Getting Your First Mortgage: Government Help and Smart Options for First-Time Buyers

Buying your first home is one of life’s biggest milestones—but let’s be honest, it can also feel pretty daunting. Between saving for a deposit, figuring out which mortgage suits you, and keeping up with house price trends, it’s easy to feel overwhelmed.

The good news? There are several government schemes and creative mortgage options out there specifically designed to support first-time buyers. Whether you’ve just started saving or you’re nearly ready to buy, here’s a breakdown of the help available and how to make the most of it.

Step One:

🔑 Low-Deposit Mortgages

Many first-time buyers assume they need a hefty deposit, but that’s not always the case. There are several ways to get on the property ladder with just 5%—or even no deposit at all.

💸 95% Mortgages

These mortgages let you buy with only a 5% deposit. They’re widely available from major lenders and are a popular route for first-time buyers. While the interest rates may be slightly higher than if you had a larger deposit, they’re a solid way to get started sooner.

🛡️ Mortgage Guarantee Scheme

This government initiative encourages lenders to offer 95% mortgages by backing part of the risk. It’s available until June 2025, making it a timely option if you're planning to buy within the next year.

🏠 100% Mortgages for Renters (Track Record Mortgage)

If saving for a deposit has been the main hurdle, you can achieve 100% mortgage for renters who’ve consistently paid rent for at least 12 months. No deposit needed—but there are some eligibility criteria. It’s a bold new route for those who’ve proven financial discipline through rent.

Step Two:

👨‍👩‍👧‍👦 Family-Backed Mortgages – Making Home Buying a Team Effort

If your family wants to help, there are structured ways to make their support count without gifting large sums upfront.

🏡 Family Assist & Guarantor Mortgages

• Family Assist: A family member can either place money in a linked savings account or use their property as security.

• Guarantor Mortgages: A loved one guarantees your mortgage repayments—meaning they step in if you can’t pay.

Both options can increase what you’re able to borrow, but it’s important to understand the responsibilities involved.

🌱 Generation Home: Income & Deposit Boosters

A more modern take on family support, Generation Home allows family members or friends to:

• Top up your income to increase your borrowing power.

• Contribute to your deposit as a gift, loan, or investment.

It’s a flexible option for buyers who need a little extra help but want to keep things structured and fair.

Step Three:

🏘️ Tap Into Government Schemes.

📈 Lifetime ISA (LISA)

Save up to £4,000 a year, and the government adds a 25% bonus—up to £1,000 annually.

Key things to know:

• You must be aged 18–39 to open one.

• Funds must be used for your first home (up to £450,000) or retirement.

• The account must be open for at least 12 months before you buy.

It’s a fantastic long-term way to grow your deposit faster.

🧩 Shared Ownership

Buy a share of a home (as little as 25%) and rent the rest. You can buy more of the property over time (“staircasing”), which makes homeownership more flexible and affordable.

Shared Ownership is available across the UK, and options vary by location. Major Finacial Services can walk you through the process.https://www.major-financial.co.uk/contact

💷 First Homes Scheme

Ideal for key workers and local first-time buyers, this scheme offers new-build homes at a 30%–50% discount. The discount stays with the property for future sales, helping to keep homes affordable for generations.

Step Four:

👣 Talk to a Mortgage Adviser

Mortgages can be complex. Rates, fees and eligibility.... A mortgage adviser can:

• Show you which schemes you’re eligible for.

• Compare deals from a wide range of lenders.

• Guide you through the paperwork and help avoid delays.

• Improve your chances of getting approved, even with a smaller deposit.

🎯 Ready to Take the First Step?

If you’re dreaming of your first home, now’s the time to take action. Start by checking your credit score, exploring your deposit options, and speaking to an adviser who can help tailor a plan just for you.

There’s no one-size-fits-all when it comes to mortgages, but with the right guidance and support, that dream home could be closer than you think.

Quick Reminder:Your home may be repossessed if you do not keep up repayments on your mortgage.