If you’ve never owned a home before (anywhere in the world), you’re officially a first-time buyer. While the housing market can feel unpredictable, in 2026, there are several government schemes designed to help you get on the property ladder.

We help you figure out which government first-time buyer mortgage scheme fits your salary and deposit level. If you want expert guidance tailored to your circumstances, you can speak to a Habito mortgage broker and get help navigating these schemes.

Habito 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.

Overview of first-time buyer help in 2026

The government currently supports first-time buyers through deposit boosts, discounted purchase prices, and lender guarantees. While older programmes like Help to Buy Equity Loan have ended in England, support continues in other parts of the UK. The current options offer targeted help depending on your savings, location, and where in the UK you live.

Important: the schemes available to you depend on where in the UK you’re buying. Housing policy is devolved, so England, Wales, Scotland, and Northern Ireland each operate their own programmes. The main schemes below reflect what is available in England unless stated otherwise.

Government schemes, lender participation, eligibility criteria, and tax thresholds can change over time. Always check the latest guidance or speak to a qualified mortgage adviser before making financial decisions.

Here are the main first-time buyer schemes available in England in 2026:

• The First Homes scheme: Offers discounts on new-build properties.
• The Mortgage Guarantee scheme: Helps you buy a home with just a 5% deposit.
• The Lifetime ISA (LISA): Gives you a free 25% government bonus on your deposit savings.

Exploring these options can help you stretch your budget further. You can also see all the benefits available to first-time home buyers to understand how much you could save.

How do government schemes differ across the UK?

Here is a quick overview of how support varies by nation. Each has its own eligibility rules, so always check the official government source for your area.

The First Homes Scheme: 30% to 50% discounts

The First Homes scheme is available in England only. It lets eligible buyers purchase a new-build property at a 30% to 50% discount on its market value. This can reduce the amount you need to borrow and may lower monthly payments.

To qualify, you usually need a strong local connection to the area, or you may be prioritised if you are a key worker. Not all applicants will qualify, as local authority rules and income limits apply. The property price cannot exceed £250,000 outside London or £420,000 in London after the discount.

The discount stays with the property. So when you sell, you’ll need to pass on the same percentage discount to the next eligible first-time buyer. 

You can use a mortgage calculator to see exactly how a 30% price drop lowers your monthly payments.

The First Homes scheme does not apply in Wales, Scotland, or Northern Ireland. If you’re buying in Wales, Help to Buy – Wales may offer a similar route via a shared equity loan on new-builds. Scottish buyers should look at the LIFT scheme.

How do I know if I qualify as a first-time buyer in the UK?

You qualify as a first-time buyer if your combined household income is under £80,000 (or £90,000 in London) and you’ve never owned a home before. This rule is strict, and previous homeowners usually won’t qualify.

Local councils often prioritise key workers, such as nurses and teachers, or people who already live and work in the area. You can learn more about the exact rules in our guide on what a first-time buyer programme is.

What other options do I have if I can't afford to buy outright?

If you can’t afford to buy outright, your main options are shared ownership and low-deposit mortgages. The standard route of saving a 20% deposit is not the only way to become a homeowner.

Shared ownership mortgages

Shared ownership is a ‘part-buy, part-rent’ model designed for buyers with very small deposits and lower household incomes. You buy a share of the property (usually between 10% and 75%) and pay a subsidized rent to a housing association for the rest.

This can make it easier for some buyers to access a mortgage because you only need to borrow enough to cover your share. You can read our full breakdown of shared ownership mortgages to see how eligibility works in 2026.

Over time, you may be able to increase your share in the property, a process often called ‘staircasing’, until you own more or all of the home.

Shared ownership operates in England, Wales, and Northern Ireland, though eligibility rules and housing associations differ. In Scotland, shared equity schemes are administered differently. Speak to a Scottish broker or visit mygov.scot for local options.

The Mortgage Guarantee Scheme (95% mortgages)

The Mortgage Guarantee scheme works by having the government protect the lender against financial loss, which encourages more 5% deposit deals. It reduces lender risk, making it easier to offer 95% mortgages, so you can buy with just a 5% deposit.

It is typically available on properties up to £600,000 and must be your main residence, not a buy-to-let or second home.

This scheme applies to both brand-new builds and existing ‘second-hand’ properties, giving you more flexibility over what you buy.

• Pros: You buy the property outright with no ‘part-rent’ strings attached rather than using a shared ownership structure.
• Cons: You will generally face higher interest rates compared to buyers with a 10% or 15% deposit.

Not all lenders offer the same deals under this scheme, and the criteria can vary depending on your income, credit history, and the property you’re buying. You can check the official details of the scheme on the government website for the latest eligibility and lender support.

If you only have a small deposit, you can read more about 5% deposit mortgages or compare 95% loan-to-value (LTV)  (the percentage of your property’s value that you borrow) mortgage rates to see what’s currently available.

The Mortgage Guarantee Scheme is a UK-wide scheme, so it is also available in Wales, Scotland, and Northern Ireland, subject to lender participation. Check with your broker to confirm which lenders are participating in your area.

The Lifetime ISA (LISA) and its 25% government bonus

A Lifetime ISA (LISA) is a tax-free savings account that gives you a 25% government bonus on your deposit savings. You can save up to £4,000 every tax year, meaning the government will add up to £1,000 to your savings each year.

To use the bonus for your deposit, you must be buying a home priced at £450,000 or less in 2026. You also must have the account open for at least 12 months before you can use the money to buy a house, so it’s worth opening one early.

If you withdraw money for any other reason, a government fee applies, which can reduce your overall savings.

The LISA is available to eligible buyers across England, Wales, Scotland, and Northern Ireland. However, the property price cap (£450,000) applies UK-wide, so in areas with lower average house prices (much of Scotland, Wales, and Northern Ireland), it is broadly usable. Always confirm current rules with your provider.

Stamp Duty Land Tax (SDLT) government initiative

Current Stamp Duty Land Tax (SDLT) rules mean first-time buyers pay £0 in tax on the first £300,000 of their property purchase. This can reduce the upfront costs of buying a home that you can put toward your deposit or moving costs.

However, if you buy a home priced over £500,000, you lose this first-time buyer tax relief entirely and must pay standard rates.

If you’re a first-time buyer purchasing a property for £500,000, your SDLT would be calculated as:

• 0% on the first £300,000 = £0
• 5% on the remaining £200,000 = £10,000
• Total SDLT owed = £10,000

You can check the latest thresholds and rates on the official Stamp Duty Land Tax guide.

Property transaction taxes differ by nation

Stamp Duty Land Tax (SDLT) only applies in England and Northern Ireland. Scotland uses Land and Buildings Transaction Tax (LBTT), and Wales uses Land Transaction Tax (LTT). Each has its own rates and first-time buyer reliefs.

Wales (Land Transaction Tax — LTT)

Wales has its own property transaction tax (LTT) with different rates and thresholds from England. Wales does not currently offer a separate first-time buyer relief in the same way as England, although many buyers pay no LTT on properties up to £225,000.

Scotland (Land and Buildings Transaction Tax — LBTT)

Scotland charges LBTT instead of SDLT. First-time buyers in Scotland benefit from the First-Time Buyer Relief, which increases the zero-rate threshold above the standard starting point. This means Scottish first-time buyers can purchase at a higher price before tax kicks in compared to non-first-time buyers, though the exact threshold differs from England’s SDLT relief.

Northern Ireland (Stamp Duty Land Tax — SDLT)

Northern Ireland also uses SDLT (the same tax as England), and first-time buyer SDLT relief applies on the same basis as in England. The £300,000 zero-rate threshold and £500,000 upper limit for first-time buyer relief therefore apply in Northern Ireland too.

How do all these schemes compare?

The best first-time buyer scheme depends entirely on your location, income, and long-term saving strategy. The table below reflects schemes available primarily in England. If you’re buying in Wales, Scotland, or Northern Ireland, some rows may differ. Speak to a broker who knows your local market.

How to apply: A step-by-step roadmap

To apply for a government scheme, you’ll need to save your deposit, secure a Mortgage in Principle, and find a conveyancer. The process can feel overwhelming, but following a clear set of steps helps.

Here is the step-by-step journey for a first-time buyer:

1. Save your deposit: Use a LISA to boost your savings faster.
2. Speak to a broker: An online broker like Habito can match you with lenders who support specific schemes.
3. Get a Mortgage in Principle: This shows sellers that a lender may be willing to lend to you based on your current circumstances.
4. Find your home: Make an offer on a qualifying property.
5. Hire a conveyancer: They handle the complex legal work required to finalise the scheme.

A mortgage broker can guide you through the process and help you avoid applying for schemes you may not qualify for. Chat with a Habito expert today to understand what options are realistic for you.

Your home may be repossessed if you do not keep up repayments on your mortgage.

What are the technical requirements to qualify?

To qualify technically for a mortgage under these schemes, some lenders may use income multiples, often around 4.5 to 5 times your annual income, as part of their affordability assessment. This can give a rough estimate of how much you may be able to borrow, although the exact amount will depend on your income, outgoings, credit history, deposit size, and lender criteria.

Lenders also carry out affordability checks and stress test your finances to make sure you could still afford repayments if interest rates rise. If you choose a variable or tracker mortgage, your monthly repayments could go up as well as down if interest rates change.

Some general financial guidelines, such as the 5/20/30/40 rule, are sometimes used to estimate affordability, but UK lenders don’t follow a fixed formula like this. Instead, they assess your income, outgoings, credit history, and ability to afford repayments under different scenarios.

They also look at your LTV ratio and whether you choose a fixed-rate or variable mortgage, as these affect your risk profile and monthly payments, along with your credit history and current interest rates.

Here is a quick look at how salary limits your borrowing power:

• £30k salary: up to around £135,000
• £50k salary: up to around £225,000
• £70k salary: up to around £315,000

If you want to see your specific numbers, our mortgage calculator lets you run your own calculations.

These figures are illustrative examples only and are not guaranteed borrowing amounts. The amount you may be able to borrow depends on factors including your income, regular spending, credit history, deposit size, and lender affordability checks.

Common pitfalls and "red flags" for new buyers

One of the biggest slip-ups for first-time buyers is taking out a new credit card or loan just before you apply for a mortgage. Lenders scrutinise your recent credit history, and new debt can make you look like a risky borrower.

You must also watch out for hidden costs like survey fees, solicitor bills, and moving van expenses. Always keep an extra cash buffer so these costs don’t eat into your deposit.

And if a property seems too good to be true, it probably is. Homes with very short leases or serious structural defects can be red flags, and some lenders may be less willing to offer a mortgage on these properties.

This article is for general information only and does not constitute financial, mortgage, or tax advice. Mortgage eligibility and suitability depend on your personal circumstances and lender criteria.

Frequently asked questions

Will the government help me buy my first house in 2026?

Yes, government support exists across the UK, though the specific schemes depend on where you’re buying. In England, support comes through three main pillars: deposit boosts (LISA), price discounts (First Homes), and lending security (Mortgage Guarantee). 

Help to Buy Equity Loan closed to new applicants in England in 2023, although Help to Buy Wales remains available for some eligible new-build purchases, subject to funding and criteria. In Scotland, the LIFT scheme and LBTT first-time buyer relief apply. In Northern Ireland, Co-Ownership and SDLT first-time buyer relief are available.

While the government does not hand out free cash for a house, they provide structured support to make borrowing easier and more affordable. 

Your home may be repossessed if you do not keep up repayments on your mortgage.

If you want to know which pillar fits you best, chat with a Habito expert to explore your options.

What is the £5,000 deposit mortgage scheme?

The £5,000 deposit mortgage scheme refers to specific 99% mortgage products aimed at helping trapped renters transition into buyers. While not an official government scheme, these products work alongside the government's push to support high LTV lending.

These products are not suitable for everyone and are typically subject to stricter lending criteria, affordability checks, and higher interest rates than lower loan-to-value mortgages.

Do first-time buyers pay Stamp Duty in 2026?

It depends on where you’re buying. In England and Northern Ireland, first-time buyers don’t pay any SDLT on the first £300,000 of a property purchase. If the property price exceeds £500,000, the first-time buyer relief no longer applies. Previous temporary government changes increased this threshold to £425,000, but the current relief typically applies up to £300,000.

In Scotland, LBTT first-time buyer relief raises the zero-rate threshold, but the figures differ from England. In Wales, LTT applies with its own rates. Rules can change in each nation independently, so it’s worth checking the latest rates for your specific location before buying.

What are the negatives of the First Homes scheme?

The biggest negative of the First Homes scheme is the strict resale restriction attached to the property forever. When you eventually decide to sell, you must sell the home at the exact same percentage discount to another eligible first-time buyer, limiting your potential profit.

Because the First Homes scheme is limited to specific new-build plots in England, you also have significantly less choice when it comes to location and property style. The scheme does not exist in Wales, Scotland, or Northern Ireland.

Can I get a 100% mortgage in 2026?

Yes, some lenders offer 100% mortgage products in certain circumstances, including Rent-to-Mortgage products designed for renters with no deposit. You will usually need a strong history of paying your rent on time for at least 12 to 18 months to qualify.

Keep in mind that Borrowing with a very small deposit — or no deposit at all — can mean higher interest rates, stricter affordability checks, and larger monthly repayments. It may also increase the risk of negative equity if property prices fall.

Your home may be repossessed if you do not keep up repayments on your mortgage.