For many first time buyers, getting onto the property ladder can feel overwhelming, especially with rising house prices and the end of the original Help to Buy equity loan scheme.
But there’s good news: new government backed schemes and alternative initiatives are now available to help you secure your first home.
From the Mortgage Guarantee Scheme to updated shared ownership options, these programmes are designed to provide financial assistance, reduce upfront costs, and make the home buying process more achievable for those with modest savings.
In this guide, we explain the main first time buyer schemes in 2025, how they work, and what you need to know before applying.
Why Help to Buy Ended and What’s Replacing It
The Help to Buy equity loan scheme closed to new applicants, leaving many wondering how to bridge the gap between savings and the purchase price of their first home.
While existing homeowners already in the scheme will continue under its original terms, new buyers must now turn to alternative government schemes for support.
These new initiatives still aim to assist first time buyers, but often with broader eligibility criteria and more flexibility in the type of property you can purchase.
The Mortgage Guarantee Scheme
The Mortgage Guarantee Scheme is designed to help buyers with a small deposit, as little as 5% of the property’s price.
- How it works: The government provides a guarantee to mortgage lenders on a portion of the loan, encouraging them to offer low deposit mortgages.
- Eligibility criteria: You must be buying a property under a set market value cap (varies by region) and be a UK resident with a suitable credit history.
- Benefits: Lower deposit requirements mean you can buy sooner without years of saving.
- Considerations: Monthly mortgage payments may be higher, and the scheme only applies to repayment mortgages, not interest-only.
Shared Ownership Scheme
The shared ownership scheme lets you buy a share (usually 25%–75%) of a property and pay rent on the remaining portion to a housing association or public sector landlord.
- Key features: You can gradually increase your ownership (a process known as “stair-casing”) until you own the property outright.
- Eligibility: Typically for first time buyers, local residents, and key workers, with limits on household income.
- Advantages: Lower initial deposit and purchase price, as you only buy a share.
- Drawbacks: You’ll still pay rent and service charges, and selling can be more complex.
First Homes Scheme
The First Homes Scheme offers properties at a discount of at least 30% off the market price for local residents and key workers.
- Purpose: To help people stay in their communities and make home ownership more affordable.
- Eligibility: First time buyers with incomes below a set threshold, buying a property under a specific price cap.
- Conditions: The discount applies to all future sales, keeping the home affordable for the next buyer.
Lifetime ISA
While not a property purchase scheme in itself, a Lifetime ISA can help first time buyers save faster for a deposit.
- How it works: You can save up to £4,000 a year, with the government adding a 25% bonus (up to £1,000 per year).
- Best for: Those planning ahead for the buying process and wanting to maximise money saved.
- Conditions: Funds must be used for a first time buyer house purchase under a certain property value or kept until retirement.
Other Local and Specialist Initiatives
Many local councils and housing associations run their own first time buyer support schemes. Examples include:
- Key worker housing with reduced rents.
- Secure tenant purchase options for long-term renters.
- Localised stamp duty relief or tax relief for specific groups.
These are often targeted at local residents and may be linked to new-build developments in the area.
Comparing the New Buyer Schemes
When weighing up your options:
- Check the eligibility criteria carefully, some schemes have income caps or require you to live and work locally.
- Factor in stamp duty land tax rules, including available stamp duty relief for first time buyers.
- Look at the total financial support available, not just the deposit requirement.
- Consider the long-term impact, for example, whether you can eventually own the property outright.
Costs Beyond the Deposit
Even with buyer schemes, remember to budget for additional expenses in the home buying process:
- Legal fees and survey costs.
- Moving costs and initial furnishings.
- Ongoing mortgage payments, service charges, or rent (for shared ownership property).
Government initiatives can help you get onto the property ladder sooner, but you’ll still need a realistic budget to cover all costs.
How Mortgage Brokers Can Help
mortgage broker ‘s can guide you through which schemes you qualify for and connect you with mortgage lenders offering competitive rates.
They’ll also help you find a suitable mortgage product for your situation, factoring in your household income, deposit size, and the scheme’s rules.
Final Thoughts
The end of Help to Buy doesn’t mean the end of first time buyer support.
From the Mortgage Guarantee Scheme to shared ownership and First Homes, there’s a range of government initiatives designed to help you secure a home that fits your budget and needs.
Ready to Find the Right First Time Buyer Scheme for You?
At The Mortgage and Protection Hub, we specialise in helping first time buyers navigate the latest government backed schemes.
We’ll assess your eligibility, connect you with the right lenders, and guide you through the home buying process from start to finish.
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