Help to Buy has closed to new applicants in England, but several other government-backed schemes remain active. These may be worth considering alongside First Homes or instead of it.
Each scheme has different eligibility criteria, different structures, and suits different buyer situations. Understanding what is available helps you make the right choice.
If you have looked at the First Homes Scheme and it does not fit your situation, or if you are simply weighing up all your options, there are other government-backed routes that may be relevant.
Shared Ownership lets you buy a share of a property, typically between 10 and 75 percent, and pay rent on the remaining share held by a housing association. You need a deposit and mortgage only on the share you are purchasing, which makes the upfront costs lower than buying outright. Over time, you can increase your share through a process called staircasing. Shared Ownership is available on both new build and resale properties through housing associations.
What It Offers
Smaller deposit required in cash terms Monthly cost split between mortgage and rent Can staircase to full ownership over time Widely available across England
Combined mortgage and rent payment can exceed what a standard mortgage would cost Service charges apply on most Shared Ownership properties Staircasing costs money each time you buy additional shares Some housing associations require permission for alterations
Lifetime ISA
The Lifetime ISA allows you to save up to 4,000 pounds per year towards a first home or retirement. The government adds a 25 percent bonus on top of what you save, up to a maximum of 1,000 pounds per year. You can use the savings and the bonus towards a property worth up to 450,000 pounds. You must be between 18 and 39 to open a Lifetime ISA, and you must have had it open for at least 12 months before using it to buy a home.
If you withdraw your LISA savings for any other purpose, you pay a withdrawal penalty that effectively removes the government bonus and a portion of your own savings. Make sure you understand the restrictions before committing.
Mortgage Guarantee Scheme
The Mortgage Guarantee Scheme is a government initiative that gives lenders the confidence to offer 91 to 95 percent LTV mortgages, meaning you can buy with as little as a 5 percent deposit. The government provides a guarantee to the lender on the portion above 80 percent. This does not involve any discount on the purchase price. It simply gives lenders the security to accept a smaller deposit.
The scheme is available on both new build and resale properties and is not restricted to first-time buyers, though first-time buyers are the primary users. Check current scheme terms as they are subject to change.
Many buyers use a combination of these tools. For example, a Lifetime ISA can be used alongside the Mortgage Guarantee Scheme to boost your deposit savings while buying with a 5 percent deposit. We help you identify the combination that works best for your circumstances.
The main difference between First Homes and Shared Ownership is what you own. With First Homes, you buy the property outright at a discounted price and own it fully. With Shared Ownership, you own only a share and pay rent on the rest. First Homes gives you full ownership from day one, which is simpler and avoids ongoing rent payments. Shared Ownership gives you access to properties you could not otherwise afford and a structured path to full ownership over time.
On a First Homes property, your monthly outgoing is just your mortgage payment. On a Shared Ownership property, you pay both a mortgage on your share and rent on the remainder, which together can sometimes exceed what a standard mortgage would cost.
First Homes carries a resale restriction: you must sell at the same percentage discount to another eligible buyer. Shared Ownership at 100 percent ownership carries no such restriction, and you sell at full market value.
First Homes restricts your buyer pool at resale. This is less of a concern if you plan to stay long-term but is worth factoring in if your circumstances may require a sale in the shorter term.
Shared Ownership gives access to a wider range of properties than First Homes, since it is not limited to designated First Homes units. Supply of First Homes properties is still limited in many areas.
For buyers considering First Homes specifically, our dedicated First Homes section covers eligibility, the discount structure, and the practical costs in detail.
If none of these schemes fits your situation, a standard mortgage may still be achievable, either now or with some further saving. We are happy to run through your options with no obligation.
Many buyers combine tools. Opening a Lifetime ISA as early as possible and building savings while you plan your purchase gives you the bonus and the discipline. Once the 12-month waiting period passes, the LISA pot can go towards a deposit alongside the Mortgage Guarantee Scheme.
Get in touch to talk through which scheme suits you. Our advice is fee-free and carries no obligation.
There is no single right answer. First Homes works well for buyers who want full outright ownership, have found a designated property, and are comfortable with the resale restriction. Shared Ownership suits buyers who want flexibility in how they progress to full ownership over time. The Mortgage Guarantee Scheme suits buyers with a steady income and a 5 percent deposit ready to go. A Lifetime ISA is most useful when opened early, as the 12-month waiting period before use can catch buyers out.
We work with buyers across all of these schemes and have access to lenders who are active in each space. A conversation with us usually takes 30 to 45 minutes and gives you a clear picture of what is possible.
We are registered with the FCA and give fee-free mortgage advice. Whether you have a scheme in mind or are still exploring your options, we can run through the numbers and tell you honestly which routes are available to you based on your income, deposit, and circumstances. There is no obligation and no cost to getting in touch.
