Every First-Time Buyer Scheme in the UK (2026)
A plain-English breakdown of Lifetime ISAs, Shared Ownership, Mortgage Guarantee, and First Homes — who qualifies, how much you save, and how to apply.
Buying your first home in the UK is expensive — but there are several government-backed schemes designed to help first-time buyers get on the property ladder. This guide covers every active scheme in 2026, who qualifies, and how much you could save.
1. Lifetime ISA (LISA)
The Lifetime ISA is the most valuable savings tool for first-time buyers under 40. The government adds a 25% bonus on top of everything you save, up to £1,000 per year.
- Who qualifies: UK residents aged 18–39 who have never owned a property
- Annual limit: £4,000 (which becomes £5,000 with the bonus)
- Property price cap: £450,000
- Withdrawal penalty: 25% on any non-qualifying withdrawal (effectively a 6.25% loss)
- Key rule: The account must be open for at least 12 months before you can use the funds
Example: Save £4,000 per year for 4 years and you'll have £20,000 (£16,000 saved + £4,000 government bonus). A couple with two LISAs could accumulate £40,000 in 4 years.
2. Mortgage Guarantee Scheme
The Mortgage Guarantee Scheme helps buyers purchase with just a 5% deposit. The government guarantees a portion of the mortgage, encouraging lenders to offer 95% LTV products with competitive rates.
- Deposit required: 5% minimum
- Property price cap: £600,000
- Who qualifies: Any buyer (not just first-timers), but the property must be your main residence
- Available from: Most major high-street lenders
Note: 95% LTV mortgages carry higher interest rates than 85% or 90% LTV deals. Even saving an extra 5% toward a 10% deposit can save you thousands in interest over the term. Use our mortgage calculator to compare scenarios.
3. Shared Ownership
Shared Ownership lets you buy a 25–75% share of a property and pay subsidised rent on the remainder to a housing association. You can increase your share over time ("staircasing") until you own 100%.
- Minimum share: 25%
- Household income cap: £80,000 (£90,000 in London)
- Deposit: 5–10% of your share (not the full property price)
- Rent: Typically 2.75% of the housing association's share per year
- Staircasing: Buy additional shares in 10% increments at current market value
Example: A £400,000 flat at 25% share means you buy £100,000 (deposit: £5,000–£10,000) and pay rent on the remaining £300,000.
4. First Homes Scheme
First Homes offers a 30–50% discount on new-build properties, locked in permanently. When you sell, the next buyer gets the same percentage discount — keeping homes affordable for future first-time buyers.
- Discount: Minimum 30%, up to 50% (set by local authority)
- Price cap after discount: £250,000 (£420,000 in London)
- Who qualifies: First-time buyers, household income under £80,000 (£90,000 in London)
- Local connection: Some councils prioritise local residents, key workers, or military
First Homes are available on selected new-build developments. Ask your local council or check the developer's sales office for availability.
Which scheme is right for you?
| Scheme | Best for | Max property price |
|---|---|---|
| Lifetime ISA | Savers under 40 with 1+ year to plan | £450,000 |
| Mortgage Guarantee | Buyers who can afford repayments but have a small deposit | £600,000 |
| Shared Ownership | Lower-income households who can't afford full ownership yet | Varies (income-capped) |
| First Homes | First-timers near eligible new-build developments | £250k / £420k London |
Next steps
These schemes can be combined — for example, you can use a Lifetime ISA as your deposit on a Shared Ownership property, or use it toward a 95% LTV mortgage under the Mortgage Guarantee Scheme.
Use our stamp duty calculator to check first-time buyer relief on your target price, and read our full buying guide for step-by-step instructions on the entire process.