First time buyer schemes 2024

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 2024.

Angela Kerr Director, Editor

For some people, saving a deposit, securing a mortgage or finding the right home at the right price is such a struggle that they are priced out of buying on the open market. If you’re in this situation, 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

The government launched the Mortgage Guarantee scheme in the April 2021, designed to help increase the supply of 5% deposit mortgages by supporting lenders to offer these products through a government-backed guarantee. Lenders using the scheme pay a fee for the Government guarantee which will then compensate them for a portion of their losses if the house is repossessed.

The scheme was due to end in December 2022, but was initially extended until December 2023. However, in the 2023 Autumn Statement, the Chancellor extended it again and the mortgage guarantee scheme will now run until the end of June 2025. 

Things to know about the mortgage guarantee scheme:

Its purpose is to stimulate lenders to offer 95% LTV deals, so the scheme isn’t something you specifically apply for and you may not know if your lender is using it.

The government says any houses (new or old) are eligible for the scheme as long as they cost under £600,000. However, different lenders may have different criteria.

Not all lenders use the mortgage guarantee scheme when offering 95% mortgages. So don’t assume choosing a lender that is taking part in the mortgage guarantee scheme will be the best option for you. You should always speak to a good mortgage broker. They’ll run you through your options and find the best mortgage for you.

To use the scheme you must have a regular income and a good credit rating.

Find out how the mortgage guarantee will work and how to apply.

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 30% discount.

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).
• The scheme is designed to help people get on the housing ladder in their local area. This means that the eligibility criteria is set by the local authority and may differ. For example priority may be given to local key workers.
• There are only a handful of developments that offer First Homes. However, more sites are due to launch across the country with a further 1500 homes for sale by the end of 2021.

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.

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 up an account.

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 on buying your first home and see our guide to First time buyer mortgages.