First-Time Buyer Mortgage Schemes: What Help Can You Get in the UK

Why First-Time Buyer Schemes Matter

Buying your first home in the UK is exciting but it can also feel financially overwhelming. With property prices rising and affordability stretched saving for a deposit and securing a mortgage can seem out of reach for many aspiring homeowners.

Fortunately the UK offers a range of first-time buyer mortgage schemes and government support options designed to help first-time buyers buy their first property sooner and with less financial pressure.

In this guide we’ll explore all the available schemes eligibility criteria how each one works and tips to decide which is right for you.

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Who Counts as a First-Time Buyer in the UK?

Before diving into the schemes it’s essential to know whether you qualify.

You’re typically considered a first-time buyer if:

• You’ve never owned a property in the UK or abroad.

• You’re purchasing your only or main residence .

• You’re buying a freehold or leasehold property not as a buy-to-let investment.

Even if you’re buying with someone else you both need to meet the first-time buyer criteria to access certain schemes or stamp duty relief .

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1. First Homes Scheme

Launched : 2021
Discount : 30% to 50% off the market value
Target buyers : Key workers local residents and first-time buyers

How It Works

The First Homes Scheme helps local first-time buyers (and key workers such as nurses teachers and police officers) purchase new-build homes at a significant discount. The discount stays with the property meaning future sales must also honour the reduced price.

Key Benefits

• Pay 30%–50% less than market value

• Lower deposit and mortgage required

• You own 100% of the property

Eligibility

• First-time buyer

• Annual household income below £80 000 (£90 000 in London)

• Must use a mortgage for at least 50% of the purchase

• Local connection or key worker status may be required (varies by area)

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2. Shared Ownership Scheme

Also known as : Part-buy part-rent
Deposit needed : 5–10% of your share (not full property value)

How It Works

With Shared Ownership you purchase a share of a property (10–75%) and pay subsidised rent on the remainder to a housing association. Over time you can buy more shares through a process known as “staircasing.”

Key Benefits

• Lower deposit required

• Option to buy more over time

• More affordable entry into homeownership

Eligibility

• First-time buyer OR previously owned but cannot afford to buy now

• Household income under £80 000 (£90 000 in London)

• Property must be your primary residence

Important Considerations

• You’ll still pay service charges and rent

• Some homes are leasehold with restrictions

• Selling your share can take longer

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3. Lifetime ISA (LISA)

Type : Government-backed savings account
Bonus : 25% of your savings up to £1 000/year
Max contribution : £4 000/year

How It Works

A Lifetime ISA is a tax-free savings account designed for first-time buyers under 40 . The government adds a 25% bonus to your savings—so if you save £4 000 they’ll give you £1 000. You can use the funds only for your first home or retirement .

Key Benefits

• Free government money

• Tax-free savings

• Use for house deposit up to £450 000 purchase price

Eligibility

• Aged 18 to 39

• First-time buyer

• Property must cost £450 000 or less

• Must use a mortgage for the purchase

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4. Help to Buy – Wales / Scotland / Northern Ireland

Although Help to Buy: Equity Loan (England) ended in 2023 similar schemes are still available in other UK nations:

Help to Buy – Wales

• Borrow up to 20% of the property value interest-free for 5 years

• Buyer contributes a 5% deposit

• Must be a new-build home (max £300 000)

Help to Buy – Scotland (First Home Fund – closed)

• [Currently paused; replaced by alternative shared equity schemes]

Co-Ownership – Northern Ireland

• Buy a share of the home (50–90%)

• Pay rent on the remaining share

• Option to purchase full ownership later

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5. Mortgage Guarantee Scheme (95% Mortgages)

Launched : 2021 (extended to 2025)
Target : Buyers with 5% deposit
Backed by : UK Government

How It Works

The Mortgage Guarantee Scheme encourages lenders to offer 95% loan-to-value (LTV) mortgages by providing a government-backed guarantee. You only need a 5% deposit making homeownership more accessible to those with limited savings.

Key Benefits

• Access to high-LTV mortgages

• Available on properties up to £600 000

• Open to first-time buyers and home movers

Eligibility

• Property must be your main residence

• New-builds and existing homes both qualify

• Must pass standard lender affordability checks

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6. Stamp Duty Relief for First-Time Buyers

Relief amount : Save up to £6 250
Threshold : Up to £425 000 with full relief

How It Works

First-time buyers in England and Northern Ireland don’t pay stamp duty on the first £425 000 of a home purchase. For homes priced between £425 001 and £625 000 partial relief is applied.

This scheme can free up funds to boost your deposit or cover other buying costs.

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Comparison Table of First-Time Buyer Schemes

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Which First-Time Buyer Scheme Is Best for You?

It depends on your:

• Savings and deposit size

• Location (England Wales Scotland NI)

• Income and credit history

• Property type and price range

A Lifetime ISA is perfect for long-term savers under 40. A 95% mortgage may be best if you're ready to buy now with limited savings. Shared Ownership works well for those on modest incomes while the First Homes Scheme is ideal if you meet local or key worker criteria.

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Tools to Help You Plan Your Mortgage

Use WiseNest’s free tools to take control of your home buying journey:

• Mortgage Affordability Calculator

Final Thoughts: Step Onto the Property Ladder with Confidence

Buying your first home in the UK may feel like a huge leap but you're not doing it alone. From government incentives to affordable mortgage products there’s more help than ever to get you started.

Explore all the schemes available speak to a mortgage advisor and use online tools to plan your next steps.

Your first home is closer than you think.