Lifetime ISA (UK-wide)
Open one between 18 and 39. Pay in up to £4,000 a year, the government adds 25% (up to £1,000 a year). Use it for a first home costing up to £450,000, after the account has been open 12 months. The catch: withdraw for anything else before 60 and you lose 25% of the pot, which is more than the bonus. Full guide.
95% mortgages and the government guarantee (UK-wide)
A permanent government scheme guarantees part of the loan so lenders are willing to lend 95%. You do not apply for it; you just apply for a 95% mortgage and the lender uses it in the background. The catch: higher rates than at 90%, and stricter checks. Some lenders exclude new-build flats at 95%.
Shared ownership (England, and similar in Wales)
Buy a share of a home (typically 25% to 75%, as low as 10% on newer schemes) from a housing association and pay rent on the rest. Your deposit and mortgage are on your share only. You can buy more later ("staircasing"). The catch: rent plus mortgage plus service charge can add up, it is always leasehold, and selling is more involved.
Co-Ownership (Northern Ireland)
NI's version of shared ownership, run by Co-Ownership Housing. Buy 50% to 90% of a home up to a set price cap, with no deposit required, and pay rent on the rest. Extremely popular in NI for good reason. NI guide.
First Homes (England)
New-build homes sold at 30% to 50% below market value to first-time buyers, with an income cap (£80,000, £90,000 in London) and price caps after the discount. The discount stays with the home when you sell. The catch: limited supply; check what is available in your area.
Right to Buy / Right to Acquire
If you rent from a council or housing association, you may be able to buy your home at a discount. Rules and discounts vary by nation and have tightened in England.
Developer and lender schemes for new builds
Deposit contributions, paid stamp duty, "Deposit Unlock" (95% mortgages on new builds via an insurance scheme), rate-reduction deals. Useful, but remember new builds carry a premium price. New build guide.
Family-backed mortgages
Guarantor mortgages, joint borrower sole proprietor (parents' income counts, only you own it), and family deposit mortgages where a relative locks savings in an account as security. Getting help from family.
What no longer exists
Help to Buy equity loans (England) closed in 2023. Help to Buy ISAs closed to new savers in 2019; if you have one you can still use it, but the Lifetime ISA is usually better.
A note on the numbers. Thresholds, schemes and typical costs are correct as far as we know at the time of writing and are for England and Northern Ireland unless we say otherwise. Rules change and lenders differ. Check the current position, and get advice from a qualified broker before you commit.
Quick answers
Can I use more than one scheme?
Often, yes. A Lifetime ISA can fund the deposit on a shared ownership home, or a 95% mortgage, or a First Homes purchase. The Lifetime ISA is the one almost everyone under 40 should use first.
Is shared ownership a good idea?
For people who cannot otherwise buy in an expensive area, it can be the only route, and it works. Do the full monthly sum (mortgage plus rent plus service charge) and read the lease. It suits some people very well and others not at all.
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