First-Time Buyer Schemes in the UK: Every Option Explained (2026)

The UK government has tweaked its support for first-time buyers many times in the last decade. Some schemes are still active, some closed but with grandfathered users, and one — the Mortgage Guarantee Scheme — has been made permanent under the rebrand "Permanent Mortgage Guarantee Scheme" launched in 2025. This guide is a current April 2026 snapshot.

Schemes that are open and active

1. Lifetime ISA (LISA)

The biggest cash boost still available. Save up to £4,000 a year, government adds 25% on top — up to £1,000 free per year. Open to anyone aged 18–39 who is a first-time buyer.

Property price cap: £450,000 anywhere in the UK
Holding period: account must be open at least 12 months before use
Withdrawal penalty: 25% if used for anything other than first home or retirement at 60+

Full details: Lifetime ISA for first-time buyers.

2. First Homes Scheme

A scheme for newly-built properties offered to local first-time buyers at 30–50% off market value. The discount is locked into the property — when you sell, you must sell at the same percentage below market.

Income cap: £80,000 (£90,000 in London)
Property price cap after discount: £250,000 (£420,000 in London)
Eligibility: must be FTB, own income, intend to live there, and meet local connection criteria (work or family link to the area)

Limited stock — most local councils have small allocations. Apply via the housing developer.

3. Shared Ownership

Buy 25–75% of a property, pay rent on the rest. Lower deposit, lower mortgage, but higher total cost than full ownership.

Property price: no cap (rent is on the unowned share)
Income cap: £80,000 (£90,000 in London)
Eligibility: cannot afford to buy outright, must be FTB or returning to ownership after divorce/relationship breakdown

Detailed guide: Shared ownership explained.

4. Permanent Mortgage Guarantee Scheme

Government guarantees the slice of mortgages between 80–95% LTV, encouraging lenders to offer 5% deposit deals. You don't apply to the scheme directly — it just exists in the background. The scheme was made permanent in 2025, replacing earlier time-limited extensions.

Now permanent (no expiry date)
Available on properties up to £600,000
Available for both first-time buyers and movers

If you have a 5% deposit, your broker will quietly use this scheme to find you a 95% LTV product. Read How to get a mortgage with a small deposit.

5. Right to Buy

For council tenants in England — buy your rented council home at a substantial discount based on tenancy length. Discounts capped at £102,400 (or £136,400 in London).

Eligibility: been a public sector tenant for 3+ years
Discount starts at 35% of market value
Property must continue to be your main home

Scotland and Wales no longer offer Right to Buy. See Right to Buy explained.

6. Stamp Duty Relief for First-Time Buyers

Not really a scheme but the most universal benefit — first-time buyers in England and NI pay no SDLT up to £300,000, then 5% from £300,001 to £500,000. Lose all relief above £500,000. (The temporary higher thresholds of £425k / £625k expired on 31 March 2025.)

Scotland (LBTT) and Wales (LTT) have their own structures. See UK stamp duty for first-time buyers.

Schemes that are closed (but you may still benefit)

Help to Buy ISA

Closed to new applicants since November 2019. If you opened one before that date, you can keep saving (£200/month max) and claim the bonus until December 2030.

25% bonus, capped at £3,000
Property must be under £250,000 (£450,000 in London)
Bonus paid at completion, not at exchange

If you have one, milk it. If you don't, use a LISA instead. See Help to Buy ISA explained.

Help to Buy Equity Loan

Closed to new applicants since March 2023. The government lent up to 20% (40% in London) for a new build, interest-free for 5 years.

If you have one, you can repay or sell at any time
5-year interest-free period ends, then interest is charged on the loan
Repayment amount tracks property value, not original loan

Repayment guide: Help to Buy equity loan repayment.

Region-specific schemes

Scotland

First Home Fund: closed in 2021
Open Market Shared Equity: still open — Scottish Government provides 10–40% equity stake. Income caps apply.

Wales

Help to Buy – Wales: still open until 2025. Government equity loan up to 20% on new builds for FTBs.
Homebuy: shared equity scheme for low-income buyers in specific areas.

Northern Ireland

Co-Ownership Housing: NI's version of shared ownership, run by Co-Ownership.

London

London Help to Buy equity loan was closed in 2023. Mortgage Guarantee Scheme and shared ownership remain.

Schemes for specific buyers

Key worker mortgage schemes

Most are run by individual lenders — Teachers Building Society, Newbury Building Society, Police Mutual — offering preferential rates or higher LTVs to NHS staff, teachers, police, military and firefighters.

The 2010s "Key Worker Living" scheme is closed. See Key worker mortgage schemes.

Armed forces mortgages

Forces Help to Buy offers serving personnel an interest-free advance of up to 50% of salary (capped at £25,000) to buy a home. Active until at least December 2024.

Older buyers

Mortgages over 50 are widely available, with retirement interest-only (RIO) products, lifetime mortgages, and family-assisted options. See Mortgages for over 50s.

Combining schemes

Many schemes can be combined:

LISA + shared ownership: yes, providing the property's full market value is under £450k
LISA + Mortgage Guarantee Scheme: yes
First Homes + LISA: yes
Help to Buy ISA + LISA: you can hold both, but only claim a bonus from one

Some can't:

Help to Buy equity loan + Mortgage Guarantee Scheme: rarely combinable due to total LTV constraints
Right to Buy + LISA: technically yes but usually unnecessary given the discount

Which scheme is right for you?

Quick decision tree:

Saving for a deposit and aged 18–39? → LISA, every time
Already have a small deposit but income is the constraint? → Shared ownership
Buying a new build under £250k–£420k? → First Homes scheme
Have a 5% deposit and want a normal mortgage? → Permanent Mortgage Guarantee Scheme (your broker handles it)
Council tenant? → Right to Buy

Get a free mortgage quote — many brokers will sense-check which schemes you qualify for.

Frequently asked questions

Are these schemes only for FTBs? Mostly yes. Shared ownership has carve-outs for divorcees and those who previously owned but can't afford outright now.

Is Help to Buy coming back? No formal announcement. The Permanent Mortgage Guarantee Scheme is the current government tool to help buyers with small deposits.

Can I use a scheme if I've owned property abroad? Generally no — "first-time buyer" means never owned anywhere in the world.

Do I have to use a specific lender for these schemes? Most schemes work across multiple lenders. Shared ownership has a narrower lender pool. Help to Buy equity loans had specific lender relationships.

Are there schemes for buying on your own? Yes — none of the schemes above require you to be in a couple. Income caps tend to be more comfortable for solo buyers.

This article is for informational purposes only and does not constitute financial advice. Always consult a qualified mortgage adviser before making a decision.