Reference Guide

First-Time Buyer Schemes UK: Every Option Explained

Quick answer

UK first-time buyers can combine several schemes. A Lifetime ISA adds a 25% bonus on up to £4,000 a year, First Homes offers 30-50% off a qualifying new-build, Shared Ownership lets you buy a 10-75% share, the 2025 Mortgage Guarantee Scheme backs 5% deposits, and stamp duty relief applies up to £500,000.

UK first-time buyer schemes at a glance (2026)

Scheme	What you get	Key limit or catch
Lifetime ISA	25% government bonus on up to £4,000 saved a year (max £1,000 a year)	Home must cost £450,000 or less; a 25% charge applies if you withdraw for anything else
First Homes	30-50% off the market price of a qualifying new-build, for local first-time buyers	Price after discount capped at £250,000 (£420,000 in London); limited stock
Shared Ownership	Buy a 10-75% share of a home and pay rent on the rest; buy more shares later (staircasing)	You pay rent plus mortgage, and most are leasehold with service charges
2025 Mortgage Guarantee Scheme	Lenders are backed to offer 95% mortgages, so a 5% deposit is enough	Home must cost £600,000 or less; you still pay the higher rate that comes with 95% borrowing
First-time buyer Stamp Duty relief	No Stamp Duty on the first £300,000, then 5% on the slice up to £500,000	No relief at all if the purchase price is above £500,000

Step by step

1
Check what you can borrow
Your income, not your deposit, sets the ceiling. Most lenders cap borrowing at around 4.5 times income. Work out that number before you do anything else, because it decides which schemes are even relevant.
2
Save the deposit in the right wrapper
Aim for at least 5%, ideally 10% or more to reach cheaper rates. If your target home costs £450,000 or less, a Lifetime ISA adds a 25% bonus on up to £4,000 a year.
3
Get an Agreement in Principle
This is a lender's provisional statement of what it will lend, based on a soft credit check. Estate agents often want to see one before they take your offer seriously.
4
Match a scheme to your situation
First Homes or Shared Ownership if the open market is out of reach; the 95% mortgage guarantee if your deposit is small; the Lifetime ISA bonus if you are buying below £450,000.
5
Make an offer and instruct a conveyancer
Once an offer is accepted, a solicitor or conveyancer handles searches, contracts and Land Registry. Budget roughly £1,000 to £2,000 in legal fees plus survey costs.
6
Complete and claim your reliefs
On completion your solicitor files the Stamp Duty return and applies first-time buyer relief, and any Lifetime ISA funds (savings plus bonus) are released to your solicitor toward the purchase.

The UK has no single first-time buyer grant, but it does have a handful of schemes that each chip away at a different part of the problem: the deposit, the purchase price, or the size of mortgage a lender will offer you. The table below sets out every current option, what it actually gives you, and the catch attached to each.

Which one fits depends on the wall you are actually stuck behind. If your income, rather than your savings, is what caps your budget, read why the deposit isn't the real barrier for first-time buyers first. If you are still deciding whether to buy at all rather than keep renting, start with the rent vs buy equation. For weighing a Lifetime ISA against a pension over the long term, see LISA vs SIPP: when the Lifetime ISA actually wins, and for the mortgage products themselves, UK mortgage types explains your options.

Frequently asked questions

What government schemes are available for first-time buyers in the UK?

The main ones are the Lifetime ISA (a 25% savings bonus), First Homes (a 30-50% discount on selected new-builds), Shared Ownership (buy a 10-75% share and rent the rest), the 2025 Mortgage Guarantee Scheme (which backs 95% mortgages), and first-time buyer Stamp Duty relief. There is no single cash grant.

Can I still use Help to Buy?

No. The Help to Buy equity loan closed to new applications in October 2022, with final completions in 2023. The current equivalents are First Homes, Shared Ownership and the 2025 Mortgage Guarantee Scheme. The Help to Buy ISA is also closed to new savers; the Lifetime ISA replaced it.

What is the First Homes scheme and who qualifies?

First Homes gives eligible local first-time buyers 30-50% off the market price of a qualifying new-build. After the discount the home must cost no more than £250,000, or £420,000 in London. The discount passes to every future buyer, and councils can set local income and connection rules.

How does Shared Ownership work?

You buy a share of a home, usually between 10% and 75% of its value, and pay rent to the landlord on the share you do not own. You can buy more shares later, called staircasing, which lowers your rent. Most Shared Ownership homes are leasehold and carry service charges.

Do first-time buyers pay stamp duty in the UK?

In England and Northern Ireland, first-time buyers pay no Stamp Duty on the first £300,000 and 5% on the portion up to £500,000. If the property costs more than £500,000, first-time buyer relief does not apply and standard rates are charged on the whole price.

Sources

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General information, not financial advice. Tax rules and figures can change; check the current position on gov.uk before acting.