How First-Time Buyers Can Get a Mortgage
A Guide to Government Schemes and Support
Buying your first home is exciting, but it can also feel overwhelming—especially when saving for a deposit, understanding mortgage options, and navigating rising house prices. If you or someone you know is trying to get onto the property ladder, there are government schemes and mortgage options that can help make buying a home more achievable.
This guide will take you through some of the key schemes available, explain how they work, and highlight why speaking to a mortgage adviser is an essential step in securing the right mortgage.
1. Understanding Low-Deposit Mortgages
One of the biggest hurdles for first-time buyers is saving for a deposit. Many believe they need a large sum upfront, but there are options available for those with small deposits—or even no deposit at all.
95% Loan-to-Value (LTV) Mortgages
For buyers with a small deposit, 95% LTV mortgages allow you to buy a home with just a 5% deposit. Many lenders, including high-street banks, offer these mortgages, and while interest rates may be higher than for larger deposits, they allow you to buy sooner rather than later.
A mortgage adviser can help you compare lenders and find the best 95% LTV mortgage suited to your financial situation.
The Mortgage Guarantee Scheme
This government-backed scheme helps lenders offer 95% mortgages to first-time buyers. If you have a 5% deposit, this scheme could improve your chances of securing a mortgage. It is available until June 2025, so if you’re thinking of buying, now is the time to explore your options[1].
100% Mortgages – Skipton’s Track Record Mortgage
If saving for a deposit has been a struggle, Skipton Building Society’s Track Record Mortgage could be an option. This is a 100% mortgage designed for renters who have paid rent on time for at least 12 months. It allows buyers to purchase a home without needing a deposit, but it does come with certain conditions[2].
A mortgage adviser can help determine whether this is a suitable option for you and explain any risks involved.
2. Boosting Your Deposit with Family Support
Many first-time buyers rely on family support to increase their deposit or improve their affordability. There are structured mortgage options designed to help families assist buyers in a secure and manageable way.
Family Assist and Guarantor Mortgages
These mortgages allow family members to provide financial support in one of two ways[3]:
Family Assist Mortgages – A family member places savings into an account linked to the mortgage or uses their own property as security.
Guarantor Mortgages – A family member guarantees the mortgage repayments, meaning they step in if the borrower struggles to make payments.
These options can increase borrowing power but also come with risks. It’s important to get expert mortgage advice before making a decision.
Generation Home – Income and Deposit Boosters
Generation Home offers innovative mortgage products that allow friends or family to help with affordability:
Income Booster – A family member can add their income to your mortgage application, increasing the amount you can borrow[4].
Deposit Booster – Family members can contribute towards your deposit in a structured way—either as a loan, a gift, or an equity investment[5].
This flexibility makes it easier for first-time buyers to purchase their home without relying on a traditional lump-sum gift from family.
3. Government Schemes for First-Time Buyers
Beyond mortgage options, there are government-backed schemes designed to make homeownership more accessible.
Lifetime ISA (LISA) – Saving with a Government Bonus
A Lifetime ISA (LISA) helps first-time buyers save for a deposit with a 25% government bonus[6].
You can save up to £4,000 per year.
The government adds £1,000 per year as a bonus.
The money can only be used for a first home worth up to £450,000 or for retirement.
This is one of the best ways to build a deposit quickly, especially for buyers planning their purchase in a few years.
Shared Ownership – Buying a Share of a Home
If a full mortgage is not affordable, Shared Ownership allows buyers to purchase a portion of a property (25%-75%) while paying rent on the remaining share[7].
A mortgage is required for the portion you buy.
You can increase your share over time through a process called “staircasing.”
Shared Ownership is available across the UK, but the details vary by region. A mortgage adviser can explain how it works and whether it’s a good fit for your circumstances.
First Homes Scheme – Discounts for First-Time Buyers
This scheme offers new-build homes at a 30% discount (sometimes more) to eligible first-time buyers. The discount remains in place for future sales, ensuring affordable homes for local buyers[8].
4. Next Steps – Speaking to a Mortgage Adviser
Why Speak to an Adviser?
Getting the right mortgage is about more than just finding the lowest rate. A mortgage adviser can:
Explain all the schemes available and check which ones you qualify for.
Compare mortgage options from multiple lenders, including exclusive deals.
Help with the mortgage application to improve your chances of approval.
Make the process easier by handling paperwork and dealing with lenders on your behalf.
How to Get Started
If you or someone you know is looking to buy their first home, the best place to start is by speaking to a mortgage adviser. They can help you explore your options and take the stress out of the mortgage process.
Buying a home is a big decision, but with the right support, it could be closer than you think.
Final Thoughts
Buying a home may feel challenging, but you don’t have to do it alone. There are government schemes, mortgage options, and mortgage advisers ready to help make homeownership possible.
If you know a first-time buyer, sharing this information with them could make all the difference. And if you’re ready to explore your mortgage options, speak to a mortgage adviser today to take the first step towards homeownership.
Your home/property may be repossessed if you do not keep up repayments on your mortgage.
Sources
1.GOV.UK (2023). The mortgage guarantee scheme. Available at: https://www.gov.uk/government/publications/the-mortgage-guarantee-scheme [Accessed 14 Mar. 2025].
2. Skipton.co.uk. (2025). Track Record mortgages – Skipton’s mortgage for renters. Available at: https://www.skipton.co.uk/mortgages/first-time-buyers/track-record-mortgage [Accessed 14 Mar. 2025].
3. USwitch (2023). Family Assist Mortgages. Available at: https://www.uswitch.com/mortgages/guides/family-assist-mortgage/ [Accessed 14 Mar. 2025].
4. Generation Homes (2025). Income Booster – Generation Home Available at: https://www.generationhome.com/income-booster [Accessed 14 Mar. 2025].
5. Generation Homes (2025). Deposit Booster – Generation Home. Available at: https://www.generationhome.com/deposit-booster [Accessed 14 Mar. 2025].
6. GOV.UK (2025). Lifetime ISA. Available at: https://www.gov.uk/lifetime-isa [Accessed 14 Mar. 2025].
7. GOV.UK (2022). Shared ownership homes: buying, improving and selling. Available at: https://www.gov.uk/shared-ownership-scheme [Accessed 14 Mar. 2025].
8. GOV.UK (2022). First Homes scheme: first-time buyer’s guide. Available at: https://www.gov.uk/first-homes-scheme [Accessed 14 Mar. 2025].
All the information in this article is correct as of the publish date 27th March 2025. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content, and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.
Please be aware that by clicking on to any of the above links you are leaving our website. Please note that neither we nor HL Partnership Limited are responsible for the accuracy of the information contained within the linked site(s) accessible from this page.
