Freedom Isn’t Free UK Personal Finance
Property
First-Time Buyer Schemes UK: Every Option Explained
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 |