What support is available for first-time buyers?
Rising house prices and the cost of saving up for a deposit are big hurdles for anyone trying to buy their first home. There is support available for first-time buyers including government-backed schemes and Stamp Duty Land Tax relief. At Warwickshire Mortgages, we’re here to help. In this guide, we look at what’s available so you can afford to purchase your first home.
What help can first-time buyers get?
There are several ways to help first-time buyers to get onto the property ladder, including:
- Stamp Duty Land Tax relief
- Mortgage Guarantee Scheme
- Shared Ownership properties
- First Homes Scheme
The right options for you will depend on the size of your deposit, income, location, and the type of property you’re looking to buy.
First-time buyer Stamp Duty tax relief
Stamp Duty is an additional cost burden for home movers. However, first-time buyers in England can benefit from Stamp Duty Land Tax relief. Depending on the property price, this could reduce the amount of tax payable when you buy your first home.
Under the current relief (June 2026):
- No Stamp Duty is payable on the first £300,000 of the property purchase price.
- 5% Stamp Duty is applied to the portion between £300,001 and £500,000.
- If the purchase price is above £500,000, then first-time buyer relief won’t apply, and standard rates are used instead.
It’s important to note that even if no Stamp Duty is due, you will still need to submit a return to HMRC to claim the tax relief. Your solicitor or conveyancer will usually handle this as part of the purchase process, but it’s worth checking with them early on.
Mortgage Guarantee Scheme
The Mortgage Guarantee Scheme can help first-time buyers purchase their first property. If you only have a small deposit around 5%, then this scheme could help you access a wider range of mortgage products. It provides a government guarantee to participating lenders, which can make them more willing to offer higher loan-to-value mortgages. Although this doesn’t reduce the amount you borrow, it can make it easier to get a mortgage.
However, it’s worth noting that many lenders already offer 95% mortgages without using the Mortgage Guarantee Scheme. Ask a qualified mortgage adviser to find the right deal for you.
Government house buying schemes
If you’re struggling to afford a home, these government house buying schemes are designed to keep homes affordable in local communities:
- Shared Ownership – this allows you to purchase a share of a new-build home and some existing properties, usually between 10% and 75%. You would then pay rent on the remaining portion. As you’re only buying part of the property, the deposit is usually much smaller than a standard purchase. Over time, you can buy additional shares in the property, known as “staircasing.”
- First Homes Scheme – this can offer a discount of at least 30% off the market value of a new-build home for an eligible buyer. The discount is permanent and passes on to the next buyer when the property is sold. Eligibility criteria varies with preference sometimes given to key workers or people already living in the area. You will need to check the specific guidance in the location where you are hoping to buy.
Are you looking for a first-time buyer mortgage?
Buying your first home can feel overwhelming but at Warwickshire Mortgages, we are here to help. Our experienced team will answer your mortgage questions, and we’ll talk you through the entire process. We will support you throughout your homeownership journey.
For more information, see our First Time Buyers Guide: Finding your first home and 5 Things Every First Time Buyer Should Know.
For first-time buyer mortgage advice, book a free, no-obligation chat with our expert team.