What first-time buyer schemes are available in the UK in 2026?
As of July 2026, five main first time buyer schemes are live in the UK: the permanent mortgage guarantee scheme (buy with a 5% deposit), the First Homes scheme (30–50% discounts on new builds), shared ownership, the Lifetime ISA and first-time buyer stamp duty relief. Help to Buy closed to new applications in 2023, and Deposit Unlock closed on 30 April 2026.
| Scheme | What you get | Key eligibility | Caps | Status (July 2026) |
|---|---|---|---|---|
| Mortgage guarantee scheme | 95% mortgage with a 5% deposit | First-time buyers and home movers; residential only | Property up to £600,000 | Live — permanent since July 2025 |
| First Homes | 30–50% discount on selected new builds (England) | First-time buyer; income ≤£80k (£90k London); mortgage for ≥50% of price | ≤£250,000 after discount (£420,000 London) | Live |
| Shared ownership | Buy 10–75% of a home, rent the rest | Household income ≤£80k (£90k London) | Deposit typically 5–10% of your share | Live |
| Lifetime ISA | 25% government bonus on up to £4,000/year saved | Open aged 18–39; account open 12+ months | Home up to £450,000 | Live — replacement ISA due ~2028 |
| Stamp duty relief | £0 SDLT on first £300,000 (save up to £5,000) | All buyers must be first-time buyers | Home up to £500,000 (England & NI) | Live |
| Right to Buy | Discount on buying your council home | Secure council tenant, 3+ years public-sector tenancy | Cash cap £16,000–£38,000 by region | Live — further cuts proposed |
| Deposit Unlock | 5% deposit on new builds (industry scheme) | — | — | Closed 30 April 2026 |
| Help to Buy equity loan | Government equity loan on new builds | — | — | Closed to new applications 2023 |
Sources: gov.uk — 2025 Mortgage Guarantee Scheme; gov.uk — First Homes scheme; gov.uk — Lifetime ISA. Figures checked 8 July 2026.
Is there a new Help to Buy scheme in 2026?
No — there is no new Help to Buy scheme in 2026. The Help to Buy equity loan scheme closed to new applications in England in 2023 and the government has not launched a like-for-like replacement. The closest successor is the permanent mortgage guarantee scheme, launched in July 2025, which lets first-time buyers purchase with a 5% deposit — covered in the next section.
If you still hold a Help to Buy ISA (closed to new savers in November 2019), you can keep paying in until 30 November 2029 and claim the 25% government bonus until 1 December 2030. And a new first-time buyer ISA is expected to replace the Lifetime ISA from around April 2028, following the consultation launched in June 2026 — so more government support is planned, just not under the Help to Buy name.
💡 If you read about a “new Help to Buy scheme” online, check the date and the source. As of July 2026, the live low-deposit options are the mortgage guarantee scheme, First Homes and shared ownership — all described below.
Mortgage Guarantee Scheme
The Mortgage Guarantee Scheme encourages lenders to offer 95% loan-to-value mortgages by providing a government-backed guarantee on the portion of the loan above 80% LTV. This means first-time buyers (and home movers) can purchase a property with just a 5% deposit.
The scheme is available on properties worth up to £600,000 and is not limited to first-time buyers, although they are the primary beneficiaries. Several major lenders participate, including Lloyds, NatWest, HSBC, Barclays and Santander. You apply for a 95% mortgage directly through a participating lender—there is no separate application for the scheme itself.
The scheme was made permanent from July 2025 (it was previously a temporary, pandemic-era measure). Under the permanent version, the government guarantees eligible mortgages between 91% and 95% LTV, the guarantee lasts for up to seven years from completion, and Nationwide, Halifax, Virgin Money and TSB have joined the participating lenders. It excludes second homes, buy-to-let and some non-standard construction types, and you must still pass the lender’s normal affordability and credit checks. Source: gov.uk, 2025 Mortgage Guarantee Scheme (checked July 2026).
⚠️ While a 5% deposit gets you onto the ladder, remember that a higher LTV means a higher interest rate and larger monthly payments. You will also have very little equity buffer if property prices fall. Where possible, saving a larger deposit (10% or more) will give you access to significantly better mortgage rates.
How does the First Homes scheme work?
The First Homes scheme sells selected new-build homes in England to first-time buyers at a discount of 30% to 50% below market value. The discount stays with the property forever — when you sell, you must sell at the same percentage discount to another eligible first-time buyer.
- Price cap: no more than £250,000 after the discount (£420,000 in London).
- Income cap: household income of £80,000 or less (£90,000 in London) in the previous tax year.
- Mortgage requirement: you must take a mortgage for at least 50% of the discounted price — the scheme is not for cash buyers.
- Local criteria: councils can prioritise local residents or key workers for the first three months a home is on sale.
Availability depends on what developers are building in your area, so supply is patchy — check with local developers and your council. Full criteria: gov.uk — First Homes scheme.
How does shared ownership work in 2026?
Shared ownership lets you buy a share of a home — between 10% and 75% under the current model (older leases start at 25%) — and pay below-market rent on the remainder to a housing association. Your deposit is typically 5–10% of your share, not of the full property price, which dramatically cuts the upfront cost.
You can increase your share over time (staircasing), and on new-model leases (homes funded from 2021 onwards) you can staircase in 1% instalments each year for the first 15 years with reduced fees and no full valuation. Eligibility requires household income of no more than £80,000 (£90,000 in London). Note that you remain responsible for maintenance and repairs, although new-model leases include a 10-year period during which the landlord contributes towards certain essential repairs. Details: gov.uk — shared ownership scheme. See our shared ownership mortgage guide for how the mortgage side works.
Is the Lifetime ISA still worth having in 2026?
Yes — the Lifetime ISA rules are unchanged as of July 2026. If you are aged 18–39 you can open one and save up to £4,000 per tax year; the government adds a 25% bonus (up to £1,000 a year), paid monthly. The funds can go towards a first home costing up to £450,000, provided the account has been open at least 12 months. Withdrawing for any other reason before age 60 triggers a 25% penalty, which claws back more than the bonus.
The Autumn Budget 2025 announced that the LISA will eventually be replaced by a new first-time buyer ISA, expected from April 2028; a government consultation opened on 23 June 2026. The proposed replacement would scrap the withdrawal penalty, pay the bonus as a lump sum at purchase and remove the upper age limit — but existing LISA holders are expected to be able to keep contributing. Until the new product exists, the LISA remains the main savings boost for first-time buyers. Rules: gov.uk — Lifetime ISA. Read more in our Lifetime ISA guide and our guide to saving for a house deposit.
What happened to Deposit Unlock?
Deposit Unlock closed to new completions on 30 April 2026. The industry-run scheme, backed by the Home Builders Federation, let buyers purchase a new-build home with a 5% deposit through participating lenders such as Nationwide and Newcastle Building Society. Existing mortgage offers made before the closure are being honoured, and completed loans are unaffected. Buyers who would have used Deposit Unlock for a new build can now look at the permanent mortgage guarantee scheme, developer deposit contributions or First Homes instead. See our new-build mortgage guide.
Can council tenants still use Right to Buy in 2026?
Yes, but the discounts are far smaller than they used to be. Since November 2024, Right to Buy maximum cash discounts in England have been cut to between £16,000 and £38,000 depending on the region. Further reform is under way: the Social Housing Bill, introduced to Parliament on 14 May 2026, proposes discounts starting at 5% of the property value, rising 1% per qualifying year to a maximum of 15% (or the cash cap if lower), plus longer minimum tenancy requirements. If you are an eligible tenant considering Right to Buy, the current rules may be more generous than what follows. Right to Acquire remains a smaller-discount equivalent for housing association tenants. Details: gov.uk — Right to Buy.
Do first-time buyers pay stamp duty in 2026?
In England and Northern Ireland, first-time buyers pay no stamp duty on the first £300,000 of a home costing up to £500,000, then 5% on the portion between £300,001 and £500,000 — a maximum saving of £5,000. The relief is all-or-nothing: pay £500,001 or more and you lose it entirely, with standard rates applying to the whole price. These thresholds have applied since 1 April 2025 and are unchanged in 2026 (source: gov.uk — SDLT residential rates, checked July 2026). Scotland and Wales run separate systems with different first-time buyer treatment.
Work out your exact bill with our free stamp duty calculator, and see our first-time buyer stamp duty guide for worked examples.
Which first-time buyer scheme is right for you?
A rough rule of thumb for 2026:
- Small deposit, decent income: a 95% mortgage under the mortgage guarantee scheme keeps things simple.
- Income under £80k and flexible on location: First Homes offers the biggest saving if you can find one locally.
- Priced out of full ownership: shared ownership gets you a foothold with the smallest upfront cost.
- Still saving: open a Lifetime ISA now — the 25% bonus is the best guaranteed return available on deposit savings.
Schemes can often be combined — for example, using a Lifetime ISA to fund the deposit on a mortgage guarantee scheme purchase, with stamp duty relief on top. An FCA-authorised mortgage broker can tell you which combination fits your circumstances and which lenders accept each scheme. Nesto is a free introducer service: tell us what you need and we will match you with a specialist first-time buyer mortgage broker. If you are buying in Lincolnshire, our local page on getting a first time buyer mortgage in Sleaford shows how these schemes stack up against typical local prices. For impartial government-backed guidance, see MoneyHelper’s guide to government home-buying schemes.
First time buyer schemes 2026: FAQs
Is there a new Help to Buy scheme in 2026?
No. The Help to Buy equity loan scheme closed to new applications in England in 2023 and has not been directly replaced. The closest successor in 2026 is the government’s permanent mortgage guarantee scheme, launched in July 2025, which backs 95% loan-to-value mortgages on properties up to £600,000 so buyers can purchase with a 5% deposit.
Can I still buy a home with a 5% deposit in 2026?
Yes. Under the permanent mortgage guarantee scheme, most major lenders — including Halifax, NatWest, HSBC, Barclays, Santander and Nationwide — offer 95% mortgages on properties worth up to £600,000. You still need to pass the lender’s normal affordability and credit checks.
Is the Lifetime ISA being scrapped?
Not yet. As of July 2026 the Lifetime ISA still works as before: save up to £4,000 a year, get a 25% government bonus, and use it on a first home costing up to £450,000. The Autumn Budget 2025 announced a replacement first-time buyer ISA expected from April 2028, with a consultation launched in June 2026, but existing LISA holders will be able to keep contributing.
Do first-time buyers pay stamp duty in 2026?
First-time buyers in England and Northern Ireland pay no stamp duty on the first £300,000 of a home costing up to £500,000, then 5% on the portion between £300,001 and £500,000. If the price exceeds £500,000 the relief is lost entirely and standard rates apply to the whole price. The maximum saving is £5,000.
Can I combine first-time buyer schemes?
Often, yes. You can use a Lifetime ISA towards the deposit on a First Homes property, a shared ownership share or a 95% mortgage under the mortgage guarantee scheme, and first-time buyer stamp duty relief applies alongside all of them (subject to each scheme’s price caps). You cannot usually combine First Homes with shared ownership on the same property.
How can I get help choosing a first-time buyer scheme?
Nesto is a free introducer service: answer a few questions at nesto.co.uk/form/ and we match you with an FCA-authorised mortgage broker who deals with first-time buyer schemes. Nesto does not give regulated financial advice itself — the matched broker does.
Nesto is an introducer, not a lender or adviser: we connect you with FCA-authorised mortgage brokers and do not provide regulated financial advice. Scheme rules and figures on this page are typical/representative, drawn from the dated sources linked above, and were last checked on 8 July 2026. Scheme availability and criteria can change — always confirm current terms on gov.uk or with your broker.