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Buying your first home can feel challenging, especially when you’re trying to save a deposit or meet mortgage affordability requirements. Fortunately, there are several government-backed schemes and savings products designed to help first-time buyers get onto the property ladder. While some schemes have closed in recent years, others remain available and could make buying your first home more affordable. In this guide, we’ll explain the main government schemes currently available, who they’re suitable for and how they could help you buy your first home.
Several government schemes can help first-time buyers save for or purchase their first home.
The Lifetime ISA remains one of the most valuable ways to save towards your first property.
Shared Ownership allows eligible buyers to purchase a share of a property instead of buying it outright.
Eligibility varies between schemes depending on factors such as income, property value and location.
A mortgage broker can help you understand which schemes may be suitable for your circumstances.
How HTG Mortgages Can Help
At HTG Mortgages, I work with over 120 lenders across the UK, meaning we have access to a wide range of mortgage products to suit all types of borrowers. Whether you’re a first-time buyer or looking to remortgage, we can help you determine how much you can borrow and find the right mortgage for your circumstances.
We also provide ongoing support, regularly checking your options after your mortgage is secured, ensuring that you never miss out on a lower rate.
What Government Schemes Are Available for First-Time Buyers?
There are several government-backed initiatives designed to help people buy their first home. Some help you save a deposit, while others make home ownership more affordable by allowing you to buy a share of a property. Understanding which schemes are still available can help you choose the most suitable route onto the property ladder.
What Is a Lifetime ISA?
A Lifetime ISA (LISA) is one of the most popular government-backed savings products for first-time buyers. You can save up to £4,000 each tax year, and the government adds a 25% bonus, up to £1,000 annually. The savings can then be used towards buying your first home, provided the property and purchase meet the scheme’s eligibility rules.
What Is Shared Ownership?
Shared Ownership allows eligible buyers to purchase a percentage of a property, usually between 10% and 75%, while paying rent on the remaining share. This can reduce the deposit required and make monthly costs more manageable for some buyers. Over time, many buyers choose to purchase additional shares in the property through a process known as staircasing.
Speak to an expert
Whether you’re buying your first home, moving house or remortgaging, HTG Mortgages is here to make the process as simple and stress-free as possible. I’ll compare mortgages from over 120 lenders, guide you every step of the way and help you find the right mortgage for your circumstances.
Are There Any Deposit Schemes Available?
Although the Help to Buy Equity Loan scheme has now closed to new applications, there are still ways to buy a home with a smaller deposit. Many lenders offer 95% mortgages, and some may consider family support or gifted deposits. There are also specific products designed for buyers with limited savings.
Can I Buy a Home with a 5% Deposit?
Yes. Many lenders offer mortgages with a 5% deposit, subject to affordability and lending criteria. While a larger deposit often provides access to better mortgage rates, buying with a smaller deposit is still possible for many first-time buyers.
Can I Use a Gifted Deposit?
Yes. Many first-time buyers receive financial help from parents or close family members through a gifted deposit. Most lenders accept gifted deposits, provided certain conditions are met and the person giving the money confirms it does not need to be repaid.
Which Government Scheme Is Right for Me?
The best option depends on your personal circumstances. For example, if you’re still saving for a deposit, a Lifetime ISA may be particularly valuable. If affordability is your biggest challenge, Shared Ownership could make buying more accessible. A mortgage broker can help you compare your options and identify the most suitable route.
Can a Mortgage Broker Help with Government Schemes?
Absolutely. A mortgage broker can explain how each scheme works, confirm whether you’re eligible, compare mortgage products and recommend lenders that support the scheme you’re using. They can also guide you through the application process and help avoid unnecessary delays.
One thing to know before choosing shared ownership: letting the property out later is heavily restricted. I have covered when it is and is not allowed in can you rent out a shared ownership property.
Need Personal Mortgage Advice?
Every buyer’s situation is different. While this guide explains the general rules, the right mortgage for you depends on your income, deposit, credit history and future plans. If you’d like tailored advice, I’m here to help, with whole-of-market coverage.
