Buying your first home can feel a long way off when you’re saving for a deposit alongside everyday bills. First-time buyer schemes could bring it closer by boosting your savings, reducing the purchase price or helping you buy a share of a home.
Explore how the main options work, who they may suit and the costs to consider. Availability depends on where you buy and your circumstances, and you’ll still need to meet your lender’s mortgage requirements.
How first-time buyer support can help
SAVE
Build your deposit savings
A savings bonus can add to your own contributions, helping your deposit grow while you prepare to buy.
DISCOUNT
Buy at a discounted price
Buying an eligible home below market value can reduce your borrowing, although resale restrictions may apply.
SHARE
Buy a share of a home
Purchasing part of a home can lower the initial deposit, with rent payable on the remaining share.
BORROW
Get a mortgage with less deposit
Low-deposit mortgages reduce the savings needed upfront, but your income must still support the borrowing.
YOUR OPTIONS
First-time buyer schemes you can compare
DISCOUNT
First Homes scheme
30–50% discount on qualifying homes
England’s First Homes scheme offers eligible first-time buyers a discount on qualifying new homes and scheme resales. When you sell, the same percentage discount passes to the next eligible buyer.
Your household income must be no more than £80,000, or £90,000 in London. Councils can set lower limits and may give priority to local buyers or key workers. You must also find a home offered through the scheme.
BUY A SHARE
Shared ownership
Your deposit and mortgage fund the share you buy
With shared ownership, you buy part of a home and rent the rest. Funding a share reduces the upfront cost compared with buying the whole property.
Illustrative example: a 25% share of a £250,000 home, assuming your lender accepts a 5% deposit on that share.
Item
Illustrative amount
Full property price
£250,000
25% share
£62,500
5% deposit on your share
£3,125
Remaining share with rent due
75%
Buying costs are extra. Add rent, service charges and other costs to your mortgage payment when comparing options. Buying more shares later, known as staircasing, also costs money. Available shares and deposit requirements vary between shared ownership properties and lenders.
SAVINGS BONUS
Lifetime ISA
25% government bonus on eligible savings
A Lifetime ISA adds this bonus to savings of up to £4,000 each tax year. You must be 18–39 to open one and make your first payment before 40; then you can keep paying in until 50.
To use it for your first home, you must buy with a mortgage and plan to live there. The price must be £450,000 or less, and you must wait at least 12 months after your first payment. Your solicitor or conveyancer arranges the withdrawal.
WORTH KNOWING
Taking money out before 60 for a purchase that does not meet the rules normally triggers a 25% withdrawal charge. This takes back the bonus and some of your own savings, so check the property and timing before relying on the money.
SMALLER DEPOSIT
5% deposit mortgages
Buy with a 5% deposit, subject to lender checks
Buying with a 5% deposit means borrowing the remaining 95%. Some lenders use the government’s Mortgage Guarantee Scheme to offer these loans; others offer them independently.
The guarantee protects lenders against part of their potential losses. You still need to provide the deposit, pass affordability checks and repay the mortgage. It does not guarantee that your application will be approved.
How schemes differ across the UK
Lifetime ISAs and the Mortgage Guarantee Scheme operate across the UK, while housing schemes differ by country. The table covers selected routes; check what is available in the area where you want to buy.
Country
Support to investigate
England
First Homes discounts and shared ownership, as explained above.
Scotland
The First Homes Fund offers up to £10,000 towards homes worth up to £300,000. The government takes an equity stake, repayable according to the property’s value.
Wales
Help to Buy – Wales combines a 5% deposit with an equity mortgage of up to 20% for eligible new builds. Applications close on 31 March 2027. Shared Ownership – Wales offers another route.
Northern Ireland
Co-Ownership lets eligible buyers purchase an initial share and rent the remainder, subject to property and affordability checks.
A shared equity scheme helps fund your purchase in return for a stake linked to your home’s value. Unlike shared ownership, you do not pay rent on that stake, but you must repay it under the scheme rules. Help to Buy – Wales also has repayment terms and charges to consider, including interest from year six. Include these in your budget.
What could you afford to borrow?
Explore your potential borrowing and monthly repayments.
Other support worth checking before buying
Rent to Buy and London Living Rent
Rent to Buy in England outside London offers reduced rent to help eligible tenants save a deposit. London Living Rent serves a similar purpose in the capital.
Right to Buy and Right to Acquire
In England, qualifying council tenants may buy through Right to Buy. Some housing association tenants qualify for Right to Acquire. Both offer discounts on eligible rented homes.
Forces Help to Buy
Eligible service personnel can borrow up to 50% of their salary, capped at £25,000, interest-free through Forces Help to Buy. It is a repayable loan, so include repayments in your budget.
Family support and new-build incentives
A gifted deposit from family or a contribution from a developer can help close a savings gap. These are separate from other government schemes for first-time buyers. Tell your lender about any incentives when comparing new-build mortgage options.
Which schemes are no longer available?
England’s Help to Buy: Equity Loan and Help to Build are closed to new applications. Existing borrowers must still repay what they owe. Help to Buy continues separately in Wales.
Help to Buy ISAs are closed to new accounts, but existing holders can contribute until November 2029 and claim a qualifying bonus until November 2030. Deposit Unlock closed to new completions in April 2026, with outstanding mortgage offers honoured by the relevant lender.
How to compare your available options
Start with the barrier you need to overcome, then compare what each route asks of you:
Upfront costs
Deposit, legal fees and other buying costs.
Monthly costs
Mortgage payments, rent, service charges and loan repayments.
Future costs and restrictions
Rising charges, buying further shares, equity repayments and resale restrictions.
How Muttuo can help
Muttuo compares options from more than 100 lenders across the market. We can help you find borrowing options that fit your plans, although not every lender offers mortgages for every scheme.
Compare borrowing against your deposit and budget
Understand how scheme rules affect your options
Check property requirements alongside your circumstances
Find a route to your first home
Talk through the support routes that could fit your plans and what you need to consider next.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Your first-time buyer scheme questions answered
Can I combine first-time buyer schemes?
Sometimes. You can use a Lifetime ISA towards an eligible shared ownership purchase if you meet its home-buying rules. Ask your conveyancer to check how the £450,000 price limit applies.
You cannot claim both your own Lifetime ISA and Help to Buy ISA bonuses for the same purchase. Other combinations depend on scheme and lender rules.
Can I apply if my partner has owned a home?
For England’s First Homes scheme, all buyers must be first-time buyers. You may still use your own Lifetime ISA when buying with a previous homeowner, provided you meet its qualifying purchase rules.
Are first-time buyer schemes only for new builds?
No. First Homes and shared ownership include eligible scheme resales, while Lifetime ISAs can support qualifying existing homes. Help to Buy – Wales is specifically for eligible new builds.
