Buying your first home is easier with the right help. Several schemes can lower your deposit, your tax bill or the price itself, and some work especially well with new builds. Each has its own rules, so check you qualify before you plan around one.
Stamp duty relief for first-time buyers
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, and 5% on the part between £300,000 and £500,000. Above £500,000 the relief doesn't apply. You and anyone buying with you must all be first-time buyers.
Lifetime ISA
If you're 18 to 39 you can open a Lifetime ISA and save up to £4,000 a year. The government adds a 25% bonus, up to £1,000 a year. You can use it towards a first home costing up to £450,000. Withdrawing for anything else, before 60, usually means a 25% charge, so read the rules first.
95% mortgages and the Mortgage Guarantee Scheme
A government guarantee encourages lenders to offer mortgages with a 5% deposit. Not every lender or property qualifies, and rates can be higher than with a bigger deposit. Some new-build developers also take part in Deposit Unlock, an industry scheme for 5% deposits on their homes.
Shared ownership
You buy a share of a home, often from 10% to 75%, and pay rent on the rest. You can usually buy more shares later, known as staircasing. Homes are typically leasehold, with rent and service charges on top of your mortgage.
Discounted homes such as First Homes
Some new builds are sold at a discount to local first-time buyers, for example through the First Homes scheme, with income limits and local connection rules. Availability depends on the council and development, so ask the developer or council what's currently offered.
Developer incentives
On top of government schemes, developers often offer deposit contributions, stamp duty contributions or legal fees paid. These can sometimes be combined with a scheme, but not always, so check how they interact before you reserve.
What to know
- Help to Buy is closed to new applicants in England, so ignore older advice that relies on it.
- Schemes and thresholds change, so confirm the current rules on gov.uk before you rely on them.
- A mortgage adviser can tell you which schemes fit your situation and which lenders accept them.
Questions to ask the developer
- Which first-time buyer schemes can I use on this plot?
- Can your incentives be combined with a Lifetime ISA or a 5% deposit mortgage?
- Are any homes here sold as shared ownership or at a discount for local buyers?
General information only, not financial or legal advice.