There are several government schemes aimed at first-time buyers, and they solve different problems — some help you save a deposit, some let you buy with a smaller one, some let you buy less of the property outright. Here's what's actually available in 2026, who each one suits, and where they overlap.
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Build My Free Plan →| Scheme | What it actually does | Who it suits | Status |
|---|---|---|---|
| Lifetime ISA (LISA) | Government adds a 25% bonus on top of what you save, up to £1,000 a year | Buyers who are still saving a deposit | Open |
| Mortgage Guarantee Scheme | Backs lenders offering 90–95% mortgages, so you can buy with a smaller deposit | Buyers with a small deposit but stable income | Open |
| Shared Ownership | Buy a share of a home (typically 10–75%) and pay rent on the rest | Buyers who can't afford full market value in their area | Open |
| First Homes Scheme | New-build homes sold at a minimum 30% discount to first-time buyers | Buyers targeting new-build developments, subject to local eligibility | Open, limited availability |
| Help to Buy: Equity Loan | Government equity loan on new builds | — | Closed since March 2023 |
Scheme rules, income caps and regional variations change over time, and not every scheme is available everywhere. Always check the current criteria on the official government or MoneyHelper pages before relying on any of these figures.
You can pay in up to £4,000 a year, and the government adds a 25% bonus — up to £1,000 annually — as long as you're between 18 and 39 when you open the account and use it to buy a first home worth up to £450,000. This is the one scheme here that helps you get to a deposit faster, rather than needing a smaller one. It works well alongside the other schemes below, not instead of them.
This scheme doesn't hand you any money — it works behind the scenes, encouraging lenders to offer mortgages at 90–95% loan-to-value that they might otherwise consider too risky. In practice, this means access to mortgages requiring only a 5% deposit. You don't apply to the scheme directly; you apply for a mortgage as normal, and eligible lenders use the guarantee to offer you a better rate or higher LTV than they otherwise would. It only covers standard repayment mortgages — not interest-only, buy-to-let, or shared ownership purchases.
You buy a share of a property — commonly starting around 10–25% — and pay rent to a housing association on the remainder. Over time you can "staircase" and buy further shares, up to full ownership in most cases. Your deposit is based on the value of your share, not the full property price, which is what makes the initial cost lower. The trade-off is you're paying rent on top of your mortgage, and not every property type is eligible. Income limits and local waiting lists can apply, so eligibility varies significantly by area.
First Homes offers newly built properties at a minimum 30% discount to market value, reserved for first-time buyers, with a household income cap (commonly £80,000, or £90,000 in London). The discount stays with the property when it's eventually resold, which keeps it affordable for the next buyer too. The catch is availability — it depends entirely on developers building homes under the scheme in your area, so it's not something you can rely on everywhere.
If you've seen older articles mention the Help to Buy: Equity Loan scheme, it's worth knowing this closed to new applicants in England in March 2023. It doesn't run anymore, so it's not an option to plan around — only relevant if you already have one and are managing an existing equity loan.
Often, yes. A Lifetime ISA can build your deposit, and you can then use a Mortgage Guarantee Scheme-backed mortgage to buy with that deposit. Shared Ownership and First Homes are typically standalone routes into a specific type of property, rather than something layered on top of a standard purchase. A mortgage broker can tell you which combinations your income and deposit actually qualify for.
If you're still saving, a Lifetime ISA is the simplest way to get free money added to your deposit. If your deposit is small but your income is steady, the Mortgage Guarantee Scheme opens up 90–95% mortgages. If market prices in your area are simply too high for what you can borrow, Shared Ownership or First Homes are worth investigating — but check availability locally, since neither is guaranteed where you want to buy. None of this is financial advice, and scheme rules do change, so confirm current eligibility before you plan around any of them.
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