Buying your first home can feel less like one decision and more like a maze of deposits, mortgages and eligibility rules. Some options boost savings, some make a smaller deposit workable, and others reduce the amount of the property you need to fund. The best route depends on your location, finances and view of shared ownership.
How the main types of buying help work
First time buyer schemes UK-wide fall into four groups. Savings support, such as a Lifetime ISA, adds a government bonus to money you put aside. Low-deposit mortgages can let you buy with around 5% of the price. Discounted-home schemes reduce the purchase price. Shared ownership and shared-equity schemes lower the amount you fund initially, but another organisation retains a share or financial interest.
Lenders still assess income, spending, debts and credit history. These homes may also have resale conditions, rent or service charges. Compare the complete monthly and long-term cost, not only the deposit.
UK-wide support for first-time buyers
Lifetime ISA
A Lifetime ISA remains one of the most useful forms of first time buyer help UK savers can access. You can contribute up to £4,000 per tax year and receive a 25% government bonus, worth up to £1,000 annually. You must make your first contribution before turning 40.
For a qualifying purchase, the home must cost £450,000 or less, the account must have been open for at least 12 months, and you must buy with a mortgage. A 25% withdrawal charge normally applies if you take it out for another reason. The government began consulting in June 2026 on a future replacement, but current Lifetime ISA rules still apply while that proposal is developed.
95% mortgages
The permanent Mortgage Guarantee Scheme supports participating lenders offering mortgages at 91% to 95% loan-to-value across the UK. This can make a purchase possible with a deposit as small as 5%. It protects the lender rather than paying the buyer, and approval is not guaranteed. A larger deposit may still produce a cheaper mortgage.
First-time buyer schemes in England
First Homes
First Homes are sold to eligible first-time buyers at a discount of at least 30% from market value, with some councils applying 40% or 50%. Household income is capped at £80,000, or £90,000 in London. The discounted price of a new-build First Home cannot normally exceed £250,000, or £420,000 in London, although councils can set lower limits and local priorities.
Shared Ownership
Shared Ownership lets you buy part of a home and pay rent on the remaining share. Initial shares are commonly between 10% and 75%, and the deposit is based on the share you buy rather than the full value. You may be able to purchase more later through staircasing.
Budget for rent, service charges and legal fees. These homes are leasehold, so ask a solicitor to explain repair obligations and resale rules. Our guides to shared ownership costs and buying a leasehold flat are useful next reads when comparing government home schemes.
Buying help in Wales
Help to Buy – Wales supports eligible new-build homes priced up to £300,000. Buyers provide at least a 5% deposit, the scheme can provide an equity mortgage of up to 20%, and a repayment mortgage covers the balance. As of August 2026, the current phase is scheduled to run until September 2026, so confirm deadlines before paying a reservation fee.
Shared Ownership – Wales lets eligible households buy between 25% and 75% of a participating home and pay rent on the rest. The usual household-income limit is £60,000. Homebuy – Wales may also provide an equity loan, often between 30% and 50%, for people meeting local criteria.
Buying help in Scotland
Scotland’s First Homes Fund reopened on 24 June 2026. It can contribute up to £10,000 toward a first home costing no more than £300,000. The Scottish Government takes a percentage equity stake, but there are no monthly payments or interest on it. The stake is normally repaid as a percentage of the property’s value when you sell or trigger repayment.
Scotland also operates LIFT shared-equity routes. Open Market Shared Equity supports eligible buyers purchasing within local price thresholds, while New Supply Shared Equity applies to certain new-build homes from councils or housing associations. These routes mainly support low-to-moderate-income households and priority groups unable to buy without assistance.
Buying help in Northern Ireland
Co-Ownership is Northern Ireland’s main shared-ownership route. You buy the portion of an eligible home you can afford, Co-Ownership buys the balance, and you pay a mortgage on your share plus rent on its share. You can increase your ownership later. From 14 April 2026, the maximum eligible property value is £215,000. Applicants must pass affordability checks and cannot already own property.
A practical comparison
Consider a buyer looking at a £240,000 home with £15,000 saved. A 95% mortgage would require a £12,000 deposit, leaving little for legal fees, surveys and moving costs. A qualifying First Home with a 30% discount would cost £168,000, reducing the mortgage, but suitable properties may be scarce and resale rules apply. A 25% Shared Ownership share would mean funding £60,000, possibly with a deposit of only a few thousand pounds, but rent and service charges must be added.
Ask a broker to model each route using the same assumptions and every monthly charge. Then ask a conveyancer to explain restrictions before you commit. Our first-time buyer deposit checklist can help separate purchase costs from the deposit.
Frequently asked questions
Can I use a Lifetime ISA with another scheme?
Often, yes. It can commonly be combined with First Homes or eligible shared-equity purchases, provided the transaction meets Lifetime ISA rules. Confirm this with the scheme administrator, lender and conveyancer.
Is Help to Buy still available?
The Help to Buy equity-loan scheme in England is closed. Wales still has Help to Buy – Wales, with its current phase scheduled to end in September 2026. Scotland’s older Help to Buy scheme is closed, although the First Homes Fund and LIFT may offer alternatives.
Can two buyers both use a Lifetime ISA?
Yes. If both purchasers are eligible first-time buyers and meet the account and property rules, each can use their own savings and government bonus toward the same purchase.
Which scheme is cheapest overall?
No option is automatically cheapest. Shared ownership can reduce the initial deposit but add rent and service charges. A 95% mortgage provides full ownership but may have a higher rate. Compare total costs over several years, not only completion-day cash.
Choosing the right route
The best buying help UK households can use is the option that solves their actual barrier without creating an unaffordable commitment. Start with your nation, deposit and realistic mortgage capacity, then shortlist schemes available where you want to live. Check current official criteria before reserving, obtain independent mortgage advice and have a conveyancer review every equity, lease and resale condition.