First-Time Buyer Schemes in 2026: What's Available?
The schemes and products available for first-time buyers in 2026, and how to work out which suit you.
The first-time buyer landscape has shifted significantly in recent years. Help to Buy (Wales Only) equity loan closed in 2023. Help to Buy ISAs closed to new applicants in 2019. The first-time buyer market in 2026 relies on a mix of Lifetime ISAs, shared ownership, 95% mortgages, regional schemes and private-market products like guarantor and joint borrower sole proprietor mortgages.
Lifetime ISAs
The Lifetime ISA (LISA) remains one of the most generous government schemes for first-time buyers. You can save up to £4,000 a year and receive a 25% government bonus, up to £1,000 free every year between 18 and 50. Funds must be used for a first home up to £450,000, or accessed at 60. Early withdrawal for anything else carries a 25% penalty.
For first-time buyers saving a deposit, the LISA is usually the first place to put savings. If you and a partner both open one, you can collect £2,000 of bonus a year between you.
Shared ownership
Shared ownership lets you buy a percentage of a home (typically 25–75%) and pay rent on the rest. You need a mortgage only for the portion you buy, making the deposit requirement much smaller. You can "staircase", buy more of the property over time, as your finances allow.
Shared ownership has its own quirks: rent increases, staircasing costs, resale rules. We advise taking proper advice before committing.
95% mortgages
Most mainstream lenders now offer 95% loan-to-value products, you need a 5% deposit on a home you want to buy. These became widely available again after the government's 95% guarantee scheme, and the market has since broadened beyond the scheme itself.
The trade-off for a smaller deposit is a slightly higher interest rate and a narrower choice of properties (new-build flats, for example, are often restricted to higher deposits). But 95% lending is genuinely available to most employed first-time buyers in 2026.
Regional and specialist schemes
First Homes, aimed at local first-time buyers at a discount to market value, is still running in some areas. Forces Help to Buy is available for serving military personnel. Some regional schemes operate in specific councils.
Guarantor and JBSP mortgages
If your income does not stretch far enough, a parent or relative can help. Guarantor mortgages use a family member's income or property as security. Joint borrower sole proprietor (JBSP) mortgages let a relative be named on the loan (boosting affordability) while only you appear on the deeds.
Both are specialist products with strict rules. A specialist adviser can tell you which lenders offer them and whether your circumstances fit.
Key takeaways
- Lifetime ISAs give a 25% government bonus on up to £4,000 per year
- Shared ownership reduces the deposit and mortgage you need
- 95% mortgages are now widely available for 5% deposits
- Regional schemes like First Homes are still running in some areas
- Guarantor and JBSP mortgages bring family income into the lending decision
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Think carefully before securing other debts against your property. Your property may be repossessed if you do not keep up repayments on your mortgage.
Major Money Matters Ltd is an appointed representative of Sesame Ltd which is authorised and regulated by the Financial Conduct Authority. FCA reference: 409534. Registered office: 133 Shepherds Hill, Harold Wood, Romford, RM3 0NR.