Nearly four out of five UK adults say saving a deposit is one of the biggest barriers to buying a home, according to recent research. That figure — 79% of people surveyed — tells you something important: the problem isn’t just high house prices, it’s the sheer difficulty of getting that first lump sum together. I’ve been writing about the UK housing market for years, and this question comes up more than any other: “What schemes are actually still running, and which ones are worth my time?” The answer changes faster than most people realise.
There’s a lot of outdated advice floating around. The old Help to Buy Equity Loan in England closed back in 2023, yet people still ask me about it. What’s actually available right now is a mix of national schemes, regional programmes, and developer incentives. Some are well-known, others fly under the radar. If you’re a first-time buyer in 2026, knowing which ones apply to you could save you tens of thousands of pounds. Here’s what you actually need to know.
How the main schemes actually work
The most important thing to understand is that these schemes aren’t interchangeable. Each one suits a different situation, and picking the wrong one can cost you. Let me walk through the big ones.
The Mortgage Guarantee Scheme is probably the most widely available option. It’s not a loan or a grant — it works behind the scenes. The government guarantees part of the mortgage, which makes lenders more willing to offer high loan-to-value deals. More than 53,000 mortgages have been completed with its help. What that means for you: if you’ve got a 5% deposit saved, this scheme opens up mortgage options that might otherwise not exist. It applies to both new builds and existing homes, which gives you more flexibility than some other schemes.
The First Homes Scheme is different. It’s England-only and offers a discount of at least 30% on new build homes, going up to 50% in some areas. That discount is locked into the property forever — when you sell, the next buyer gets the same discount. Your household income must be under £80,000 (or £90,000 in London), and the discounted price can’t exceed £250,000 (£420,000 in London). You also need a mortgage covering at least 50% of the discounted price. On a property worth £300,000 at full market value, a 30% discount means you pay £210,000. That’s a £90,000 saving. Your mortgage and deposit are calculated on the lower price, which makes monthly payments significantly more manageable.
Shared Ownership works on a different principle entirely. You buy a share of a home — typically between 10% and 75% — and pay rent on the remaining portion. Your deposit is 5% of the share price, not the full property value. If you’re buying a 25% share of a £200,000 home, your deposit is based on £50,000, not £200,000. That’s a £2,500 deposit instead of £10,000. You can also “staircase” — buy additional shares over time until you own 100%. The trade-off is that you’ll have ongoing rent and service charges, and the properties are usually leasehold. It’s available UK-wide on new builds and some resale properties.
Why these schemes matter more than ever
The numbers tell a stark story. 81% of UK adults say getting on the property ladder is a top concern, and the same percentage worry about house prices. These aren’t niche anxieties — they’re the dominant financial stress for a huge portion of the population. What I’ve noticed over the years is that many people assume they don’t qualify for any help, so they never check. That’s a costly assumption.
Consider a typical scenario: a couple in their early thirties renting in the South East. They’ve got about £15,000 saved, which feels like nothing against local house prices. Through the Mortgage Guarantee Scheme, that £15,000 could be a 5% deposit on a £300,000 home. Without the scheme, many lenders wouldn’t touch a 95% mortgage. The difference isn’t marginal — it’s the difference between owning and continuing to rent indefinitely.
Regional variations matter too. In Wales, the Help to Buy Wales scheme offers an equity loan of up to 20% on new builds, meaning you only need a 5% deposit and a 75% mortgage. In Scotland, the LIFT programme (Low-cost Initiative for First-Time Buyers) takes a shared equity stake in the property. Northern Ireland has Co-Ownership, which lets you buy between 50% and 90% of a home. These aren’t minor variations — they’re fundamentally different products that suit different financial situations. If you’re not looking at what’s available in your specific region, you’re probably missing something.
Where people go wrong with purchase incentives
I see the same patterns every year. People either assume schemes don’t apply to them, or they chase the wrong one. Here are the most common mistakes.
Assuming the old Help to Buy Equity Loan is still available
This is the biggest one. The Help to Buy Equity Loan in England closed to new applicants on 31st October 2022, and all completions had to be finalised by March 2023. Yet I still get emails from people asking about it. If you’re in England, that scheme is gone. The replacement is the Mortgage Guarantee Scheme, which works differently — it’s a guarantee to lenders, not an equity loan to you. Don’t waste time chasing a closed door.
Ignoring the Lifetime ISA because of the withdrawal penalty
The Lifetime ISA gives you a 25% government bonus on up to £4,000 saved per year. That’s up to £1,000 free money annually. But there’s a catch: if you withdraw the money for anything other than buying your first home or retirement, you pay a 25% penalty. That scares some people off entirely. What I’d say is this: if you’re certain you want to buy a home, the LISA is one of the best savings vehicles available. The bonus is guaranteed, unlike investment returns. Just don’t put money in unless you’re committed to using it for a house or retirement.
Overlooking developer incentives
Government schemes get all the attention, but developers often offer significant help too. Some builders offer 5–10% deposit contributions, effectively topping up your savings. Others cover mortgage payments for the first 6–12 months. Part exchange schemes let developers buy your current home and use its value as part payment toward a new property. These aren’t advertised as loudly as government schemes, but they can be just as valuable. If you’re looking at new builds, always ask what incentives the developer is offering. The answer might surprise you.
Not checking regional schemes
England gets most of the coverage, but Scotland, Wales, and Northern Ireland have their own programmes. Scotland’s LIFT scheme, Wales’s Help to Buy equity loan, and Northern Ireland’s Co-Ownership all work differently from anything available in England. If you live outside England and you’re only looking at national schemes, you’re probably missing a better option. Check your devolved government’s housing website before you do anything else.
→ Scroll right to see all columns
| Scheme | Region | Key Feature |
|---|---|---|
| First Homes | England | 30–50% discount on new builds, stays with property forever |
| Shared Ownership | UK-wide | Buy 10–75% share, pay rent on the rest |
| Help to Buy Wales | Wales | Up to 20% equity loan on new builds |
| LIFT (Scotland) | Scotland | Shared equity stake from Scottish Government |
| Co-Ownership | Northern Ireland | Buy 50–90% share, buy more over time |
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How to choose the right scheme for your situation
There’s no single best scheme. The right one depends on your income, location, savings, and how much risk you’re comfortable with. Here’s how to work through it.
Start with your deposit size
If you’ve got a 5% deposit saved, the Mortgage Guarantee Scheme is your most straightforward option. It works on both new builds and existing homes, so you’re not limited to new developments. If you’ve got less than 5%, Shared Ownership might be your only route — your deposit is based on the share price, not the full property value. A 5% deposit on a 25% share of a £200,000 home is just £2,500. That’s achievable for many people who can’t reach the £10,000 needed for a full purchase.
Check your local eligibility for First Homes
First Homes is only available in England, and local councils set their own eligibility criteria. They often prioritise key workers, military personnel, or people with a local connection. Your household income must be under £80,000 (£90,000 in London), and the discounted price can’t exceed £250,000 (£420,000 in London). You also need a mortgage covering at least 50% of the discounted price. If you meet those criteria, the 30–50% discount is hard to beat. The discount stays with the property forever, which means you’re not just helping yourself — you’re keeping the home affordable for the next buyer too.
Consider the Lifetime ISA for long-term saving
If you’re not ready to buy yet but know you will be within a few years, open a Lifetime ISA now. You can save up to £4,000 per year, and the government adds 25%. That’s £1,000 free money each year. Over five years, that’s £5,000 in bonuses on £20,000 saved. The key is to open it as early as possible — the bonus is paid monthly, so the sooner you start, the more you benefit. Just remember the withdrawal penalty if you change your mind.
Look at developer incentives before you commit
Before you sign anything on a new build, ask the developer what incentives they’re offering. Deposit contributions of 5–10% are common from major builders like Persimmon, Bellway, and Barratt Homes. Some offer mortgage payment contributions for the first 6–12 months. Part exchange schemes can be particularly useful if you already own a home and want to move. These incentives aren’t always advertised, so you have to ask. A good property lawyer can help you review the terms and make sure you’re not missing any hidden costs.
Don’t forget the emerging options
Some lenders are starting to offer innovative products. Lloyds Banking Group has announced a £5,000 deposit mortgage for first-time buyers on properties up to £300,000. That’s effectively a 1.67% deposit on a £300,000 home. Shared ownership, new builds, and gifted deposits aren’t eligible, but for the right buyer, it could be a game-changer. Track record mortgages are another emerging option — some lenders now consider your rental payment history as proof of affordability. If you’ve been renting for years and paying on time, that history could help you qualify for a mortgage you wouldn’t otherwise get.
Frequently asked questions
Can I use the Lifetime ISA and First Homes together? ▾
What happens if I sell a First Homes property? ▾
Is Shared Ownership cheaper than renting in the long run? ▾
Do I need a solicitor to apply for these schemes? ▾
What if my income is above the First Homes threshold? ▾
Can I use the Mortgage Guarantee Scheme on any property? ▾
Your next move
The single most important step is to check what’s available in your area and for your income level. Don’t assume you don’t qualify — the eligibility criteria are broader than most people think. Start with the Lifetime ISA if you’re saving, check the Mortgage Guarantee Scheme if you’ve got a 5% deposit, and look at First Homes or Shared Ownership if you’re in England and meet the criteria. If you’re in Scotland, Wales, or Northern Ireland, check your devolved government’s schemes first — they may offer better terms than the national options.
If this was useful, you might also want to read our guide to affordable UK locations.
Sources and Further Reading
How to assess financial risks when buying a UK home — A practical look at the hidden costs and risks that first-time buyers often miss.
The 2026 Guide to the Key Schemes Helping Buyers Get on the Property Ladder. OnTheMarket, 2026.
Government Schemes to Help Buy a Home. HomeOwners Alliance, 2026.
Government Schemes for First-Time Buyers. New Builds, 2026.
