Government schemes for first-time buyers

For many first-time buyers, one of the biggest hurdles is getting together a deposit while also finding a mortgage that fits your income and outgoings. Alongside mainstream lenders, there are a number of government-backed (or government-supported) schemes designed to make buying a home more achievable.

This guide brings together the main options you’re likely to hear about, explains how they generally work, and highlights practical points to consider before you decide which route is best for you.

Related guides:

• Lifetime ISA explained
• Shared Ownership explained
• Mortgage Guarantee Scheme
• First Homes Scheme eligibility

Lifetime ISA (LISA)

A Lifetime ISA is a savings account that can help you build a deposit for your first home, with a government bonus added to what you save.

How it helps (typical structure):

• You can contribute up to £4,000 per tax year.
• The government adds a 25% bonus (up to £1,000 per year).

Common practical points:

• It’s aimed at people saving for their first home.
• The property purchase must meet the scheme’s rules (including a property value limit).
• You generally need to use the funds for a qualifying purpose to avoid charges.

A LISA can be particularly useful if you’re disciplined about saving and want a clear, deposit-focused way to build funds over time.

Shared Ownership

Shared Ownership is designed for buyers who may be able to afford a mortgage for part of a home, but not the full purchase price straight away.

How it works:

• You buy a share of the property.
• You take out a mortgage for that share.
• You pay rent on the remaining share.
• Over time, you may be able to increase your ownership through staircasing.

What to consider:

• Shared Ownership homes are often leasehold, so it’s important to understand the lease terms and long-term costs.
• Your monthly budget needs to include both mortgage payments and rent.
• The ability to staircase and the cost of doing so can affect your long-term plan.

Mortgage Guarantee Scheme (high LTV)

The Mortgage Guarantee Scheme is intended to encourage higher loan-to-value (LTV) lending. In practical terms, it can help some buyers access mortgages with a smaller deposit than would otherwise be available.

How it helps:

• It supports lenders to offer mortgages at higher LTV levels.
• This can reduce the deposit needed for an eligible mortgage product.

Important practical points:

• Even with a government-backed guarantee, lenders still assess affordability and suitability.
• The scheme is tied to specific mortgage products and property/value limits.
• Your mortgage type (for example, repayment vs interest-only) may be restricted under the scheme.

This route can be useful if you’re close to buying but your deposit is the main constraint.

Deposit Unlock (high loan-to-value newbuild lending)

Deposit Unlock is a newbuild-focused approach intended to help borrowers with a smaller deposit access mortgage finance.

How it works:

• It is typically structured around high loan-to-value (LTV) lending for eligible newbuild properties.
• The aim is to reduce the deposit barrier by allowing a larger mortgage relative to the property price.

What to consider:

• Newbuild requirement: the scheme is generally tied to specific new developments and participating lenders.
• LTV impact on mortgage pricing: higher LTV borrowing can influence the interest rate and overall cost of the mortgage (exact pricing depends on the lender and your circumstances).
• Availability: not all properties or developments will be eligible, so the scheme may limit your choices.

For a detailed guide to how the scheme works, see Deposit Unlock explained.

First Homes scheme (new-build discounts)

First Homes is aimed at helping first-time buyers access new-build homes at a discount.

How it works:

• Homes are sold at a discount from market value.
• The discount level is set through the scheme framework and can vary.

What to consider:

• Availability depends on specific developments and local delivery.
• Eligibility can include conditions around who can buy (for example, local first-time buyers and/or key workers) and income caps.
• Because it’s linked to particular homes, you may need to search based on what’s available in your area.

Rent to Buy (and London Living Rent)

Rent to Buy-style schemes are designed to help people build savings while living in a home, with the intention of moving towards ownership later.

How it generally works:

• You rent a property at a reduced rate for a set period.
• The reduced rent is intended to help you save towards a deposit.

What to consider:

• These schemes are often administered locally, so the exact terms can vary.
• London Living Rent is a related concept with its own rules.

If you’re not ready to buy immediately, these schemes can be a way to reduce housing costs while you plan for a future mortgage.

Right to Buy and Right to Acquire

Right to Buy and Right to Acquire are aimed at tenants of public sector landlords.

Right to Buy (council tenants)

• Typically offers a discount to help eligible council tenants buy the home they live in.
• The scheme is tied to tenancy and property conditions.

Right to Acquire (housing association tenants)

• Offers a discount for eligible tenants of housing associations.
• The discount structure can differ from Right to Buy.

Key practical points:

• A discount on the purchase price doesn’t automatically mean you’ll be approved for a mortgage.
• Eligibility depends on your landlord type, tenancy length, and other conditions.
• The rules can differ across the UK.

Forces Help to Buy

Forces Help to Buy supports eligible members of the Armed Forces with an interest-free loan that can be used towards the deposit and certain buying costs.

This can reduce the deposit burden and may help improve mortgage affordability by lowering the amount you need to borrow.

Home ownership schemes by nation

Home ownership schemes in Wales

Help to Buy (Wales)

Help to Buy (Wales) supports first-time buyers purchasing a new-build home with an equity loan alongside a mortgage.

Typical features to understand:

• The equity loan can reduce the amount you need to borrow, which may improve affordability.
• The equity loan is repaid when the property is sold or at the end of the loan term, and interest may apply after an initial period.

Homebuy (Wales)

Homebuy (Wales) provides an equity loan for eligible buyers, often aimed at helping people access suitable homes in their local area.

Because it is targeted and not universal, availability can depend on where you live and the type of property being considered.

Home ownership schemes in Scotland

In Scotland, many home ownership support routes are delivered through the Low-cost Initiative for First Time Buyers (LIFT), including shared equity arrangements.

New Supply Shared Equity (NSSE) (Scotland)

NSSE supports buyers of new-build homes through a shared equity structure.

In broad terms:

• The Scottish government buys a share of the property.
• You buy the remainder with a mortgage.
• When you sell, the government share is typically repaid based on the sale price.

Open Market Shared Equity (OMSE) (Scotland)

OMSE is similar in concept to NSSE, but it can be used for eligible properties on the open market.

The key difference is the type of property it applies to, which can affect what homes you can consider.

Home ownership schemes in Northern Ireland

Northern Ireland has a different delivery landscape compared with Great Britain.

While there may not be a direct equivalent to some England and Wales schemes, first-time buyers can still access certain UK-wide supports. A well-known option is shared ownership (often referred to as Co-Ownership in Northern Ireland), which allows buyers to purchase a share and pay rent on the remainder.

Closed schemes in England

Help to Build (self-build support)

Help to Build supported self-build projects, helping eligible buyers obtain finance for building their own home. The scheme closed to new applications on 31 March 2025. Check the government guidance.

How it helped:

• You may have been able to access a self-build mortgage through lenders registered with the scheme.

What to consider:

• Self-build projects involve timelines and costs that can differ significantly from buying a completed property.
• There were typically caps and conditions relating to the project and costs.

Help to Buy (equity loan)

Help to Buy was an equity loan scheme aimed at helping eligible first-time buyers purchase a newbuild property. It is no longer open to new applicants in England. Check the government guidance.

How it worked:

• The buyer raised a deposit and took out a mortgage.
• An equity loan was provided to cover part of the property’s value.
• Because the equity loan covered a portion of the purchase price, the buyer may have needed a smaller deposit and a smaller mortgage than they would otherwise.

What to consider:

• Property type and location: equity loan schemes were typically linked to newbuild homes and could have regional limits.
• Repayment expectations: equity loans are not the same as a mortgage, repayment terms can differ, and it’s important to understand what happens when you sell or when the loan is repaid.
• Building standards and eligibility rules: eligibility could depend on the property meeting specific requirements.

New applications closed in October 2022. The scheme ended for existing applicants in 2023. If you already have a Help to Buy ISA, there may be remaining timeframes and rules for how it can be used, depending on the product.

What to consider when choosing a scheme

Government schemes can change the deposit position and the structure of home ownership, but they don’t remove the need to plan carefully for the overall cost of buying and living in the property.

When comparing options, consider:

• Monthly affordability: mortgage payments plus any rent (where applicable).
• Long-term ownership plan: whether you can increase your share over time, and what that may involve.
• Property type and location limits: many schemes apply only to certain property values, new-build developments, or specific areas.
• Leasehold implications: especially where schemes involve leasehold properties.
• Timing and availability: some schemes are development-specific or administered locally.

How home ownership schemes can affect your mortgage

Using a scheme doesn’t remove the need for a mortgage, it changes the structure of the purchase and the costs you carry.

Common factors that can influence mortgage suitability include:

• Deposit and LTV: schemes may reduce the deposit requirement or the amount you need to borrow.
• Rent on the unowned share (shared ownership): lenders and affordability models may consider rent payments alongside mortgage payments.
• Equity loans and repayment terms: shared equity arrangements can affect the overall financial picture, including how and when additional amounts are repaid.
• Property restrictions: some schemes include resale rules or require future sales to follow scheme terms.
• Lender participation: not all lenders offer mortgages for every scheme type.

Because scheme rules and lender criteria can both vary, it’s usually important to align the mortgage product with the scheme from the start.

Other mortgage routes first-time buyers may consider

Home ownership schemes are only one part of the picture. Depending on your circumstances, other mortgage approaches may also be relevant, such as:

• Guarantor mortgages, where an additional party provides security to help you qualify.
• Low-deposit options, including some niche products and scenarios where deposits can be supported through permitted sources.

How a mortgage broker fits in

A mortgage broker can help you understand how a scheme may interact with mortgage options and lender requirements. Because some schemes involve shared equity, higher LTV lending, or additional costs such as rent, it’s often helpful to think about the scheme and the mortgage together rather than separately.

A broker can also help you compare practical routes that match your budget and timeline, so you can focus on options that are realistic for your circumstances.

Important: scheme rules, eligibility and availability can change. Always check the latest guidance for the specific scheme you’re considering.