First-Time Buyer Schemes in the UK (2025 Update)
My personal guide to making the home buying journey less stressful
Buying my first home in the UK felt like a mix of excitement, confusion, and pure financial panic. Between house-hunting on Rightmove, comparing listings on Zoopla and OnTheMarket, and trying to make sense of UK mortgage deals, mortgage simulators, and every UK mortgage payment calculator I could find — I quickly realised that getting on the property ladder isn’t easy.
Luckily, I discovered there are several first-time buyer schemes available in 2025, which can seriously lighten the load — especially if you’re buying in areas like East Anglia, where house prices are climbing but still within reach with the right help.
So, if you’re where I was — dreaming of keys in hand but unsure how to make it happen — here’s what I wish I’d known sooner.
1. Deposit Unlock Scheme (2025)
Let’s start with one of the newest and most useful tools on the scene.
The Deposit Unlock scheme is a great option if, like me, you don’t have a 15–20% deposit saved. It allows first-time buyers to purchase a new-build home with just a 5% deposit, backed by participating lenders and housebuilders.
This scheme is particularly helpful if you’re buying in growing areas like Cambridgeshire, Norfolk, or Suffolk, where new developments are popping up regularly. It’s also a smart choice for those looking for first-time buyer houses on modern estates.
Top tip: Some lenders also offer better interest rates through this scheme than standard 95% mortgages, making it ideal for those comparing mortgage UK deals.
2. Shared Ownership (Part-Buy, Part-Rent)
This one can be a bit misunderstood — but it was something I seriously considered.
With Shared Ownership, you buy a percentage (usually 25–75%) of a property and rent the rest from a housing association. Over time, you can “staircase” your way to full ownership.
It works well if:
- You’re buying alone or on a lower income
- You’re happy to start small and work up
- You’re looking in areas where full ownership feels out of reach
While your monthly rent + mortgage combined might be similar to a full mortgage, it’s often more accessible upfront. Just make sure you’re clued up on the leasehold details, first-time buyer declaration requirements, and any service charges.
3. First Homes Scheme
A little trickier to access, but amazing if you’re eligible.
The First Homes scheme offers discounts of 30%–50% on selected new-build homes for local first-time buyers and key workers. The discount stays with the home — so future buyers also benefit.
This is especially helpful in places like East Anglia, where the average house price is pushing first-time buyers out of town centres. These homes are reserved for local people earning under a set income threshold, which keeps them genuinely affordable and within reach — even when interest rates are fluctuating.
4. Lifetime ISA (LISA)
Okay, it’s not technically a scheme, but it’s something I personally used to boost my deposit.
You can save up to £4,000 a year, and the government gives you a 25% bonus — that’s £1,000 free each year. Just make sure you’re using it to buy your first home (under £450,000) or for retirement — otherwise, there’s a withdrawal penalty.
This works well alongside tools like a UK mortgage payment calculator or a first-time buyer stamp duty calculator, to help you budget the full cost of your first home. You may also be eligible for first-time buyer stamp duty relief, which I was — and it made a big difference to my final bill.
Summer Sky Investments actually has a great breakdown of how to combine your first-time buyer ISA with a competitive UK mortgage — and their mortgage partners helped me understand how best to use mine.
Why You Should Speak to a Mortgage Advisor Early
This might be the most important advice I can give: speak to a qualified mortgage advisor as early as possible. I waited until I’d already picked a home I liked — and nearly missed out because I wasn’t ready with my mortgage in principle.
A good advisor will:
- Help you understand what you can really afford
- Explain fixed vs variable UK mortgage interest rates in plain English
- Recommend cheap mortgage deals tailored to your situation
- Handle all the annoying paperwork and guide you through your first-time buyer declaration
I worked with Summer Sky Investments, and honestly, they made the whole process feel 10x easier. No jargon, no pressure — just clarity.
Final Thoughts: You Can Do This
I know how scary it feels when you’re staring at house prices and interest rate headlines, wondering if it’s even possible. But with the right first-time buyer scheme, a clear plan, and smart budgeting tools like a mortgage simulator or UK mortgage payment calculator, it really is.
Keep checking Rightmove, compare homes on Zoopla and OnTheMarket, but more importantly — start with the financial prep. Your future home is closer than you think.
