Getting on the property ladder is a challenge for many, with rising house prices and higher living costs making it difficult to save for a deposit. The good news is that in 2025 there are several government schemes designed to support first-time buyers. Understanding these options can help you work out whether you qualify and which route might make sense for you.
Why government support matters
First-time buyers often face stricter affordability checks and need larger deposits compared with repeat buyers. Schemes backed by the government aim to reduce these barriers, either by lowering the deposit required or by offering discounts on eligible homes.
If you’re looking into your options, our team can help arrange the right first-time buyer mortgage deal for your circumstances.
Key government schemes in 2025
1. First Homes Scheme
The First Homes Scheme offers new-build properties at a discount of at least 30% compared with market value. The discount is applied automatically, and the home remains discounted for future buyers.
- Available only to first-time buyers
- Income caps apply (typically £80,000 outside London, £90,000 in London)
- Local councils can set additional eligibility rules
First Homes launched in 2021 through national policy and is delivered locally by councils and developers. You can learn more about the First Homes scheme in the Government’s first-time buyer’s guide https://www.gov.uk/first-homes-scheme.*
You apply through the developer or selling agent who will check eligibility, gather documents, and work with the local council for approval.
It is highly recommended to use a mortgage broker for the First Homes Scheme as it has unique requirements. A broker can help you find a suitable mortgage deal, navigate the application process, and access expert advice to ensure your purchase runs smoothly. Get in touch with us [/contact] If you’d like to discuss this scheme and your eligibility.
2. Shared Ownership
Shared Ownership allows you to buy a share of a property (usually between 10% and 75%) and pay rent on the rest. Over time, you can increase your share in a process known as “staircasing,” which moves you closer to full ownership.
- Lower deposit compared with buying outright
- Rent plus mortgage makes up your monthly cost
- Run mainly by housing associations and local providers
You apply through the housing association, council, or developer marketing the property. More information is available on the Shared Ownership section of gov.uk.*
Because each provider may set different eligibility rules, using a broker can help you compare Shared Ownership mortgages, understand how the staircasing process works, and find a deal that fits your budget.
3. Mortgage Guarantee Scheme (2025)
Introduced permanently in July 2025, the Mortgage Guarantee Scheme helps lenders offer 95% mortgages, meaning buyers may need only a 5% deposit. The government provides a guarantee to the lender, but affordability checks remain the same.
- Supports first-time buyers struggling to save a large deposit
- Available through participating lenders only
- Applies to mortgages between 91% and 95% loan-to-value
You don’t apply to the scheme itself — you apply for a mortgage through a lender or broker offering one of the guaranteed products. More information is available on gov.uk.*
Because these mortgages are only available from certain lenders, working with a broker makes it easier to access the right products and check which lenders are participating.
4. Help to Buy ISA (existing holders only)
Although the Help to Buy ISA closed to new applicants in 2019, existing account holders can keep saving into their ISA until November 2029 and claim a 25% bonus until November 2030.
- Closed to new applicants
- Bonus up to £3,000 on savings for a first home
- Property price caps apply
The bonus is claimed by your solicitor or conveyancer when you buy your home.
If you still have an active Help to Buy ISA, it’s worth discussing with a broker how this bonus could be factored into your overall mortgage plan.
5. Lifetime ISA (LISA)
The Lifetime ISA lets you save up to £4,000 per year towards your first home, with the government adding a 25% bonus (up to £1,000 annually). It remains open in 2025 for those aged 18–39.
- Available for homes up to £450,000
- Funds can also be kept for retirement
- You must have the account open for at least 12 months before using it for a home
Withdrawals for a home purchase are arranged through your solicitor or conveyancer. You can read more about LISAs on gov.uk*.
A broker can advise how a Lifetime ISA bonus interacts with your mortgage application and ensure the timing of funds is managed correctly when you’re ready to buy.
How to decide which scheme is right for you
Choosing the right scheme depends on your situation:
- If you are looking at new-build homes, the First Homes Scheme may reduce your deposit needs.
- If your savings are limited but you want flexibility, Shared Ownership could be suitable.
- If you have a small deposit, the Mortgage Guarantee Scheme might be the best route.
- If you are already saving with a Help to Buy ISA or Lifetime ISA, make sure you are maximising the government bonus.
FAQs about government support for first-time buyers
Can I use more than one government scheme at the same time?
In some cases, yes. For example, you could use a Lifetime ISA to build your deposit and then buy a home through the First Homes Scheme. But not all schemes can be combined, so it’s important to check the rules carefully.
What is the maximum property price for first-time buyer schemes?
This varies. The Lifetime ISA, for example, has a maximum property value of £450,000. Shared ownership and First Homes schemes may have local caps set by councils or housing associations.
Do I still pay stamp duty as a first-time buyer?
First-time buyers in England and Northern Ireland don’t pay stamp duty on properties up to £300,000. For homes costing up to £5000,000, you won’t pay tax on the first £300,000 but will pay 5% on the rest.
How do I know if I’m eligible for a scheme?
Each scheme has its own criteria based on income, deposit, property type, and location. A We Do Mortgages advisor can explain what you may qualify for and compare your options.
Final thoughts
Buying your first home can feel daunting, but with the right support and a clear understanding of available schemes, it becomes more achievable.
At We Do Mortgages, we guide first-time buyers through their options and help them explore which schemes and mortgages could work best for their circumstances. To get started, contact us today.
*On clicking the above third-party links, you will leave the regulated site of We Do Mortgages Ltd. Neither We Do Mortgages Ltd, nor Sesame Ltd, is responsible for the accuracy of the information contained within the linked site.
Important Information
Your property may be repossessed if you do not keep up repayments on your mortgage. The FCA does not regulate some forms of Buy-to-Let mortgages.
