Search for help buying your first home and you will find pages still describing schemes that closed years ago. That is a waste of an evening. So here is where things stand in October 2026: what is open, what has shut, and what has just been announced but cannot be used yet.
One point before the detail. None of these schemes is a mortgage. Each one changes how much deposit you need, how much you can borrow or what you pay, and you still have to pass a lender’s affordability checks to get the keys.
Your First Home: Announced, Not Open Yet
This is the newest one, and the one most people are asking about. The government announced Your First Home on 26 September 2026. It is for first-time buyers in England buying a new-build home from a developer that has signed up to take part.
The shape of it, as announced: you put in a 2.5% deposit, the government lends 20% of the price as an equity loan, and your mortgage covers the remaining 77.5%. The equity loan is interest-free for an initial period. There will be a household income cap and local price caps too.
What we do not know yet matters just as much. The income cap, the price caps, how long the interest-free period lasts and how the loan is repaid have not been confirmed. Full rules are due at the Budget on 28 October 2026, and pre-registration is expected to open by the end of the year. Nobody can buy through it today. Be wary of any site giving you exact figures before then. We will update this page once the detail is published.
Mortgage Guarantee Scheme: 95% Mortgages
This one runs in the background. The government backs part of a lender’s risk on mortgages with a 5% deposit, which makes lenders more willing to offer them. It was made permanent in 2025. It covers first-time buyers and home movers buying a main home worth up to £600,000, and it does not cover second homes or buy-to-let.
You do not apply for it. The lender does. Not every lender takes part, and the ones that do still run full affordability and credit checks, so the guarantee protects the lender, not you. This is where a broker earns the fee, because finding which lenders are offering 95% loans this month, and on what terms, is the whole job.
Lifetime ISA
A Lifetime ISA lets you save up to £4,000 a year, and the government adds a 25% bonus, so up to £1,000 a year. You open it between the ages of 18 and 39, and bonuses carry on until you are 50.
The rules bite in a few places. The account must have been open for at least 12 months before you use it. The home must cost £450,000 or less. And if you take money out for anything other than a first home, a terminal illness or after age 60, a 25% charge applies. Plenty of buyers in London and the South East find the price limit the sticking point.
Shared Ownership
Shared ownership lets you buy a share of a home, usually somewhere between 10% and 75%, and pay rent on the rest. You can buy bigger shares later, a step known as staircasing, and each one is priced at the market value on the day. If you are weighing it against renting, our page on shared ownership vs renting sets out the trade-offs.
Eligibility is based on household income, with a cap of £90,000 in London and £80,000 elsewhere in England. You normally cannot own another home, and you should expect service charges and buildings insurance on top of rent and mortgage. The deposit applies to the share you buy, not the full price, which is why the upfront cost can be so much lower. The rent on the unsold share is capped at a percentage of its value and can rise each year, so budget for that to creep up.
First Homes
First Homes are new-build properties sold in England at a discount of at least 30% compared with market value, and the discount stays with the home when it is sold on. There is a household income cap and local councils can add their own rules, such as a local connection or priority for key workers. Availability is very limited, so ask the developer or the council what is on offer near you rather than assuming something is.
Help to Buy Equity Loan: Closed
If you have seen Help to Buy mentioned as a way in, it has gone. The England equity loan closed to new applicants on 31 October 2022 and the scheme ended on 31 March 2023. Your First Home is not a revival of it, though it follows a similar idea.
Scotland, Wales and Northern Ireland
Scotland, Wales and Northern Ireland run their own housing schemes, and the terms differ from the English ones above. Check with the relevant government before you rely on anything here. We can tell you how a scheme interacts with your mortgage, but the eligibility rules are theirs.
How Schemes and Mortgages Fit Together
Most first-time buyers end up using a scheme and a mortgage side by side. A Lifetime ISA builds the deposit, a guarantee-backed 95% mortgage covers the rest, and a shared ownership or discounted new-build lowers what you need to borrow. What catches people out is the order. Lenders have rules about gifted deposits, bonuses and how a scheme sits alongside their lending, so it is much safer to speak to a first-time buyer mortgage broker before you commit to any of it. Our first-time buyer mortgage calculator will show roughly how much you could borrow in the meantime, and our page on the mistakes first-time buyers make covers what to avoid once you start looking.
Frequently Asked Questions
What government schemes are available for first-time buyers in 2026?
The permanent Mortgage Guarantee Scheme, the Lifetime ISA, shared ownership and First Homes are open now.
Your First Home has been announced for England but cannot be used until it launches.
Is Help to Buy still available?
No.
The England equity loan closed to new applicants on 31 October 2022 and ended on 31 March 2023.
What is the Your First Home scheme?
An announced scheme for first-time buyers in England buying new-build homes.
The deposit is 2.5% and the government lends 20% of the price. The full rules are due at the Budget on 28 October 2026.
How much can I save with a Lifetime ISA?
Up to £4,000 a year, and the government adds 25%, which is up to £1,000.
The account must be open for 12 months and the home must cost £450,000 or less.
Can I get a 95% mortgage as a first-time buyer?
Yes, with a 5% deposit, if a lender offers one and you pass its checks.
The Mortgage Guarantee Scheme covers homes up to £600,000, though not every lender takes part.
Should I speak to a broker before using a government scheme?
Yes.
A broker can check which lenders accept your scheme and how it affects what you can borrow, before you commit to a purchase.
Speak to a mortgage specialist
Not sure which scheme fits your deposit? Speak to us before you commit to a property.
UK Mortgage Broker is a whole-of-market broker helping clients throughout the UK and globally to secure funding on UK property. We are directly authorised and regulated by the Financial Conduct Authority.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Call: +44 1628 969 500 Email: info@uk-mortgagebroker.co.uk
Related Pages
- First-Time Buyer Mortgages – How lenders assess first-time buyers and what to prepare.
- 5 Common Mistakes First-Time Buyers Make – The budget, cost and timing slip-ups to avoid before you complete.
- How Much Can I Borrow? – How lenders turn your income and commitments into a maximum loan.
- Mortgage Affordability UK – How lenders decide what you can afford, and what that means for your budget.
- The Mortgage Application Process, Step by Step – What happens from first enquiry to formal offer.