First-time buyer mortgage schemes to help get you onto the property ladder in 2024

By UK Mortgage Centre

WITH the increased cost of living, raised rents, and skyrocketing property prices in the UK, it’s no wonder that first-time buyers are turning to government support when it comes to buying their first home.

In this blog post UK Mortgage Centre will be breaking down what schemes are available to first time buyers in the UK.
There are a handful of different mortgage schemes for first-time buyers in the UK that you should be aware of before you consider purchasing your first property.
Let’s look at the schemes available in more detail below:

Mortgage Guarantee Scheme

First introduced in 2021 with the aim of increasing the availability of 95% loan-to-value deals. This means first-time buyers would only be required to put down a smaller, 5% deposit on a property.
Available to first-time buyers and home movers across the UK, it can make home ownership more realistic for those struggling to simultaneously rent a property and save enough money for a larger deposit.

First Homes Scheme

The First Homes Scheme made it possible for first-time buyers to purchase their only or main residence home for a substantial 30%-50% than its market value.
However, this scheme is only available in England and applicable for either new homes built by developers or homes purchased through an estate agent where another individual purchased the property using the same scheme.
You’ll be eligible for this scheme if all parties are first-time buyers and are at least 18-years-old and earning less either individually or jointly than £80,000 a year pre-tax or £90,000 if you’re looking to buy in London.
You must also be eligible to obtain a mortgage to cover the cost of at least half the price of the property. This significant discount for first-time buyers is also subject to council-set criteria for local areas, which might prioritise key workers, locals, and those on lower incomes.

Lifetime ISA

This Lifetime ISA launched to replace the Help to Buy ISA. This savings account has two purposes – it can either be used to help you buy you first home or saved to be used later in life.
Into this savings account, as a first-time buyer you can contribute up to £4000 each year, which the government will then add a 25% bonus up to £1,000.
Once you’re ready to use these savings, you must ensure that you’re using them to purchase a property that costs £450,000 or less using a mortgage and that you’re buying this property at least 12 months after your first Lifetime ISA payment.
The provider of the Lifetime ISA will also only release the funds to a conveyancer or solicitor, so you must use a professional to purchase your first home.

Shared Ownership Scheme

Designed for individuals that can’t afford the entire deposit and mortgage payments to purchase a home, this scheme involves buying a percentage share of a property (anywhere between 10-75% of the home’s market value) while paying monthly rent to a landlord to cover the remaining sum.
You will only be able to buy either a new-build home, an existing property via the shared ownership resale scheme, or a home that’s designed specially to meet your needs such as a long-term disability.
If you’re a first-time buyer with a household income of £80,000 a year or less (£90,000 or less in London) and you can’t afford the entire deposit and mortgage payments for a home that meets your needs, you should be eligible to apply for this scheme.

First-time buyer mortgage scheme support at UKMC

Struggling to choose the right first-time buyer mortgage scheme to meet your requirements?
Securing a mortgage deal that you’re happy with is one of the most important aspects of buying your first home as you’ll be tied into this deal for years.
Here at UKMC, we can help you to explore all your mortgage options as a first-time buyer in the UK.
Regardless of whether you want to use a government scheme or a gifted deposit to get a foot on the property ladder, our expert mortgage advisors can assess your eligibility and choices.
To ensure you understand every stage of the entire property-purchasing process, we’re also committed to cutting out the legal jargon. Instead, our honest and authentic approach will make sure you understand all the ins and outs of your chosen mortgage deal.
Book your FREE no obligation appointment with one of our experienced mortgage advisors by booking your own appointment directly here.