First-time buyer mortgage schemes 2026

Buying your first home is a big milestone and saving a deposit for a mortgage can feel like a challenge. First-time buyer mortgage schemes are designed to make saving up and buying a home more achievable.

First‑time buyer mortgage schemes typically help reduce the upfront costs of buying. Some schemes lower the deposit you need, whilst others help you save up faster.

Whilst government-backed mortgage schemes have helped thousands of people to buy their first home, the process and rules can be complex and availability can be limited.

Our guide compares the main first‑time buyer schemes available in 2026, explaining how they work, the pros and cons, and who is eligible.

Compare First-Time Buyer Mortgage Schemes

There are many types of mortgages available to first-time buyers in the UK. In 2026, there are several government‑backed schemes available to first-time buyer, with regional variations. Each scheme works differently and eligibility rules vary by location, income and property type.

The main first-time buyer schemes we compare in this guide are:

• First Homes (England only) – buy a new‑build home at a permanent discount.
• Shared ownership schemes – buy a share of a home and pay rent on the rest, with different regional schemes available in Scotland and Northern Ireland.
• Help to Buy (Wales only) – use an equity loan to boost your deposit.
• Lifetime ISA – get a 25% government bonus on your savings, when buying a home under a certain threshold.
• Mortgage Guarantee Scheme – access 95% mortgages with a 5% deposit.

Try our Mortgage Calculator

Work out your home-buying budget

First Homes

The First Homes scheme helps first‑time buyers in England get on the property ladder, by offering new build homes at a discount. With this scheme, first-time buyers can buy a newly built home at a discount of at least 30% of market value.

These new homes are sold at 30% to 50% below market value, and the discount stays in place when the home is resold – keeping these homes more affordable long-term.

The scheme is available on selected new‑build homes and some resales originally bought through First Homes.

Who this scheme works for

• First‑time buyers struggling with high house prices in their area
• Buyers with smaller deposits of 5% (of the discounted price)
• Key workers or people with a local connection, as some councils prioritise these applicants

Eligibility criteria

To qualify for the First Homes scheme, single or joint buyers need:

• To be a first‑time buyer
• To be aged 18 or over
• A total household income under £80,000, or £90,000 if in London
• A mortgage for at least 50% of the discounted price

Local councils may set their own eligibility criteria, with some prioritising First Homes discounts to key workers or those on lower incomes. Local eligibility criteria can only apply for the first 3 months of the property being on sale, but demand can be high.

Potential drawbacks

• There’s limited availability of homes on the scheme and it’s only available in England
• Homes must be a new home built by a developer, or a resale from the scheme
• The discount is passed on when you sell, which can limit the money you make from the sale
• A more complex process to sell your home, with part ownership, leasehold restrictions and needing to stay on the scheme

You can look for new build homes available on the First Home scheme through local developers directly or ask your local estate agents. Search for new homes in your area here.

Check average UK mortgage rates

Compare rates across a range of loan to value (LTV) percentages.

Shared Ownership

Shared Ownership is a first-time buyer scheme that lets you buy part of a home and rent the rest from a housing association.

With this scheme you usually buy between 25% and 75% of the property, paying a deposit on that amount. Some homes allow you to buy 10%.

Each month, you will pay rent on the remaining part of your home. Over time, you can buy more shares – this is known as staircasing.

Who this scheme works for

• Buyers who can’t afford a full mortgage for a property in their local area
• People with smaller deposits, but a steady income
• First-time buyers happy with part-ownership and part-rent, to get on the property ladder

Eligibility criteria

To qualify for Shared Ownership, you usually need:

• To be 18 years old or older
• A household income under £80,000 (£90,000 in London)
• To show you can’t afford to buy outright
• A deposit of 5% to 10% of your share, not the full value
• To prove you have good credit and no outstanding debt

Potential drawbacks

• All Shared Ownership properties are leasehold, so you are likely to pay other charges like service fees and ground rent
• Selling can take longer, as the property remains a Shared Ownership property for resale
• You pay rent on the share you do not own, which can increase with market rates
• You are 100% responsible for maintenance of the property, despite owning a share
• Staircasing comes with additional costs and fees to pay
• The housing association is responsible for gardens and communal areas and the quality you get for service charges can vary

Chris, who bought his London flat through the Shared Ownership first-time buyer scheme, shares his experience:

“After renting in London for many years, I wanted to take the next step and get on the property ladder. But once I learned about Shared Ownership, I realised that I could actually get a mortgage for a flat in my favourite area. Without the scheme, I would have had to relocate to buy, so it’s really allowed me to carry on planning for the future.

A good tip is to look out for ‘resale’ properties on the scheme. As mine wasn’t brand new it was slightly cheaper than the other shared ownership homes nearby.”

How to apply

First, check if you’re eligible for Shared Ownership and make sure you understand how it works. You can then search for a suitable home through a Shared Ownership provider in your area, who’ll confirm your eligibility, share available homes, arrange viewings and check affordability.

Once you’ve chosen a property, you can reserve it by paying a fee (usually up to £500), which is taken off the final purchase price if you go ahead. You’ll then need to appoint a solicitor or licensed conveyancer to handle the legal work and guide you through the lease and mortgage terms. Find out more about eligibility at gov.uk.

---

Low-cost Initiative for First-Time Buyers (LIFT)

The Scottish government offers two schemes for first-time buyers that sit under the Low-cost Initiative for First-Time Buyers (LIFT). These schemes are:

• Open Market Shared Equity*: helping first-time buyers to buy a home on the open market (*temporarily closed for applications – estimated to reopen in 2026/2027)
• New Supply Shared Equity (NSSE): a scheme that helps people on low to moderate incomes buy a new‑build home from a council or housing association

With New Supply Shared Equity, you buy the majority share of the property, usually between 60% and 80%. The Scottish Government covers the rest through a shared equity agreement. This means you don’t have to fund the full price.

You own the home outright. The government’s share is secured against the property and reflects the same percentage of its value if prices go up or down. Once in the property, you can choose to increase your share by at least 5% each year.

You’ll still need to cover your mortgage, legal fees and any service or factoring charges that apply.

Who this scheme works for

• First-time buyers who can’t afford to buy a new build house without help
• People who want to own the complete title to their home
• Buyers happy to gradually build up equity over an extended time

Eligibility criteria

• Households with low to medium incomes – assessments will vary locally
• You’ll need to be able to show that you can’t buy a new build house that suits your needs without getting help from the NSSE scheme
• You need to be able to buy 60% of the home, through savings or a mortgage

Potential drawbacks

• Limited supply – there may be a waiting list for the schemes in your local area
• There could be a limit on how much of your home you can buy, with the government keeping up to 20%.

How to apply

Speak to an independent mortgage adviser to work out how much you can afford to borrow. You can find more info on how to apply on the Scottish Government website.

---

Co-ownership scheme (Northern Ireland only)

Like Shared Ownership in England, the Co-ownership scheme lets first-time buyers in Northern Ireland purchase between 50% and 90% of a home and rent the rest.

Who this scheme works for

• First-time buyers who are struggling to save a large deposit or want to buy sooner
• Buyers who have a steady income and can afford monthly mortgage payments

Eligibility criteria

To qualify for the CoOwnership scheme, you usually need:

• To be a Northern Ireland resident who does not own a home
• 3 months of bank statements without unauthorised overdrafts, returns Direct Debits or bank charges for unauthorised usage
• No adverse credit
• To be in employment for a minimum of 6-12 months
• Proof of income for 2 years if self-employed

Potential drawbacks

• Limited choice of properties available
• Staircasing expenses – you pay fees when buying more shares
• More limited mortgage lender options
• You cannot make structural changes to the property without permission

How to apply

Applying for CoOwnership in Northern Ireland can be done online, with a £100 non-refundable fee, and a financial credit check to determine eligibility.

---

Help to Buy (Wales only)

Help to Buy in Wales is still open to new applicants in 2026. You put down a 5% deposit on a new build home in Wales. The Welsh Government lends up to 20% of the property value as an equity loan. The rest is covered by your mortgage.

The scheme is available on new‑build homes only.

Who this scheme works for

• First‑time buyers living in Wales
• Buyers with small deposits
• People buying new‑build homes

Eligibility criteria

To qualify for Help to Buy in Wales, you usually need:

• The property to cost £300,000 or less.
• To prove the home will be your main residence

Potential drawbacks

• Equity loan repayments rise with property value.
• Limited to Wales and to new builds
• Interest rates apply after year five of ownership

How to apply

Find out more information about the Help to Buy scheme in Wales. You can apply for the scheme by finding an eligible property offered by a registered Help to Buy developer. It’s recommended to use an expert conveyancer to help with your application.

---

Lifetime ISA

A Lifetime ISA (LISA) is a bank account that helps you save for your first home. After opening a Lifetime ISA, you can save up to £4,000 a year. The government adds a 25% bonus, up to £1,000 a year.

The money can be used towards a first‑time buyer mortgage deposit.

Before opening a LISA, be sure to check that the kind of home you want falls well under the price limit.

Who this scheme works for

• First-time buyers aged18 to 39
• People planning ahead to save for a deposit
• Buyers purchasing a home worth £450,000 or less

Eligibility criteria

Any UK resident between the age of 18 and 40 can open a Lifetime ISA. To be eligible for the bonus when buying your first home, you need to:

• Open the account 12 months before buying a house
• Buy your home with mortgage
• Use a conveyancer or solicitor to act for you in the home-buying process
• Buy a property under £450,000

Potential drawbacks

• A 25% withdrawal penalty applies if you withdraw the money for other uses
• The property price cap (frozen since 2017) may limit options in some areas, like London

Whilst the LISA is a popular and effective savings option for many first-time buyers around the UK, it does have its limitations. For one, not all mainstream banks will offer LISAs, due to complexity of the scheme requirements.

Also, if you are in a more expensive area of the country, it might not offer the right home options. Jan, our Content Manager shares his experience of LISA drawbacks:

“Like other first-time buyers around the UK, I found the 25% LISA bonus offered by the government very appealing. But before opening one, be sure to check that the kind of home you want falls well under the price limit.

After saving up for years, I ended up buying a home slightly over the eligibility threshold, due to the area I was in, so I missed out on the bonus. I was also penalised for withdrawing savings from my LISA, so if you’re in an expensive area, it’s worth checking if there are other savings accounts with better interest rates, or alternative schemes available.”

How to apply

You can open a LISA with most banks and building societies. Make sure you have your National Insurance number ready for the application.

---

Mortgage Guarantee Scheme

The new Mortgage Guarantee Scheme has been available since July 2025, allowing more first-time buyers to buy a home with a 5% deposit. The government scheme encourages lenders to offer 95% loan‑to‑value mortgages, acting as a guarantor for a portion of the mortgage.

There have a been a few iterations of this scheme in the past, but the concept has been very similar. Ultimately, the current Mortgage Guarantee Scheme is a move by the government to get more lenders to offer 95% mortgages. The scheme is available across the UK.

Who this scheme works for

• Buyers with small deposits
• First‑time buyers and home movers

Eligibility criteria

The Mortgage Guarantee Scheme isn’t something you apply for directly, so the eligibility criteria is what you’d need to access a 95% mortgage. This usually requires you to:

• Have a deposit between 5% and 9%

• Provie the property is your main home and is valued under £600,000
• Apply or repayment mortgage
• Pass the lender’s own affordability checks

Potential drawbacks

• Interest rates can be higher with a lower LTV
• Typical mortgage affordability checks still apply and this is not a loan

How to apply

Not all 95% mortgages available on the market are on the Mortgage Guarantee Scheme. You will need to look for individual lenders that offer this, then apply for a 95% mortgage by following their usual process for getting a mortgage.

With lower deposit mortgages, we would always recommend working out how much you can afford to borrow for your home, seeing your monthly repayments with our mortgage calculator.

Your mortgage rate is mainly influenced by:

• The size of your deposit
• Your credit history
• The type of mortgage you choose

A mortgage broker can help you find lenders who understand self‑employed income and can offer competitive rates based on the market averages.

---

How to apply for a first-time buyer mortgage scheme

1. Check which schemes you may be eligible for.
2. Organise your finances and work out your budget and deposit.
3. Get a mortgage in principle to understand what you could borrow.
4. Find a suitable property.
5. Apply for your mortgage and scheme support.

A mortgage broker can help compare lenders and explain your options. This can be useful if you’re combining schemes.

Get a Mortgage in Principle

How to choose the right first-time buyer scheme

Every first‑time buyer has unique circumstances and there are different first-time buyer schemes available, with different eligibility requirements, benefits and drawbacks.

Before applying for a first-time buyer government scheme, make sure you understand how the scheme works and weight up the pros and cons.

When considering which option is right for you, think about:

• How long you plan to stay in the property
• Whether you’re comfortable with resale rules
• Any additional costs or admin that you will have

Finally, we recommend that you always read the small print on the scheme you are interested in.

First-time buyer government schemes are a useful tool for people wanting to buy their first home, who might otherwise be unable to afford a full deposit.

Where a mortgage is still required to buy your home, you should always understand what you can afford before signing up for a scheme and shop around for the best mortgage rates available to you.

If you’re unsure about what scheme to go for, further support is available through mortgage brokers, housing associations and local authority websites.

---

Why use first-time buyer schemes?

First‑time buyer schemes exist to improve access to home ownership, for people who may not be able to afford to buy a property outright on the open market.

Government backed mortgage schemes for first-time buyers help by:

• Having lower deposit requirements
• Reducing upfront costs
• Making monthly payments more manageable
• Opening doors to homes you might not otherwise be able to access

“Shared Ownership and Shared Equity schemes have helped many first‑time buyers over the years, but they are niche offers.

At their core, these schemes exist to help people overcome real barriers like saving for a deposit and affordability, especially in a market where house prices have outpaced incomes.

Whilst they come with limitations and complexities, these schemes can offer a safe, practical way for buyers to take that first step onto the property ladder,” says Matt Smith.

Once you’ve carefully assessed if one of these schemes works best for you, getting a mortgage and buying your first home can become more achievable.

Frequently asked questions

• What government schemes are available for first time buyers in 2026?

  There are a few government schemes aimed at first-time buyers in the UK, including First Homes, Shared Ownership, Lifetime ISA, the Mortgage Guarantee Scheme, and Help to Buy in Wales. Regional variations of Shared Ownership schemes are available in Scotland, Wales and Northern Ireland.

• What is the best scheme for first-time buyers?

  There is no single best scheme, as each scheme helps in a different way. The right option for you depends on your deposit amount, your income and where you are going to buy. To understand the best scheme for you, make sure you understand eligibility requirements and how you would pay for your share of the home.

• Who is eligible for the Help to Buy scheme?

  Help to Buy is no longer available as a scheme in England. In 2026, Help to Buy is only available in Wales for first-time buyers willing to purchase new‑build homes under £300,000.

• What is the best type of mortgage for first-time buyers?

  This depends on affordability, deposit size and risk tolerance. Many buyers use fixed‑rate repayment mortgages.

• How much deposit do first-time buyers need for a mortgage?

  Typical deposits for first-time buyers are 10%. Some buyers may be able to buy with a 5% deposit, depending on the lender and whether they apply for a first-time buyer mortgage scheme

• Which banks offer Lifetime ISA in the UK?

  Lifetime ISAs are offered by specialist banks, building societies and investment providers authorised in the UK. Unfortunately, many mainstream and high-street banks in the UK, do not offer LISAs, because of the complexity of the scheme.

  A recent study into the effectiveness of Lifetime ISAs as a consumer savings product, found that only 1 in 7 banks that offer ISAs, offered a LISA option*.

Please note: Your home may be repossessed if you do not keep up repayments on the mortgage. Rightmove is not authorised to give financial advice; the information and opinions provided in these articles are not intended to be financial advice and should not be relied upon when making financial decisions. Please seek advice from a regulated mortgage adviser.  

*Sources:Gov.uk: Shared Ownership; MyGov.scot; CoOwnership: Starting the Process; Lifetime Individual Savings Account report 2025