Various First Home Active Schemes in the UK: Detailed Review
Buying your first home in the UK can feel overwhelming—but fortunately, several first home schemes UK are designed to make the process more affordable and accessible. In this blog, we’ll explore the key options available in 2025, including the First Homes Scheme, Mortgage Guarantee Scheme, and Shared Ownership. We’ll also guide you on how these government initiatives can support your journey onto the property ladder.
First Homes Scheme
The First Homes Scheme is a flagship initiative introduced by the UK government offering first-time buyers up to a 30%-50% discount on newly built homes. This discount remains with the property, helping future buyers too.
- Eligibility: Must be a first-time buyer with a household income below £80,000 (or £90,000 in London).
- Property Cap: £250,000 outside London, £420,000 in London (after discount).
It’s an excellent solution if you’re struggling to meet traditional market prices. Learn more on the Oficial GOV.UK page
Mortgage Guarantee Scheme
Launched to encourage 95% loan-to-value mortgages, the Mortgage Guarantee Scheme helps buyers with only a 5% deposit secure competitive mortgage deals.
- Valid for homes up to £600,000.
- Backed by the UK government, reducing risk for lenders.
This is ideal if you’re finding it difficult to save for a larger deposit. It works alongside your chosen lender—many high street banks participate in this initiative.
Shared Ownership
Shared Ownership allows you to buy a share (usually between 25%-75%) of a property and pay rent on the remaining share. You can increase ownership gradually through “staircasing.”
This is especially useful in high-demand areas like London and the South East, where full ownership can be unaffordable. You can view available shared ownership properties via Government Resources.
Lifetime ISA (LISA)
The Lifetime ISA is not a property scheme per se, but a tax-efficient savings product for first-time buyers. Save up to £4,000 annually and receive a 25% government bonus.
This tool can be used towards your deposit—ideal if you’re still a few years away from purchasing.
Stamp Duty Relief for First-Time Buyers
First-time buyers are exempt from paying Stamp Duty on homes up to £425,000. A reduced rate applies up to £625,000. This significantly lowers upfront costs for new buyers entering the market.
Frequently Asked Questions
1. What is the best first home scheme in the UK for 2025?
The First Homes Scheme is the most attractive option for many buyers due to the substantial discount offered. However, your personal circumstances might make Shared Ownership or the Mortgage Guarantee Scheme a better fit.
2. Do first-time buyers pay stamp duty in the UK?
Not if the property is under £425,000. You’ll pay a reduced rate between £425,000–£625,000. Anything above that and the full rate applies.
3. Can I use a Lifetime ISA with other first home schemes UK?
Yes, a LISA can be used alongside other schemes like Help to Buy or Shared Ownership—just ensure your solicitor coordinates the timing of fund withdrawals correctly.
Final Thoughts
With so many first home schemes UK available in 2025, it’s easier than ever for first-time buyers to get started. Whether you’re looking for an affordable mortgage, a government bonus, or part-rent ownership, there’s likely a solution that matches your situation.
Start with assessing your savings and check local council offerings for any additional regional schemes.
Ready to make your first home dream a reality? Explore our complete guide on the latest first home schemes UK and get step-by-step support from property investment experts.
