Ownership; LISA, mortgage guarantee
Search for schemes near you online as they vary from one area to another.
Small deposit? If you have 5%-10% explore 95% mortgage options, or Deposit Unlock for a new build.
Can’t afford a whole property? Consider shared ownership schemes, which vary by location.
Interested in a new build in England and on a low income? Check out the First Homes scheme.
Got a bit of time to save up for your deposit, and aged 39 or less? Look at the lifetime ISA
Renting from the council or a housing association? Consider your right to buy.
Once you’ve picked out schemes that might work for you, your next step is to see what mortgage might work with them. You could explore mortgage deals out there, think about the deposit you’ll need, and chat with a mortgage expert.
To explore your options, you could start by having a chat with one of our friendly mortgage experts for free. They can help you see what deals you could be eligible for.
Options available to you will depend on lender criteria, affordability and your personal circumstances.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Habito by Monzo is a mortgage broker, not a lender. We’re authorised and regulated by the Financial Conduct Authority (FRN 714187). This content is intended for general guidance and is not a substitute for personalised mortgage advice.
There’s no single first-time buyer scheme but a range of support for those looking to get on the property ladder. This includes First Homes for new build buyers, the shared ownership and mortgage guarantee schemes for those struggling to get a deposit together, the lifetime ISA to boost deposit savings, and regional schemes.
When we researched this guide in summer 2026, shared ownership schemes, the mortgage guarantee scheme (Freedom to Buy) the lifetime ISA and certain schemes only available in specific nations, such as First Homes in England, were open.
It depends on the scheme. With some, you apply directly – with First Homes, contact the developer or estate agent selling. Other schemes, like the mortgage guarantee, work in the background. Banks and other providers offer lifetime ISAs and you apply to them to open an account. A broker can help you find a mortgage that fits with your plans.
Many mortgage options for first-time buyers require a deposit, although the amount you’ll need depends on the mortgage, scheme and your circumstances. Some mortgages are available with a 5% deposit, while other schemes work differently.. Find out more about deposits in our full guide.
The scheme that works best for you will largely depend on your deposit size, your income, where you live and whether you’re buying a new build. If you have time to build up your deposit, you could explore whether a lifetime ISA might be suitable for you. It offers a government bonus, but eligibility, property value and withdrawal rules apply.. You can find out more about first-time buyer mortgages in our guide.
This article is based on guidance from organisations such as MoneyHelper, Citizens Advice and GOV.UK. Mortgage rules and legal processes can change, so it's worth checking the latest information or speaking to a qualified adviser.
Information is correct at the time of writing and may change. Always check the latest eligibility criteria, terms and conditions before applying for a mortgage or using a scheme.
This article is for general information only and isn't personal financial advice.
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