UK First-Time Buyer Schemes: Government & Lender Programs

Buying your first home in the UK? Several schemes can bridge the deposit gap, lower monthly costs, or unlock ownership. Here's the current landscape (2024).

Government-Backed Schemes

1. First Homes Scheme (England)

• What: New-build homes at 30–50% market discount
• Eligibility: First-time buyers, local connection, household income ≤£80K (£90K London)
• Catch: Discount passes to future buyers; mortgage on discounted value

2. Shared Ownership

• What: Buy 25–75% share, pay subsidized rent on rest
• Staircasing: Increase share to 100% over time
• Eligibility: Income ≤£80K (£90K London), can't afford suitable home otherwise
• Providers: Housing associations, developers

3. Mortgage Guarantee Scheme (Extended to June 2025)

• What: Govt guarantees 95% LTV mortgages → lenders offer 5% deposit deals
• Lenders: Lloyds, Barclays, HSBC, NatWest, Santander, others
• Eligibility: First-time buyers + home movers; property ≤£600K

4. Lifetime ISA (LISA)

• What: Save ≤£4K/yr, govt adds 25% bonus (max £1K/yr)
• Use for: First home ≤£450K (any UK) or retirement (60+)
• Age: Open 18–39, contribute to 50

5. Right to Buy (Council Tenants)

• What: Buy your council home at discount up to £102,400 (£136,000 London)
• Eligibility: 3+ years as public sector tenant

6. Deposit Unlock (Home Builders Federation)

• What: 5% deposit on new builds from participating builders
• No govt backing — builder-funded insurance

Lender-Specific Offers

• First-time buyer mortgages: Lower rates, cashback, free valuation, lower fees
• Family springboard / guarantor mortgages: Parents' savings/property as security (Barclays, Lloyds, Nationwide, others)
• Professional mortgages: Higher LTV for doctors, lawyers, accountants
• Green mortgages: Rate discount for EPC A/B homes

Where to Search

• Own Your Home — govt portal, all schemes, eligibility checker
• MoneySavingExpert — up-to-date comparisons, calculators
• Local council website — area-specific shared ownership, First Homes listings
• Mortgage broker — whole-of-market access, scheme navigation

Key Warnings

• Schemes change — check current rules before committing
• New-build premiums may offset discounts
• Shared ownership = leasehold + service charges + rent
• LISA penalty (25%) if withdrawn for non-home/non-retirement

The ladder exists. You just need the right rung.