Who counts as a first-time buyer

Before you get excited about any scheme, check whether you actually qualify as a first-time buyer. In the UK it usually means you have never owned a home, anywhere in the world, either on your own or jointly with someone else. That overseas bit catches people out — if you inherited a share of a flat abroad, or bought with an ex-partner years ago, some schemes will treat you as a former owner.

Most schemes also come with income limits, local connection rules and a requirement that the home will be your only residence. Rules differ across England, Scotland, Wales and Northern Ireland, so a scheme advertised nationally may not exist where you live.

The Lifetime ISA: the quiet workhorse

If you are aged 18 to 39, this is often the simplest help available. You open a Lifetime ISA, pay in up to £4,000 a year, and the government adds a 25% bonus — up to £1,000 a year, every year, until you turn 50.

• The money and bonus must go towards a first home costing £450,000 or less, or be kept for later life.
• The account must be open for at least 12 months before you buy.
• If you and a partner are both first-time buyers, you can each use your own Lifetime ISA on the same purchase.
• Withdraw for anything else and you lose the bonus plus a bit more — a 25% charge bites into your own money.

It is not glamorous, but for a couple saving over three or four years it can quietly add £6,000 or more to a deposit.

Shared ownership: part buy, part rent

You buy a share of a home — typically between 10% and 75% — and pay rent on the rest to a housing provider. You only need a deposit on the share you buy, usually 5%, which is why it appeals to people priced out of a full mortgage.

Watch the detail, though:

• Household income caps apply, generally around £80,000 outside London and £90,000 in London, though some areas set lower limits.
• You pay rent, a mortgage, service charges and possibly ground rent. Add them up before you commit.
• You can usually buy more shares later — "staircasing" — often in 1% increments under newer models.
• Many shared ownership homes are leasehold flats, and selling your share later can take longer than a standard sale.

First Homes and discounted new builds

The First Homes scheme offers new-build properties at a discount of at least 30% — sometimes 40% or 50% — with the discount written into the property permanently, so it stays affordable for the next buyer. Price caps apply after the discount, currently £250,000 outside London and £420,000 in London, with income limits of £80,000, or £90,000 in London.

Priority goes to local people, key workers and armed forces families, and availability varies enormously by area. It is worth asking your council's housing team what has actually been built locally rather than what has been announced.

One thing to clear up: the old Help to Buy equity loan scheme in England closed to new applications back in 2022. If someone is still talking about it as a live option, they are out of date. Council tenants in England and Northern Ireland may still have Right to Buy, but that route has ended in Scotland and Wales.

Deposit boosters and tax relief

Two other forms of help are worth knowing about.

• 95% mortgages. Many lenders now offer loans covering 95% of the property price, meaning a 5% deposit. Rates are higher and affordability checks are stricter, so a slightly smaller loan at 90% often works out cheaper each month.
• Stamp duty relief. As a first-time buyer in England and Northern Ireland you pay no stamp duty on the first £300,000 of a home costing up to £500,000. Go over £500,000 and you lose the relief entirely. Scotland has its own relief, and Wales does not offer a first-time buyer version.

A good mortgage broker will fold all of this into the affordability picture, rather than letting you focus on the headline deposit figure alone.

What actually trips people up

Three things cause most of the disappointment. First, assuming you qualify before checking the local rules — many schemes are administered by councils with their own waiting lists and connection criteria. Second, ignoring the running costs: service charges on new builds and shared ownership properties can run to hundreds of pounds a month and are not covered by any scheme.

Third, not getting your paperwork in order early. Lenders want to see a clean credit file, steady income and a paper trail for your deposit. If a relative is gifting you money, get a signed letter confirming it is a gift, not a loan.

Start with your council's housing options team, ask a fee-free mortgage broker what you realistically qualify for, and check your credit report before you apply for anything. The schemes are genuinely useful — but they reward people who read the small print first.