First time buyer schemes
Low deposit mortgages, government schemes and family-assisted mortgages for first-time buyers in England, in one place. Whole of market advice on which fits your deposit, income and home.
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The ways to buy with a smaller deposit
Some routes reduce the cash deposit you need. Some reduce the deposit and the mortgage you have to qualify for. Some bring in a relative. They work differently and have different risks, so this page sets out each one, what has to be true for it to apply, and where to read more.
Which of them is open to you depends on your deposit, your income, the home you are buying and who can help. Aspect Mortgages is independent and whole-of-market, with access to 100+ lenders, so we compare these routes against a standard mortgage rather than recommend one by default.
Your First Home scheme
Your First Home is a government equity loan scheme announced on 26 September 2026. First-time buyers in England put down a 2.5% deposit and the government lends a further 20% of the price on new-build homes from developers signed up to the scheme. The income cap, price caps and interest-free period will be set at the Budget on 28 October 2026. The scheme is not open to applications yet.
Your First Home scheme page - what has been confirmed and what has not.
The schemes at a glance
95% mortgage
Borrow up to 95% of the price with a 5% deposit. Check: rates are higher than at lower loan to value, and the guarantee scheme applies to repayment mortgages only.
Lifetime ISA
25% government bonus on up to £4,000 a year. Check: the home must cost £450,000 or less, the ISA must be open at least 12 months, and withdrawing for anything else costs 25%. Read more in our lifetime ISA article.
Shared ownership
Buy a 10% to 75% share and pay rent on the rest. Check: household income £80,000 or less (£90,000 in London), leasehold, and rent and service charges apply.
First Homes
30% to 50% off the market price of a new-build. Check: £250,000 price cap after discount (£420,000 in London), an income cap, and local criteria.
Joint borrower sole proprietor
A relative's income counts towards the mortgage and they are not on the deeds. Note that the relative is fully liable for the whole mortgage.
Family-assisted mortgage
A relative's savings or property secure part of the loan. Check: the relative's money is tied up and at risk.
Low deposit mortgages
95% mortgages and the Mortgage Guarantee Scheme
A 95% mortgage lends 95% of the purchase price against a 5% deposit. On a £200,000 home that is a £10,000 deposit and a £190,000 mortgage.
The Mortgage Guarantee Scheme, also called Freedom to Buy, has been permanent since July 2025. The government guarantees part of the lender's risk on mortgages at 91% to 95% loan to value, so lenders are willing to offer them. You do not apply to the scheme. You apply for a mortgage with a lender that takes part. The guarantee protects the lender, not you.
Under the scheme the mortgage has to be a repayment mortgage, and it cannot be used for buy-to-let or a second home. Not every lender takes part, and many lenders offer 95% mortgages without it. Lenders do not have to price scheme mortgages below the rest of the market, so the rate is still the thing to compare.
Our guide to first time buyer deposits explains how loan to value bands affect the rate.
£5,000 deposit mortgages
Some lenders offer first-time buyer products that need a £5,000 deposit rather than a percentage of the price. They lend at a higher loan to value, so the rates are usually higher than on a 90% or 95% mortgage. Some require the £5,000 to be your own savings and some accept a family gift. Some cap the property price or exclude new builds.
Track-record mortgages for renters
A small number of lenders offer mortgages based on your rent payment history. They can accept less than 5%, or no deposit at all, usually where you can show 12 months of rent paid over an 18-month period.
Concessionary purchase
If a landlord sells to a sitting tenant, or a family member sells to a relative, the price can be set below market value and the discount can count as some or all of your deposit. A £200,000 home sold to you for £180,000 gives you a £20,000, or 10%, deposit. Not every lender accepts it.
Mortgages that bring in family help
A gifted deposit
The simplest route. A relative gives you money towards the deposit. The lender will want a signed letter confirming it is a gift and not a loan, and that the person giving it has no stake in the property. See where your deposit can come from.
Joint borrower sole proprietor (JBSP)
A JBSP mortgage puts two or more people on the mortgage, with only the buyer on the title deeds. The relative's income counts towards what the lender will lend, and the buyer owns the home outright.
How it works:
Every borrower is jointly liable for the whole mortgage, not a share of it. If payments are missed, the lender can pursue any of them.
The lender runs credit checks on everyone and counts everyone's income and outgoings.
A deposit is still needed.
Lenders usually require the relative to take independent legal advice, and most require the owner to live in the property.
Lenders limit the mortgage term by the age of the oldest borrower at the end of it, and the limit varies by lender.
Later, once your own income supports it, you can remortgage into your sole name and take the relative off the mortgage.
Only some lenders offer JBSP.
Guarantor mortgage
A guarantor, usually a parent, signs a legal agreement to cover the payments if you cannot. The guarantor is not buying the property, but they are legally responsible for the debt. These schemes are rare now, and have mostly been replaced by JBSP-style mortgages.
Deposit security and offset (springboard and family offset mortgages)
These products tie a relative's money to your mortgage instead of giving it to you.
Deposit security. A relative's savings are held with the lender for a set period as security. You can borrow up to 100% of the price with little or no cash deposit, and the relative has no stake in the property. The savings are returned at the end of the period.
Family guarantee. A relative's property is used as security instead of savings.
Family offset. A relative's savings sit in a linked account and are offset against the mortgage. Accessing that money can trigger a review of your mortgage.
Rates on these products can be higher than on a standard 95% mortgage. The relative's money is tied up for the period the lender sets, and if the mortgage is not paid, the security can be used.
Anyone who helps is taking on risk for your mortgage. Lenders may ask them to take independent legal advice, and they should take it. We welcome family at the meeting, in person at our Chorley office, at home or by video.
Government schemes and savings
Lifetime ISA
You can pay up to £4,000 a year into a Lifetime ISA until you are 50, and the government adds a 25% bonus, up to £1,000 a year. You must open it before you are 40. It counts towards the £20,000 annual ISA limit.
To use it for a home:
the property must cost £450,000 or less
you must buy at least 12 months after your first payment
a conveyancer or solicitor must act, and the provider pays them directly
you must be buying with a mortgage, and it cannot be a private mortgage from a relative
If you are buying with someone who also has a Lifetime ISA, you can both use your savings and bonus if you are both first-time buyers. Withdrawing for any other reason before 60 costs 25% of the amount withdrawn, which includes the bonus.
Read using a Lifetime ISA to buy your first home. Source: GOV.UK: Lifetime ISA.
Shared ownership
You buy a share of the home, between 10% and 75% of its market value, and pay rent to a landlord on the rest. The share is usually between 25% and 75%, and 10% is available on some homes. The deposit is usually 5% to 10% of the share you buy, not of the full price.
You can buy more shares later, which is called staircasing, and your rent falls as you do. You usually pay ground rent and service charges. Shared ownership homes are leasehold, and can be new-build or resale.
To apply, your household income must be £80,000 a year or less (£90,000 in London) and you must be unable to afford all of the deposit and mortgage payments for a suitable home. Some homes require a local connection. Source: GOV.UK: shared ownership.
Worked example (arithmetic from the published ranges, not an offer): a £200,000 home bought at a 25% share is a £50,000 share. A 5% to 10% deposit on that share is £2,500 to £5,000. Rent is paid on the other £150,000.
First Homes
First-time buyers in England can buy a new-build home for 30% to 50% below market value. Unlike shared ownership there is no rent. An independent surveyor values each home so the discount is based on actual market value.
To qualify you must be 18 or over, a first-time buyer, able to get a mortgage for at least half the price, and have a household income not above £80,000 (£90,000 in London). The price after discount cannot be more than £250,000 (£420,000 in London), and the local council can set a lower maximum. Councils may also prioritise key workers, local residents or lower earners for the first 3 months a home is on sale. Source: GOV.UK: First Homes.
Worked example (arithmetic, not an offer): a new-build with a market value of £300,000 sold at a 30% discount costs £210,000.
Which route fits
Which route costs least depends on your numbers, not on the scheme. The questions that decide it:
Is the gap the deposit, or the amount you can borrow? A smaller deposit is addressed by a 95% mortgage, a Lifetime ISA, a gifted deposit or deposit security. A borrowing gap is addressed by a JBSP or guarantor mortgage, or by buying a share.
Is the home new-build? First Homes and Your First Home apply to new-build homes. Shared ownership covers new-build and resale.
What is your household income? Shared ownership and First Homes both have an £80,000 income limit (£90,000 in London).
Who is helping, and what are they risking? A gift is not a loan. A JBSP or guarantor makes the helper liable for the debt. Deposit security ties up their savings for a set period.
What does it cost each month? Compare the monthly cost and the total cost over the term, not the deposit alone. Use the mortgage repayment calculator.
How we compare your options
We are independent and whole-of-market, with access to 100+ lenders. We check which lenders and which of these routes you qualify for, compare the rate and total cost of each against a standard mortgage, and tell you which fits, including when that is a standard mortgage with no scheme. Where a relative is helping, we explain what they are signing up to and bring them into the meeting.
Meet at our Chorley office, at your home, or by video call.
Frequently Asked Questions
What schemes are there for first-time buyers?
The main routes are 95% mortgages (supported by the Mortgage Guarantee Scheme), the Lifetime ISA, shared ownership, First Homes, family-assisted mortgages including joint borrower sole proprietor mortgages, and the Your First Home scheme, which was announced on 26 September 2026 and is not yet open.
Can I buy a home with a 5% deposit?
Yes. A 95% mortgage lends 95% of the price against a 5% deposit. On a £200,000 home that is a £10,000 deposit. Rates are usually higher than with a larger deposit, so we compare them against a 90% mortgage.
Do I apply to the Mortgage Guarantee Scheme?
No. You apply for a 95% mortgage with a lender that takes part. The government guarantee protects the lender, not you, and lenders do not have to price scheme mortgages below the rest of the market.
What is a joint borrower sole proprietor mortgage?
A mortgage where two or more people are on the agreement but only the buyer is on the title deeds. The relative's income counts towards how much you can borrow. Every borrower is fully liable for the whole mortgage, and only some lenders offer it.
What is the difference between a JBSP and a guarantor mortgage?
Both make a relative responsible for the mortgage. With a JBSP the relative is a borrower on the mortgage and their income is counted. With a guarantor mortgage the guarantor signs an agreement to cover the payments if you cannot.
Can I take my parent off a JBSP mortgage later?
Yes. Once your income supports the mortgage on its own, you can remortgage into your sole name and the relative comes off.
How does a family springboard mortgage work?
A relative's savings are held with the lender for a set period as security. You can borrow up to 100% of the price with little or no cash deposit, and the relative has no stake in the property. The savings are returned at the end of the period. The relative's money is at risk if the mortgage is not paid.
Can I use a Lifetime ISA to buy my first home?
Yes, if the home costs £450,000 or less, you buy at least 12 months after your first payment, a conveyancer or solicitor acts, and you are buying with a mortgage. Withdrawing for any other reason before 60 costs 25% of the amount withdrawn.
What is the difference between shared ownership and First Homes?
With shared ownership you buy a share and pay rent on the rest. With First Homes you buy the whole home at 30% to 50% below market value and pay no rent. Both have an £80,000 household income limit (£90,000 in London), and First Homes has a £250,000 price cap after discount (£420,000 in London).
Which scheme is cheapest?
It depends on your deposit, income, the home and who can help. We compare the rate and total cost of each route you qualify for against a standard mortgage.
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