First-Time Buyer Schemes at a Glance
A first-time buyer scheme is government-backed help that makes it cheaper or easier to buy your first home, whether through a discount on the purchase price, a savings bonus, a smaller deposit or a tax cut. Different schemes suit different situations, and several can be combined. The table below summarises the main first-time buyer schemes available across the UK in 2026.
| Scheme | What you get | Where | Key eligibility |
|---|---|---|---|
| First Homes | 30% to 50% off a new-build home | England | First-time buyer, income under £80,000 (£90,000 in London) |
| Shared Ownership | Buy a 10% to 75% share, rent the rest | UK-wide | Cannot afford a home outright; income caps apply |
| Lifetime ISA | 25% government bonus on savings | UK-wide | Aged 18 to 39 to open; first home up to £450,000 |
| Mortgage guarantee | Access to 5% deposit (95% LTV) mortgages | UK-wide | First-time buyers and home movers; lender-led |
| Stamp duty relief | No SDLT up to £300,000 | England & N. Ireland | First-time buyer, property up to £500,000 |
Who Is Eligible for a First-Time Buyer Scheme?
The most important condition for any first-time buyer scheme is that you have never owned a home before, anywhere in the world. People who have previously owned a property won't be treated as first-time buyers, even if they don't own one now. The question of who counts as a first-time buyer can be complicated, so here is a quick checklist for your situation.
You usually are a first-time buyer if you:
- have never owned a residential property;
- have owned a commercial property but never a home;
- are applying for a joint mortgage where no applicant has owned a property before.
You generally are not a first-time buyer if you:
- have owned and sold a property;
- have inherited a property or a share of one;
- have jointly owned a property;
- have a spouse or partner who already owns a home.
So if you have been renting all your life, you will most likely qualify for a first-time buyer scheme.
How Much Deposit Do First-Time Buyers Need?
Most lenders want a deposit of at least 5% of the property's value, although a 10% or larger deposit usually unlocks lower interest rates. For a home worth £250,000, a 5% deposit is £12,500, while a 10% deposit is £25,000, plus extra for legal fees and surveys.
First-time buyer schemes are designed to bring that deposit within reach. The mortgage guarantee scheme encourages lenders to offer 95% mortgages, Shared Ownership lets you put down a deposit on just a share of the home, and a Lifetime ISA boosts your savings with a 25% government bonus. For a deeper look, read our mortgage deposit guide and find out how much you can borrow.
What does loan-to-value mean? Loan-to-value (LTV) is how much you borrow compared with the home's value. If the house price is £250,000 and your deposit is £25,000 (10%), your lender lends you £225,000 (90%), so the LTV is 90%. A 5% deposit means a 95% LTV. The lower your LTV, the better the mortgage rates you can usually access.
What First-Time Buyer Schemes Are There in 2026?
First-time buyer schemes differ across the UK, with separate rules for England, Scotland, Wales and Northern Ireland. Several schemes can be combined, for example saving into a Lifetime ISA and then using it towards a Shared Ownership or First Homes purchase.
First Homes Scheme
The First Homes scheme launched in 2021 to help first-time buyers and key workers in England buy a home below market value. Eligible properties are usually new-builds sold at a 30% to 50% discount, and that discount stays with the home when it is later sold, keeping it affordable for future buyers.
To qualify for a First Home you must:
- be 18 or over and a first-time buyer;
- have a household income of no more than £80,000 a year, or £90,000 in London;
- be able to get a mortgage for at least half the discounted price.
Local councils can add their own conditions, such as a local connection or priority for key workers. You can buy with a deposit as low as 5% of the discounted price.
Shared Ownership
Shared Ownership lets you buy a share of a home and pay rent on the rest, which means a much smaller deposit and mortgage. You can usually buy a share of between 10% and 75%, and your deposit is typically 5% to 10% of the share you are buying, not the whole property.
Over time you can buy more shares in a process called staircasing, reducing your rent as your share grows and, in many cases, eventually owning the home outright. Shared Ownership is available across the UK, although the exact rules and income caps vary by nation. It is a strong option if you cannot afford a full deposit and mortgage for a home that meets your needs.
Lifetime ISA
A Lifetime ISA (LISA) is a savings account that boosts your deposit with a 25% government bonus. You can pay in up to £4,000 a year and receive up to £1,000 a year on top, until you turn 50. You must open the account between the ages of 18 and 39.
The savings and bonus can be used towards a first home worth up to £450,000, as long as you have held the account for at least 12 months and buy with a mortgage. If you withdraw the money for any other reason before age 60, you pay a 25% withdrawal charge, which can leave you with less than you paid in.
Mortgage Guarantee Scheme
The mortgage guarantee scheme helps lenders offer 95% loan-to-value mortgages, so you only need a 5% deposit. The government guarantees part of the loan, which reduces the lender's risk and encourages more low-deposit deals on the market.
You don't apply to the scheme yourself, you simply apply for a 95% mortgage with a participating lender. It is open to both first-time buyers and home movers, subject to the usual affordability and credit checks. Compare the different products available in our mortgage types guide.
Stamp Duty Relief for First-Time Buyers
In England and Northern Ireland, Stamp Duty Land Tax (SDLT) is a tax you pay when buying a property. First-time buyers benefit from relief: you pay no SDLT on the first £300,000 of the price, then 5% on the portion between £300,001 and £500,000.
If the property costs more than £500,000, you cannot claim first-time buyer relief and pay the standard rates instead. Scotland and Wales have their own equivalent taxes (Land and Buildings Transaction Tax and Land Transaction Tax) with separate first-time buyer rules.
Help to Buy and Right to Buy
The Help to Buy equity loan has now closed to new applicants in both England and Wales, so it is no longer an option for first-time buyers. If you are a council or housing association tenant, however, Right to Buy may let you buy your current home at a discount.
What's the Right to Buy? Right to Buy lets eligible council tenants buy their home at a discounted price, often between 35% and 70% of market value depending on how long you have been a tenant. It is a different route to homeownership from the schemes above.
To find out more, read our Right to Buy guide.
How Do I Apply for a First-Time Buyer Scheme?
For most schemes, you don't apply directly to the government. The route depends on the scheme:
- First Homes: contact a developer or estate agent marketing First Homes in your area, and apply through your local council;
- Shared Ownership: apply through the housing association or developer that owns the home;
- Lifetime ISA: open an account with a bank or investment provider, then instruct your conveyancer when you buy;
- Mortgage guarantee: simply apply for a 95% mortgage with a participating lender;
- Stamp duty relief: your conveyancer claims it automatically on your SDLT return.
Before you start, it helps to know your budget. See our guides on buying a house and the UK housing market, and explore all our mortgage guides to find the right deal.
Can I Buy a House on Benefits?
If you receive benefits, you are still eligible to apply for a mortgage on the same terms as anyone else. Lenders cannot discriminate based on how you receive your income, so if you get universal credit or child benefit you can still apply, although not every lender counts benefit income towards affordability.
How you receive your income won't affect your eligibility for a scheme, but you will still need a good credit score. That means keeping debts low and having a solid history of paying your bills on time.