From the Mortgage Guarantee Scheme to LISAs, Shared Ownership and First Homes — every key UK scheme explained in plain English.
# First-Time Buyer Schemes in 2026: A Simple Guide
Buying your first home is exciting. But it can also feel hard, especially when it comes to saving up enough money. The good news is that there are several schemes built to help you. They can make your deposit go further or cut the cost of buying.
In this guide, we explain the main schemes for first-time buyers in 2026 in plain English. We will keep it simple, so you know what each one does and whether it might suit you.
## What counts as a first-time buyer?
First, a quick definition. A first-time buyer is someone who has never owned a home before, anywhere in the world. If you are buying with someone else, they must never have owned a home either. If you both qualify, you can use the schemes below.
Now, let's look at your options.
## 1. The Mortgage Guarantee Scheme
Most people need a deposit to buy a home. This is money you pay up front, while the rest comes from a mortgage (a loan from a bank).
Normally a bigger deposit is easier, but saving one takes years. The Mortgage Guarantee Scheme helps by letting you buy with just a 5% deposit. So on a £200,000 home, you would need £10,000 instead of much more.
It works like this: the government promises to cover part of the bank's risk. This makes banks more willing to lend to people with small deposits. The scheme is now permanent and covers homes worth up to £600,000. Big lenders like Lloyds, NatWest, HSBC, Barclays and Santander take part.
One thing to keep in mind: a small deposit means a bigger loan and higher monthly payments. If you can save 10% or more, you will usually get a better rate. But for many people, 5% is the difference between buying now and waiting years.
## 2. The Lifetime ISA (LISA)
A Lifetime ISA is one of the simplest and most useful tools for first-time buyers. It is a savings account with a big bonus attached.
Here is the deal. You can save up to £4,000 a year into a LISA. The government then adds a 25% bonus on top. That means you could get up to £1,000 of free money each year, just for saving.
You can use the money for the deposit on your first home, as long as the home costs £450,000 or less. The only catch is that if you take the money out for any other reason (apart from retirement), you pay a penalty. So only use a LISA if you are sure you are saving for a home or for later life.
## 3. First Homes
The First Homes scheme is for buyers in England. It lets you buy certain new-build homes at a big discount, usually 30% to 50% below the normal price.
Because the discount comes off the full price, you need a smaller deposit and a smaller mortgage. That can make a big difference to what you can afford.
There are some rules. The home must cost £250,000 or less after the discount (or £420,000 in London). You must earn less than £80,000 a year (£90,000 in London). And when you sell, you must pass the same discount on to the next buyer. This keeps the home affordable for others in the future.
## 4. Shared Ownership
Shared Ownership is a clever middle step between renting and owning. You buy a share of a home, usually between 25% and 75%, and pay rent on the rest to a housing association.
The big plus is that your deposit is based only on the share you buy, not the whole home. So your upfront costs are much lower.
Over time, you can buy more shares. This is called "staircasing." Bit by bit, you can own more of your home, and eventually own all of it if you wish. To qualify, your household income must be £80,000 or less (£90,000 in London). Just remember you will usually pay for all the repairs, even if you only own part of the home.
## 5. Help from family
Many first-time buyers get a hand from family, and some mortgages are built around this.
For example, some banks let parents put savings into a linked account or act as a guarantee for a few years. Others let parents add their income to your mortgage without being named as owners of the home. There are also simple gift options, where a family member gives you money for the deposit. If family can help, it is worth asking a mortgage adviser which route works best.
## What about stamp duty?
Stamp duty is a tax you may pay when buying a home in England and Northern Ireland. The good news is that first-time buyers get a discount.
In 2026, first-time buyers pay no stamp duty on the first £300,000 of a home's price. On the part between £300,001 and £500,000, you pay 5%. If the home costs more than £500,000, you do not get the discount and pay the normal rates.
It is worth knowing that this threshold dropped from £425,000 back in April 2025. So buyers of pricier homes now pay a bit more than before. In cheaper areas, though, many first-time buyers still pay nothing at all.
## Which scheme is right for you?
There is no single "best" scheme. The right choice depends on three things: how much deposit you have, how much you earn, and where you want to buy.
A LISA is great while you are still saving. The Mortgage Guarantee Scheme helps if your deposit is small. First Homes and Shared Ownership help if home prices in your area feel out of reach. Many people even mix a few together.
The smartest first step is to talk to a mortgage adviser. They can look at your situation and point you to the schemes you qualify for. With the right help, your first home may be closer than you think.
*This article is for general information only and is not financial advice. Scheme rules and tax thresholds can change, so always check the latest official guidance and speak to a qualified adviser before making any decisions.*