Property
⏱ 4 min read
📅 Updated May 2026
First-Time Buyer Schemes UK 2026: LISA, Shared Ownership & More
First-time buyer schemes UK 2026 — Lifetime ISA bonus, 5% deposit mortgages, Shared Ownership.
⚡ Editor's Verdict — Use Lifetime ISA + Mortgage Guarantee Scheme
First-time buyers in 2026 benefit from 0% Stamp Duty on properties up to £425,000 (extended to March 2027 — check current rules), the Mortgage Guarantee Scheme (5% deposit mortgages), and Lifetime ISA government bonus (25% up to £1,000/year). House prices remain high but affordability has improved slightly as rates stabilise. |
Buying your first home in the UK involves navigating deposits, mortgages, Stamp Duty, and government schemes. This guide covers the key schemes, costs, and steps for first-time buyers in 2026. First-Time Buyer Schemes UK 2026| Scheme | Benefit | Eligibility | Status 2026 |
|---|
| Lifetime ISA (LISA) | 25% government bonus (up to £1,000/year) on savings | 18–39, first-time buyer | ✅ Open | | Mortgage Guarantee Scheme | Enables 5% deposit mortgages | Any buyer, property up to £600,000 | ✅ Open (extended) | | Shared Ownership | Buy 25–75% share, pay rent on remainder | Income under £90,000 (London £80,000) | ✅ Open | | First Homes | 30–50% discount on new build properties | Local connection, income cap | ✅ Limited availability | | Help to Buy ISA | Closed to new applicants — existing accounts can claim bonus until 2029 | Existing account holders only | ⚠️ Closed to new |
First-Time Buyer Stamp Duty UK 2026| Property Price | Standard Rate | First-Time Buyer Rate | Saving |
|---|
| Up to £300,000 | 2% on £125,001–£250,000 | 0% | Up to £5,000 | | £300,001–£425,000 | 5% on £250,001+ | 0% | Up to £6,250 | | £425,001–£500,000 | 5% | 5% on portion above £425,000 | Partial relief | | Above £500,000 | Standard rates apply | Standard rates apply | No relief |
| ⚠️ Stamp Duty first-time buyer relief thresholds changed in April 2025. The 0% threshold reverted from £425,000 to £300,000 for most purchases — check the current GOV.UK Stamp Duty calculator for your specific purchase price. |
How Much Deposit Do I Need as a First-Time Buyer?| Deposit | LTV | Mortgage Rate Access | Scheme Needed? |
|---|
| 5% | 95% | Higher rates — Mortgage Guarantee Scheme | Yes | | 10% | 90% | Better rates available | No | | 15% | 85% | Good rate access | No | | 20%+ | 80% | Best rates — largest lender choice | No |
What help is available for first-time buyers in the UK in 2026?Key schemes include: Lifetime ISA (25% bonus up to £1,000/year on savings), Mortgage Guarantee Scheme (enables 5% deposit mortgages), Shared Ownership (buy a share of a property), and First Homes (30–50% discount on new builds for local buyers). Help to Buy is closed to new applicants. What is the Lifetime ISA for first-time buyers?A Lifetime ISA (LISA) lets you save up to £4,000/year and receive a 25% government bonus (up to £1,000/year). Savings and bonus can be used towards a first home purchase (up to £450,000). You must be aged 18–39 when you open the account. Withdrawing for any other purpose before age 60 incurs a 25% penalty (which repays the bonus and some of your own savings). Can I buy a house with a 5% deposit?Yes — the Mortgage Guarantee Scheme enables lenders to offer 95% LTV (5% deposit) mortgages on properties up to £600,000. Interest rates are higher than at lower LTV ratios, but it allows buyers to get on the ladder sooner. Use a mortgage broker to find the best 95% LTV deals. What is Shared Ownership?Shared Ownership lets you buy a 25–75% share of a property and pay rent on the remaining share owned by a housing association. You need a smaller deposit (on your share only), and can buy additional shares over time ('staircasing'). Income eligibility limits apply — £90,000/year in London, £80,000/year elsewhere. Sources: GOV.UK Lifetime ISA · GOV.UK Mortgage Guarantee Scheme · GOV.UK Shared Ownership · GOV.UK Stamp Duty Land Tax calculator · UK Finance first-time buyer data 2026 |
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Part of our complete guide: UK Mortgage Rates April 2026 - Current Rates & Guide → Find a whole-of-market mortgage broker →
Editorial Disclaimer
The content on Kaeltripton.com is for informational and educational purposes only and does not constitute financial, investment, tax, legal or regulatory advice. Kaeltripton.com is not authorised or regulated by the Financial Conduct Authority (FCA) and is not a financial adviser, mortgage broker, insurance intermediary or investment firm. Nothing on this site should be construed as a personal recommendation. Rates, figures and product details are indicative only, subject to change without notice, and should always be verified directly with the relevant provider, HMRC, the FCA register, the Bank of England, Ofgem or other appropriate authority before any financial decision is made. Past performance is not a reliable indicator of future results. If you require regulated financial advice, please consult a qualified adviser authorised by the FCA.
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Chandraketu Tripathi
Finance Editor · Kaeltripton.com
Chandraketu (CK) Tripathi, founder and lead editor of Kael Tripton. 22 years in finance and marketing across 23 markets. Writes on UK personal finance, tax, mortgages, insurance, energy, and investing. Sources: HMRC, FCA, Ofgem, BoE, ONS.
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