If you are looking to buy your first home, there are plenty of options available that will help you afford the mortgage sooner than you may have initially thought.
These options are typically called first-time buyer schemes and are designed for those who may need an extra helping hand with buying their first home. The home-buying process can be fairly complicated, which is why making this simpler can be invaluable.
In this blog post, we are going to be discussing the ins and outs of first-time buyer schemes and will provide you with more information on the schemes that you should know about.
What Are First-Time Buyer Schemes?
A first-time buyer scheme is typically a government-backed initiative that aims to provide financial support to people who are looking to buy their first home. This is done to make homes more accessible to the general public and younger people.
The main features of these schemes are, of course, the greatly discounted prices of the house you are planning to buy. These discounts can range in quantity depending on your eligibility and the scheme you opt for.
If you have found the perfect first home, our team can help you with all of the logistics surrounding your first-time buyer mortgage. Please call us if you need any assistance.
First Time Buyer Schemes in The UK You Should Know About
There are several schemes available to people in the UK and Ireland that are incredibly useful for people buying their first homes. Below, we have compiled a list of some of the best first-time buyer schemes that we believe could help you in your search for your own home.
First Homes Scheme
This scheme offers first-time buyers in England the opportunity to purchase a home at a discount of 30% to 50% off the market value. The home must be a new build or a property previously bought through the scheme.
The eligibility for this scheme requires buyers to be first-time purchasers with a household income lower than £80,000 per year (£90,000 in London). Buyers must secure a mortgage for at least 50% of the discounted purchase price, and the property must be their only residence.
→ Learn more about the first homes scheme.
Lifetime ISA
A lifetime ISA is a type of savings account that is designed to help people save up for their first homes. When saving, you will be able to deposit up to £4,000 per year and the Government will add an extra 25% on top of your savings, totalling a maximum of £5,000 every year.
To be eligible for this scheme, the property that you purchase will need to be lower than £450,000. This should not be an issue for first-time buyers, as most people are not able to afford a home worth much more than this for their first home.
→ Learn more about a Lifetime ISA.
Shared Ownership
The shared ownership scheme allows buyers to purchase a share of a property and pay rent on the remaining share. It reduces the size of the mortgage and deposit needed. Buyers can gradually purchase additional shares, known as staircasing, up to full ownership. Eligibility typically requires an annual household income of less than £80,000 (£90,000 in London).
→ Learn more about the shared ownership scheme.
Right to Buy/Right to Acquire
The Right to Buy scheme allows secure tenants of councils and some housing associations in England to buy their homes at a discount. To be eligible, the property must be the tenant’s only or main home, be self-contained, and the tenant must have had a public sector landlord for at least three years, although these do not need to be consecutive years.
The discount available can be up to £136,400 in London and £102,400 in the rest of England. The discount is based on the length of time the tenant has spent as a public sector tenant.
→ Learn more about the right to buy scheme.
The Difference Between Each Help to Buy Scheme
Now that we have looked into what each Help to Buy scheme is available, let’s break it down further and look into the differences between them all:
| Help To Buy Scheme | Benefits | Maximum Property Price | Who’s Eligible? |
| First Homes Scheme | Up to 30%-50% discount on new builds | Price set by the local council | First time buyer providing the household income is below £80k (90k for London residents) |
| Lifetime ISA | 25% bonus on savings, earn £250 per £1k | £450,000 | Must be aged between 18-39 and saving for your first home |
| Shared Ownership | Buy 25%-70% of the home and pay rent on the remaining % | The maximum price is dependent on the provider | First time buyer providing the household income is below £80k (90k for London residents) |
| Right to Buy/Acquire | Buy a council house at a discounted rate | Price set by the local council | To apply, each person must have 3 years of eligible tenancy |
What First-Time Buyer Help is Available for People With Disabilities?
The Property Ownership for People with Long-Term Disabilities (HOLD) initiative aims to help people with long-term disabilities own a property through a Shared Ownership arrangement.
This effort is designed exclusively for persons whose requirements are not satisfied by conventional homeownership plans, such as a ground-floor residence. While military members have preferred access, the HOLD programme is accessible to qualified candidates throughout England.
Furthermore, local governments may create their own shared ownership home-building plans, with priority groups defined depending on local housing requirements.
To be eligible for HOLD, you must have long-term disability and unmet housing needs.
→ Learn more about the HOLD programme.
Top Tips Every First-Time Buyer Needs to Be Aware of to Avoid These Common Mistakes
There are several things that you should be aware of as a first-time buyer, some of which you may already know, but it is still important to fully consider these aspects before you go ahead with your mortgage acquisition. Let’s take a look:
1- Deposit Requirements
Generally, you need at least a 5% to 10% deposit of the property’s purchase price. A larger deposit can provide access to better mortgage deals with lower interest rates and monthly payments.
2- Budgeting and Affordability
It’s crucial to assess your financial situation, including income, outgoings, and savings. Consider all costs, including mortgage repayments, bills, and maintenance.
3- Loan-to-Value (LTV) Ratio
This is the amount you borrow compared to the property’s value. A lower LTV often results in better mortgage terms, so saving for a larger deposit can be beneficial.
4- Credit Check
Conduct a credit check on yourself to understand your creditworthiness. Lenders will assess your credit history as part of the mortgage application process. Don’t worry if your credit score isn’t the best, as we can help! Check out our top tips for getting your first mortgage with bad credit.
5- Additional Costs
Be prepared for additional costs such as arrangement fees, legal fees, and insurance. These can add up, so factor them into your budget. Here are the average costs of these for 2025:
- Mortgage Arrangement Fee – £2,000 on average
- Legal Fees (Freehold) – £1,926 on average
- Legal Fees (Leasehold) – £2,687 on average
- Annual Home Insurance – £272
This is £4.2k on average in additional costs.
6- Seek Professional Advice
Consider consulting with a mortgage advisor or broker to navigate the mortgage process and find the best deals.
Looking to Buy Your First Home? Get Advice Today!
Let us help you take the first steps towards becoming a homeowner. Now that you know about all of the first-time buyer schemes that are available, you may even have a rough idea of which one you want to go for.
Here at JG Mortgage Services Ltd, our team are here to help and guide you on your journey towards buying your first home. Our mortgage advisers specialise in helping first-time buyers and are here to offer support and educate you on the best way forward.
Whilst making the decision to buy your first home is exciting, we understand that everything involved can be daunting and that is why we are here to help every step of the way.
We aim to provide a stress-free approach to buying your first home by tailoring the service to your specific mortgage needs. Join our hundreds of happy customers today and get in touch with our team.
Call us on 01244 738422 or email us at info@jg-mortgage.com, and we will be happy to answer any questions you may have.
