Every Government Scheme for First-Time Buyers in 2026: Compared and Ranked

This guide is for information only and is not regulated mortgage or financial advice. Scheme rules change; check the official source before applying. Your home may be repossessed if you do not keep up repayments on your mortgage.

The four major schemes at a glance

1. Mortgage Guarantee Scheme

What it is: A government guarantee that supports lenders offering 95% LTV mortgages. The scheme indemnifies the lender against a portion of losses on high-LTV mortgages, encouraging banks to lend at 95% LTV without pricing the risk prohibitively.

Status (2026): Made permanent on 1 July 2025. Most major UK lenders participate (Halifax, NatWest, HSBC, Barclays, Santander, Nationwide, Virgin Money, TSB, Co-operative).

What you do: Apply for a 95% LTV mortgage at a participating lender. You don't apply to the scheme separately - it's invisible from your perspective.

Trade-offs: 95% LTV rates are higher than at 90% LTV. The scheme doesn't relax underwriting, so you still need to pass affordability tests at the high LTV.

Best for: First-time buyers with 5% deposit, clean credit, stable income. The default option for most FTBs in 2026.

Detailed guide: 95% LTV and the Mortgage Guarantee Scheme.

2. First Homes

What it is: A 30-50% discount on a new-build property, available to first-time buyers in England only. The discount stays attached to the property (covenant on title) so future buyers also get it - a permanent affordability mechanism, not a one-off subsidy to the original buyer.

Status: Ongoing council-managed allocation. Each local authority sets its own scheme parameters and waiting list.

Eligibility:

• First-time buyer (HMRC definition).
• Household income under £80,000 (£90,000 in London).
• Mortgage funding at least 50% of the discounted price.
• Local-connection priority (residents, key workers, military veterans typically jump the queue).
• Maximum discounted price £250,000 (£420,000 in London).

What you do: Find First Homes properties via your local council's housing portal or new-build developer lists. Apply through the council allocation process. Mortgage application then proceeds against the discounted price.

Trade-offs: Restricted resale (the discount stays attached, so you only ever sell to another first-time buyer at the same discount). Limited availability — most councils have small allocations. Mortgage product range is narrower than for standard purchases.

Best for: FTBs with a local connection to areas with active First Homes allocations and income within the cap. The 30%+ discount usually outweighs the resale restriction unless you expect to sell within 5 years.

Detailed guide: First Homes Scheme guide.

3. Shared Ownership

What it is: Buy a share of a property (typically 10-75%) and pay subsidised rent on the share you don't own. The provider is usually a housing association. You can "staircase" later by buying additional shares, often up to 100% ownership.

Status: Ongoing across all four UK nations under different specific programmes: Affordable Homes Programme (England), Open Market Shared Equity (Scotland), Homes for Wales, and Co-Ownership (Northern Ireland).

Eligibility:

• Household income under £80,000 (£90,000 in London).
• First-time buyer, previous shared ownership leaseholder, or recent divorcee returning to the market.
• Allocation by housing association, with local-connection priority typical.

What you do: Apply to a housing association for a specific property. Take a Shared Ownership mortgage on your share (specialist lenders required — Halifax, Nationwide, Leeds BS, and Yorkshire BS are active in this market).

Trade-offs: The hidden costs are real. You pay rent on the share you don't own, ground rent, service charges (often £200-£400/month), buildings insurance, and repairs on 100% of the property even if you only own 25%. Selling your share is restricted (housing association usually has first refusal). Staircasing means revaluation fees each time you buy more.

Best for: FTBs in expensive areas (London, the South East) who couldn't otherwise afford to own at all, and who plan to staircase to 100% over time. Less attractive if you'll move within 5 years.

Detailed guide: Shared Ownership: hidden costs explained.

4. Lifetime ISA

What it is: A savings product where the government adds a 25% bonus on contributions up to £4,000 per tax year. The bonus is paid monthly. Funds can be withdrawn without penalty to buy a first home up to £450,000, or at age 60 for retirement.

Status: Available to UK residents aged 18-39 to open; can be used for a first home up to age 50. HMRC has confirmed a replacement product is planned for April 2028 (specifically for first-time buyers); existing LISA holders will continue under the LISA rules.

What you do: Open a LISA (cash or stocks-and-shares) with a participating provider — Moneybox, Plum, AJ Bell, Hargreaves Lansdown, Skipton (cash), and others. Contribute up to £4,000 per tax year. The government adds £1 for every £4 you put in.

Trade-offs: £4,000/year contribution cap. 25% withdrawal penalty for non-house-purchase, non-retirement withdrawals (more punitive than it looks — it's penalty on contributions + bonus). £450,000 property cap means high-cost-area buyers may need to use the LISA before prices push above.

Best for: Every first-time buyer should have one if they're under 40. £1,000/year of free money is unmissable, and the cash LISA option means it's essentially zero-risk for deposit-saving.

Detailed guide: Lifetime ISA for first-time buyers.

The Lloyds 98% LTV product (commercial, not a scheme)

From 18 May 2026, Lloyds Banking Group accepts a flat £5,000 deposit on a 98% LTV first-time buyer mortgage. This is not a government scheme — Lloyds takes the full risk and prices accordingly. Rate is higher than 95% LTV equivalents. Worth considering if a £5,000 deposit is all that's holding you back and the higher monthly cost still fits affordability.

Devolved schemes worth knowing

• Scotland — Open Market Shared Equity (OMSE): government takes 10-40% equity stake on an open-market property purchase. Income-tested. Repaid when you sell or staircase.
• Wales — Help to Buy Wales: equity loan of up to 20% on new-build properties up to £300,000 (extended through 2026).
• Northern Ireland — Co-Ownership: housing-association-led shared ownership; lower entry deposit; widely accessed.
• Forces Help to Buy: interest-free loan up to 50% of salary (max £25k) for service personnel. Separate from civilian schemes.

Closed schemes you may still hear about

• Help to Buy Equity Loan — closed to new applications 31 March 2023. Existing borrowers continue under original terms; interest at the BoE base rate + 2% kicks in from year 6.
• Right to Buy — still active for council tenants in England with restrictions; discounts reduced in 2024.

Stacking schemes

Which combinations work:

• LISA + Mortgage Guarantee Scheme (any combination).
• LISA + First Homes (LISA funds the deposit; First Homes provides the discount).
• LISA + Shared Ownership (LISA funds your share's deposit).
• Mortgage Guarantee Scheme + Shared Ownership (95% LTV on your share).
• ✗ First Homes + Shared Ownership (one scheme per property only).
• ✗ Help to Buy + anything new (Help to Buy is closed for new applications).

Decision matrix

What to do next

Open a Lifetime ISA today if you don't have one and you're eligible. Use the affordability calculator to see what borrowing your income supports under the Mortgage Guarantee Scheme. Check your council's First Homes listings if you qualify. And when you're ready to find a mortgage, get matched with a broker who can place your application against the scheme route that fits.