A guide to UK home ownership schemes: Updated 2025
If you’re struggling to get your foot on the property ladder, you’re certainly not alone. The rising cost of property and the challenge of saving a deposit mean that buying a home can feel out of reach. But a range of home ownership schemes are available to bring your dream of buying your own home closer to reality.
Home ownership schemes quick links
Looking for more information on a specific scheme? Click on the link below to take you to that section of this page.
Which home ownership scheme is right for me?
That all depends on the particular challenges you’re facing as a first-time buyer or home mover. Some schemes make home ownership more affordable by reducing how much deposit you need whereas others focus on discounting properties to lower the amount you’ll need to borrow in the first place.
To understand how these schemes could work with your financial situation and affect your mortgage options, get in touch with our qualified mortgage experts.
National home ownership schemes
There are a select number of affordable housing schemes available throughout the United Kingdom. Let’s take a look at what’s out there.
Mortgage Guarantee Scheme
The Mortgage Guarantee Scheme is a UK government initiative, designed to boost the availability of mortgages for buyers with small deposits by offering lenders a government-backed guarantee.
If you default on your mortgage for whatever reason, the government covers a portion of the lender's losses. This reduces the risk for lenders and encourages them to offer higher loan-to-value (LTV) mortgages of between 90%-95%.
You don’t have to apply for the scheme directly. Instead, you apply for a 95% mortgage from a participating lender as you would any other mortgage - though be aware that higher LTV mortgages do typically come with less competitive interest rates.
Deposit Unlock scheme
Deposit Unlock is the first non-government funded home ownership scheme in the UK, developed by the Home Builders Federation in 2021.
The scheme enables you to buy a new build home with a 5% deposit, rather than the standard 15% that lenders typically demand for new build properties. This can be particularly appealing to those struggling to save a deposit.
Mortgages for this scheme are only offered by specific developers and lenders partnered with the scheme, so be aware that your options may be limited.
Lifetime ISA
Though not technically a home ownership scheme, as savings can also be used to support your retirement, the government’s Lifetime ISA (LISA) can help first-time buyers boost their savings.
If eligible, you’ll be able to save up to £4,000 each year, with the government topping it up by 25% up to a maximum of £1,000 each year. When you’re ready to buy your first home, as long as the property costs £450,000 or less and meets the LISA withdrawal criteria, you’ll be able to use the savings as your deposit.
Forces Help to Buy
The Forces Help to Buy scheme allows eligible Armed Forces personnel to borrow up to half of their salary (up to a maximum of £25,000) interest-free. This money can be used as all or part of a deposit, or to cover other home buying costs such as solicitor’s fees. This scheme encourages service personnel to buy their first home or makes moving home more financially accessible.
Home ownership schemes in England
Looking to buy a home in England? The following schemes may help to make the path to home ownership that little bit clearer.
First Homes scheme
The scheme offers new build properties at 30% to 50% below market value. This allows you to buy a home with a smaller deposit. You’ll also be borrowing less from the lender so your monthly repayments may be lower compared to if you were buying the property at its full value.
You’ll need to be a first-time buyer in England with a household income of £80,000 or less (£90,000 in London) - though additional criteria may be stipulated by different local authorities.
Anyone meeting the criteria can apply, but allocation is likely to be prioritised for key workers, those on a lower income and people with links to the local area.
It’s also worth noting that the properties purchased through these schemes are designed to remain affordable for future buyers, meaning they can only be sold to other scheme users at the same discounted rate. While this benefits homebuyers as a whole, it may limit the profit you make when selling your home.
Rent to Buy scheme
The Rent to Buy scheme (London Living Rent Scheme in the capital) allows you to rent a property at a reduced market rate while you save up for a deposit.
Once you’ve lived in the property for a set length of time, you’ll then have first refusal to buy the property, as the money saved on rent should provide you with a large enough deposit.
Right to Buy or Right to Acquire schemes
These schemes help council tenants (Right to Buy) and housing association tenants (Right to Acquire) buy their rented home at a discounted rate.
The discount varies depending on the length of your tenancy and how much the property is worth - and is usually much smaller for housing association tenants. Some lenders even allow you to use this discount in lieu of a deposit when taking out a mortgage, making it much more achievable to get one.
Home ownership schemes in Wales
There are a few government home buying schemes available to buyers looking to purchase property in Wales.
Help to Buy scheme
The Help to Buy scheme allows first-time buyers to buy a new build property in Wales with a deposit of 5% and an equity loan from the government of up to 20%. This tops up your deposit, which lowers the LTV of your borrowing, making mortgage repayments more achievable and aiding your affordability for the purpose of the application.
You’ll need to repay the loan within 25 years, but you have the option to repay it sooner if you wish. The equity loan is interest-free for the first 5 years, but from the 6th you pay 1.75% per month of the equity loan balance as interest. Interest charges rise each year by the Consumer Price Index (CPI), plus 2% - so you’re best to prioritise paying it back sooner if possible.
Homebuy scheme
The Homebuy scheme provides an equity loan of around 30% of a new build property’s value - meaning you may only need to borrow 70% with a mortgage. The loan is repaid when the home is sold, based on the property's value at that time.
Unlike Help to Buy, this scheme is primarily for existing properties on the open market and is targeted at those who would otherwise qualify for social housing or cannot afford a suitable home in their local area.
It’s worth noting that the scheme is not available throughout all of Wales - it’s predominantly aimed at those living in more rural areas, where there are less homes available.
Home ownership schemes in Scotland
The main home ownership schemes in Scotland are part of the Low-cost Initiative for First Time Buyers (LIFT). This is currently broken down into two schemes, each with slightly different rules, but both available to first-time buyers and priority groups.
New Supply Shared Equity (NSSE) scheme
The Scottish government buys 20-40% of a new build property for you and you buy the rest using a mortgage. You won’t need to pay them back and own the home with an official deed, but when you sell the property on, the government takes 20-40% share of the sale price.
Open Market Share Equity (OMSE) scheme
This works very similarly to the above, but it can be used for properties that are available on the open market. The government provides between 10% and 60% of the cost of an open market home through a shared equity agreement and you pay them back when you sell the home on.
Home ownership schemes in Northern Ireland
There are currently no home ownership schemes such as Help to Buy specifically aimed at those buying a property in Northern Ireland. However, it has a long-standing shared ownership scheme called Co-Ownership, which allows you to buy a share of a home and pay rent on the remaining share. Residents in Northern Ireland can also access UK-wide schemes such as the Lifetime ISA and the Mortgage Guarantee Scheme.
How to get a mortgage if you’re using a home ownership scheme
Getting a mortgage when using a home ownership scheme usually follows a similar path to a traditional mortgage application, but with a few extra steps. It’s important to understand the specific requirements of both the scheme and the mortgage lender.
Not all lenders offer mortgages for every type of home ownership scheme, so always double check their criteria or work with a mortgage broker to match you with the most suitable lender.
Here’s a brief step-by-step on getting a mortgage when using a home ownership scheme:
-
Make sure you’re eligible for the scheme
Before you can start the mortgage application process, you’ll need to make sure you meet the eligibility criteria for the scheme you want to use. In some cases you’ll need to be approved for the specific scheme you’re interested in before you start seriously looking at your mortgage options.
-
Work out how much you can borrow
You’ll need to make sure a mortgage is realistically affordable for you, even if you’re planning to use a scheme to support you. A mortgage broker can help you to look at your income, expenses and the specifics of the scheme (like rent payments on the unowned share in Shared Ownership) to determine how much you can realistically borrow.
-
Find the right mortgage lender
Different lenders have different eligibility requirements and criteria - and wading through it all yourself can be complex and time-consuming. An experienced broker will know which lenders are more likely to approve your application, and can compare different mortgage deals to find the most suitable one for you.
-
Submit a mortgage application
Your lender will need you to submit a detailed application form along with supporting documents. Again, while it’s possible to do this yourself, a mortgage broker can help you to prepare your application to boost your chances of success.
-
Get your formal mortgage offer
Once your lender’s arranged a property valuation and they’re happy with everything, you’ll receive a formal mortgage offer. You’ll then be able to move forward with the rest of your home buying journey!
Seeking the right advice at the right time is key - and that’s where we come in. Our qualified Mortgage Experts are on hand to explain these schemes in more detail and guide you through the process of getting a mortgage.
Other mortgage options for first-time buyers
Guarantor mortgages
A loved one can help you get your foot on the property ladder by putting down their own property or savings as security for the loan. This means you might not need to put down as big a deposit, so you can buy a home sooner.
No-deposit mortgages
While most lenders ask for a deposit of at least 5%, there are some no deposit options available including gifted deposits and even some very niche lender products.