It can feel like every scheme you hear about has just closed. Some have. But first-time buyers are still getting help, and most of what’s left is simpler than it sounds. Here’s what’s still available, in plain English, so you can see which might fit you.
Is there still a first-time buyer scheme?
Yes, several, just not the one most people remember. Help to Buy, the government equity loan for new builds, has closed to new buyers in England, and so has the London version people called the 40% loan.
What’s left works in different ways. Some help with the deposit, some cut the price, and some let you buy part of a home and build up from there.
Shared ownership
You buy a share of a home, between 10% and 75% of its value, and pay rent on the rest, usually to a housing association. The deposit is usually 5% to 10% of the share you’re buying, and the mortgage is only on that share. You can buy more later, and the rent goes down as you do.
Is it worth it? For some people it’s the way in. For others the extra costs don’t add up: on top of the mortgage there’s rent, and usually a service charge and ground rent, because shared ownership homes are leasehold. Selling has its own rules, and not every lender does shared ownership mortgages. Add up the full monthly cost, compare it with renting or saving a bit longer, then decide.
Rent to Buy
You rent a home, usually a new one from a housing association, at a lower rent than normal, so you can save for a deposit. After an agreed period you can buy it, outright or through shared ownership. Each provider sets its own rules on who qualifies, so ask them directly.
If you’re on Rent to Buy, that time is your run-up. Build the deposit, keep your credit file tidy and keep your income steady, and the mortgage side shouldn’t hold you up when the moment comes.
First Homes
New homes sold to first-time buyers for 30% to 50% below their market value. You must not earn more than £80,000 a year before tax, and you need a mortgage for at least half the price. They’re only offered on some new developments, so ask the developer or the council.
Do first-time buyers get 50% off? Only on a First Home, and the discount is often less than that.
Mortgages with a 5% deposit
Still here, helped by a government-backed scheme for lenders that has now been made permanent. The choice is narrower than with a bigger deposit, and the checks are tighter.
The Lifetime ISA
You can save up to £4,000 a year towards a first home, and the government adds 25%, up to £1,000 a year. Your first payment has to go in before you’re 40. There are rules on how and when you can use it for a home, so read them on GOV.UK first.
Help from family
Plenty of first-time buyers get help from family, and there’s nothing awkward about it. If it’s a gift, lenders usually want a letter confirming it isn’t a loan, and they’ll check where the money came from. There are other ways family can help too, without handing over cash.
Stamp duty
First-time buyers in England pay none on a home up to £300,000, which covers most first homes in Liverpool.
Which one is right for me?
That depends on what matters most to you: getting in sooner, keeping the monthly cost down, or owning all of it from day one. Sometimes the answer is none of them, just a standard mortgage with a 5% or 10% deposit. I’ll lay the options side by side with your numbers, and you choose.
Would it be a bad idea to know which of these fit you before you start looking?
If you’re wondering whether your salary is enough, my article on buying in Liverpool on £30,000 walks through the maths, and my guide Your First Home covers the whole process.