First time buyer schemes 2025

There are a number of government home buying schemes available to help you get on the property ladder including Shared Ownership and First Homes. See which schemes you could be eligible for in 2025.

Why use first time buyer schemes?

Getting on the property ladder can be extremely difficult. In fact, our research found the challenges facing first time buyers top the list of housing concerns among UK adults in 2025. These include getting on the ladder (81%), house prices (81%) and saving a deposit (79%).

If you’re finding that saving a deposit, securing a mortgage or finding the right home at the right price is such a struggle that you are priced out of buying on the open market, it is worth looking into the Government first time buyer schemes on offer to help you get on the property ladder.

Help to Buy: Mortgage Guarantee Scheme

A new, permanent mortgage guarantee scheme was launched in July 2025 to replace the previous, temporary mortgage guarantee scheme which closed in June 2025.

The scheme is basically the same though, working behind the scenes to encourage lenders to offer 95% mortgages. So the scheme isn’t something you specifically apply for and you may not know if your lender is using it.

However, many lenders already offer 95% mortgages without using the mortgage guarantee scheme. So whether or not a lender uses the scheme shouldn’t affect your decision – always shop around to find the best mortgage deal. The easiest way to do this is to get a fee-free mortgage broker to do the hard work for you.

The new permanent mortgage guarantee scheme was announced in Labour’s 2024 election manifesto and was referred to as the Freedom to Buy scheme.

The original mortgage guarantee scheme was launched in 2021 and designed to give lenders a government-backed guarantee to encourage them to offer 95% mortgages after they’d all but disappeared during the pandemic.

More than 53,000 mortgages have been completed with help from the mortgage guarantee scheme, according to the Government’s Mortgage Guarantee Scheme Quarterly Statistics published in May 2025.

Lifetime ISA

A Lifetime ISA, or LISA, is a type of account designed to encourage people to save for their first home or their retirement.  You can save up to £4,000 a year and the government will top this up with a 25% bonus.

Find out more about the Lifetime ISA and whether you should open an account.

Help to Buy: Equity Loan (2021 – 2023)

The Help to Buy Equity Loan scheme (2021-2023) ended on 31st March 2023 and closed to new applicants from 31st October, 2022. The scheme let you buy a new build home with a 5% deposit. Users of the scheme could borrow an equity loan from the government of up to 20% of the property’s value, or up to 40% if the property was in London.  See our guide for more advice about what will replace Help to Buy.

Shared Ownership

Shared ownership allows buyers who meet the eligibility criteria to secure a shared ownership mortgage to buy a share (usually 25%-75%) of a property and pay rent on the remaining share to the housing association or private developer that owns the building. Rent is charged at a discounted rate (usually 2.75% of the property value per year). Buying is more affordable because you can start by buying as little as a 25% share in a property and your deposit can be 5% of the price of that share, rather than the whole property. Be aware that properties are usually leasehold and you may have to pay a monthly service charge and contribute to maintenance fees for major works. Find out more about Shared Ownership.

First Homes

The First Homes scheme, launched in June 2021, gives first-time buyers the opportunity to buy their home at a discount of at least 30%.

What you should know about First Homes:

• It’s only available to first time buyers in England buying a new property.
• Purchasers must also have a household income of less than £80,000 (or £90,000 in London).
• This first time buyer scheme is designed to help people get on the housing ladder in their local area. This means that the eligibility criteria are set by the local authority and may differ. For example priority may be given to local key workers.
• First Homes availability is very limited. In the absence of a centrally held database of all properties available under the First Homes scheme, we’ve pulled together a list of some of the First Home houses for sale up and down the country in 2025.

Find out where in England you can find First Homes and everything else you need to know in our guide on First Homes.

Get free advice from L&C mortgage brokers to find out what government scheme might be best for you

Help to Build

This scheme is to help self and custom builders get onto the housing ladder through lower deposit mortgages.  When the build has been completed, a government backed loan is made available, similar to the Help to Buy: Equity Loan scheme. Find out more about the Help to Build Scheme and how to apply.

Rent to Buy

You can rent a newly built home with the intention to buy, thanks to this government scheme. See if Rent to Buy is the right scheme for you

Right to Buy

If you live in a council house or flat you may be able to buy your home at a discount under the right to buy scheme. The discount depends on where you live, how long you have lived there and whether you live in a house or flat. Read more about right to buy

Armed Forces Home Ownership Scheme

The Armed Forces Home Ownership pilot scheme (AFHOS) has now closed.

HOLD or Home Ownership for people with Long term Disabilities

HOLD is a specially tailored option to assist people with long term disabilities to purchase a home on a shared ownership basis. Find out more about HOLD

Schemes in Wales and Scotland

There are similar schemes open in Wales, Scotland and Northern Ireland

For more advice, see buying your first home and our guide to First time buyer mortgages.