Three main schemes are live for English first-time buyers in 2026: the Mortgage Guarantee Scheme (buy with just a 5% deposit), First Homes (buy a new-build at 30–50% below market value, England only), and Shared Ownership (buy a 10–75% share and pay rent on the rest). They solve different problems — small deposit, high property price, or low overall affordability — so the right one depends on which of those is actually your constraint.
Start with which problem you actually have
These schemes aren't tiers of the same ladder — they're built to solve different, specific problems. Before comparing the details, it's worth being honest about which one actually describes your situation:
- "I have a stable income but a small deposit" — the Mortgage Guarantee Scheme is built for you.
- "Property in my area is expensive relative to my income, and I can be flexible on location" — First Homes might get you a meaningful discount, where it's available.
- "I genuinely can't afford full ownership right now, even with scheme help" — Shared Ownership lets you buy a stake and grow into full ownership over time.
Mortgage Guarantee Scheme
Also referred to as Freedom to Buy, this became a permanent fixture of the market in July 2025, replacing what had been a temporary scheme. It doesn't lend you money directly — instead, the government guarantees part of a participating lender's potential loss on 91–95% loan-to-value mortgages, which makes lenders more willing to offer them in the first place.
You still go through the normal mortgage application and affordability process with a participating lender — this scheme widens which products are available to you, it doesn't relax the underwriting itself.
First Homes
First Homes lets eligible buyers purchase specific new-build properties at a permanent 30–50% discount to market value. The discount stays with the property forever — when it's eventually resold, it must be sold at the same percentage discount to whatever the market value is then, to keep it affordable for the next first-time buyer too.
- England only — this scheme doesn't operate in Scotland, Wales, or Northern Ireland.
- The discounted price is capped at £250,000 (£420,000 in London) after the discount is applied.
- Availability is genuinely patchy — only councils that have adopted the scheme have First Homes properties, and there's no single national database showing every available home.
First Homes can offer the single biggest saving of any scheme on this page, but only if you're flexible about location and can find a participating development. Don't plan around it until you've actually confirmed availability in the areas you're considering — treat it as a bonus if you find one, not a starting assumption.
Shared Ownership
Shared Ownership lets you buy a share of a property — typically between 10% and 75% — through a housing association, paying a mortgage on your share and rent on the remainder. Over time, you can buy further shares in a process called "staircasing," working toward full ownership if you choose to.
- Available across England, Wales, and Northern Ireland (Scotland runs shared equity schemes administered differently).
- In England, eligibility is generally capped at £80,000 household income (£90,000 in London).
- Properties are leasehold — ground rent and service charges apply alongside your mortgage and rent, so budget for all three, not just two.
Because your deposit and mortgage are calculated against your share, not the full property value, this is often the scheme with the lowest upfront cost of the three — genuinely useful if affordability, not deposit or property price alone, is your main constraint.
Combining schemes
Some of these can be used alongside other support — a Lifetime ISA, for instance, can typically be used toward a deposit regardless of which scheme you're buying through, as long as the property itself meets the LISA's own £450,000 price cap. Eligibility rules are set independently by each scheme, so always check the specific combination with a broker rather than assuming.