If saving a large deposit or affording a property at full market value feels out of reach, you’re not alone. The good news is there are several schemes designed to help first-time buyers and some existing homeowners get on or move up the property ladder.
These schemes can reduce the deposit you need, lower the purchase price, or make monthly payments more affordable. Each has its own eligibility criteria and benefits, so it’s worth understanding what’s available and which might work for your circumstances.
Shared Ownership
Shared Ownership allows you to buy a share of a property (typically between 25% and 75%) and pay rent on the portion you don’t own. Over time, you can buy additional shares in a process called “staircasing” until you own the property outright.
How it works
You’ll need a mortgage for the share you’re buying and pay rent to a housing association on the rest. For example, if you buy a 50% share of a £200,000 property, you’ll need a mortgage/ deposit to cover £100,000 and pay rent on the remaining £100,000.
Key benefits
- Lower deposit. Because you’re only buying a share, your deposit is much smaller. Many Shared Ownership properties require just 5-10% of your share, not the full property value. For the above example, this could be £5,000 (5%).
- Staircase over time. You can increase your ownership gradually as your financial situation improves.
- Access to better locations. Shared Ownership can make areas that would otherwise be unaffordable more accessible.
Things to consider
- Rent and service charges. You’ll pay rent on the portion you don’t own, plus service charges and ground rent in some cases.
- Restrictions on staircasing. Some leases cap how much you can own or limit when you can staircase.
- Selling can be complex. The housing association typically has first refusal when you want to sell.
Who it often suits
Shared Ownership works well for first-time buyers who can’t afford a full deposit or purchase price but have a stable income to cover mortgage payments and rent.
Your adviser can confirm eligibility and talk you through how Shared Ownership mortgages work.
First Homes Scheme
The First Homes Scheme offers new-build properties at a discount of at least 30% (sometimes up to 50%) compared to market value. The discount is locked into the property, so when you sell, the next buyer also gets the same percentage reduction.
How it works
You buy the property at the discounted price with a standard mortgage. The discount stays with the property when you sell, so you won’t benefit from that 30-50% in equity, but you get onto the ladder at a much lower price.
Key benefits
- Significant discount. A 30-50% reduction on market value can make homeownership achievable much sooner.
- Standard mortgage. You don’t need a specialist product; most lenders will lend on First Homes properties.
- Priority for local buyers. The scheme prioritises people with local connections to the area, such as those who live or work there.
Things to consider
- New-build only. You’re limited to newly built properties under this scheme, unless you buy a second hand property under the scheme.
- Resale restrictions. You must sell at the same discount, which limits your equity growth.
- Eligibility criteria. There are income caps and other restrictions depending on the local area.
Who it often suits
First-time buyers with a connection to a specific area who are happy to buy a new-build or newly built property and prioritise affordability over long-term equity growth.
Right to Buy
If you’re a council tenant, Right to Buy allows you to purchase the property you’re renting at a significant discount. The amount of discount depends on how long you’ve been a tenant, the type of property, and your location.
How it works
You apply through your local council, and if eligible, you’ll receive an offer showing the market value and your discount. You can then purchase the property with a standard mortgage.
Key benefits
- Substantial discount. Discounts can be significant, sometimes reaching tens of thousands of pounds.
- Buy the home you’re already in. No need to move or adjust to a new area.
- Builds wealth. You’re converting rent payments into mortgage payments and building equity.
Things to consider
- Eligibility has changed. Recent changes to Right to Buy rules have tightened eligibility criteria, so not all tenants or properties qualify.
- Restrictions on selling. If you sell within a certain period (usually 5-10 years), you may need to repay some or all of the discount.
Who it often suits
Long-term council tenants who want to own their home and have the income to afford a mortgage.
Check with your local council to confirm whether you and your property qualify, then speak to your adviser about arranging the mortgage.
Right to Acquire
Similar to Right to Buy, but for housing association tenants rather than council tenants. The discount is typically smaller, but the principle is the same.
How it works
You apply through your housing association, and if eligible, you can purchase your home at a discount. The amount varies depending on location and the housing association’s rules.
Key benefits
- Discounted purchase. You’ll pay less than market value.
- Own your home. Convert your rent into building equity.
Things to consider
- Smaller discounts. Right to Acquire discounts are generally lower than Right to Buy.
- Not all housing associations participate. Eligibility depends on your landlord/ housing association.
Who it often suits
Housing association tenants who’ve been renting for several years and want to buy their current home.
Speak to your housing association to confirm eligibility, then get in touch with us to arrange your mortgage.
Low Deposit Mortgages (from 0%)
Several lenders now offer mortgages with deposits as low as 0-5%. These products are designed to help those who struggle to save a large deposit but have strong income and credit profiles.
How it works
Instead of requiring a traditional 5-10% deposit, some lenders will lend up to 100% of the property value. These deals often have specific criteria, such as requiring a guarantor, being limited to certain property types, or having pre-existing history of renting (on time each month).
Key benefits
- No or very low deposit. You can buy sooner without waiting years to save.
- Access to homeownership. Particularly helpful for those paying high rent who can afford mortgage payments but can’t build savings.
Things to consider
- Higher rates. Low or zero deposit mortgages typically come with higher interest rates.
- Limited lender choice. Not all lenders offer these products, so your options may be more restricted.
- Strict eligibility. Lenders have tight criteria around income, credit, and employment.
Who it often suits
First-time buyers with strong incomes and good credit who can afford monthly payments but struggle to save a deposit. Also suits those with family members willing to act as guarantors.
Use our find a mortgage tool to explore what low deposit options might be available to you, or speak to your adviser to discuss your eligibility.
Own New Mortgages
This scheme is exclusive to new-build properties and allows you to use your developer incentive in a different way. Instead of putting the incentive towards your deposit, you can use it to access lower interest rates during the initial period after moving in.
How it works
Many new-build developers offer incentives (often around 5% of the property price) to help buyers. With Own New Mortgages, instead of using that incentive as a deposit contribution, it’s used to buy down your mortgage rate for the first few years.
Key benefits
- Lower monthly payments initially. The reduced rate can make the early years of homeownership more affordable.
- Exclusive to select brokers. Not all brokers can access Own New Mortgages, so working with the right adviser is essential.
Things to consider
- New-build only. You must be buying a property from a participating developer.
- Availability. Not all developers or lenders participate, and availability changes.
Who it often suits
First-time buyers purchasing a new-build property who want to reduce their monthly payments in the early years.
At Ernest Grant Mortgages, we’re an approved Own New Mortgages broker. If you’re buying a new-build, ask us whether this scheme could work for you.
Which scheme is right for you?
Every scheme has pros and cons, and what works for one person might not suit another. Your choice depends on:
- Your deposit. How much have you saved, and can family help?
- Your income. Can you afford standard mortgage payments, or do you need something more flexible?
- Your location. Are you tied to a specific area, or are you flexible?
- Your property preferences. Are you open to new-builds, or do you want an older property?
- Your long-term plans. Are you looking to stay put, or might you move again in a few years?
The best way to understand which scheme suits you is to speak to a mortgage adviser who can assess your full circumstances and guide you through the options.
At Ernest Grant Mortgages, we work with clients across all of these schemes. We’ll explain the eligibility criteria, talk through the pros and cons, and help you make an informed decision.
Whether you’re just starting to explore your options or you’re ready to proceed with a specific scheme, book a free consultation with our team.
You can also explore our tools and calculators to get a sense of your budget. Our mortgage borrowing calculator shows what you might be able to borrow, and our find a mortgage tool gives you a tailored view of products available for your situation.