Government Mortgage Schemes

Getting onto the property ladder can feel challenging, but government mortgage schemes are designed to make it more achievable.

In this article, we’ll explain what government mortgage schemes are currently available, how to get one, and which scheme might be right for you. We’ll also cover how a mortgage broker can boost your chances of securing the approval you need.

Two of the most popular schemes are Shared Ownership and Right to Buy, which offer affordable routes to homeownership. If you’re a first-time buyer, you may also find our dedicated First-Time Buyer Mortgages page helpful for additional advice and support.

What government schemes are available for mortgage applicants?

Whether you’re a first-time buyer or a current homeowner, the British government has several initiatives to help mortgage applicants. A broker can share the nuances of each, but in the meantime, below are some brief descriptions of what’s available.

First Homes Scheme

If you’re a first-time buyer looking to buy a new build property, this program was announced in 2020 and offers first-time buyers a discount of up to 30% on their property.

Who is eligible?

Those who can apply for the First Homes Scheme:

• Are you buying a new build valued at less than the regional price cap
• Have an income (either combined or sole) below £80,000 if living outside London or £90,000 inside London

Learn more about the First Homes scheme on the government website.

Shared Ownership

Open to first-time buyers and former homeowners struggling to get a mortgage, the Shared Ownership initiative allows applicants to buy between 10% and 75% of a property from a developer or local authority. Rent is then paid on the remaining portion. This model lowers the size of the mortgage you’d need, making it more affordable. You can then aim to buy more of the property over time.

Use our Shared Ownership Calculator below to determine how much you’d pay in rent and mortgage repayments.

Who is eligible?

Those who can apply for the Shared Ownership scheme:

• Are first-time buyers OR former homeowners
• Earn less than £80k (or £90k in London) per year
• Have a 5% deposit, although some lenders accept no deposit

Right to Buy

This scheme helps those currently living in houses provided by the council in England, Wales, and Northern Ireland (not Scotland) buy that property. Right to Buy homes are usually offered at a reduced rate, and the discount can reduce the size of the deposit you need.

Who is eligible?

Those who can apply for the Right to Buy scheme:

• Have rented from the council for over 10 years
• Aren’t living in Scotland

Mortgage Guarantee Scheme

This is a government initiative aimed at helping people buy a home with a small deposit. The government “guarantees” a portion of the mortgage loan, reducing the risk for the lender and encouraging them to offer mortgages to those with a small deposit.

Who is eligible?

Those who can apply for the mortgage guarantee scheme must meet the following criteria:

• Applicants with a 5% deposit
• First-time buyers, home movers, and previous homeowners
• Looking at a residential property less than £600,000
• Must be your only/main home
• Must be a repayment mortgage (not interest-only)
• You must pass standard affordability checks and credit scores

Help to Build Equity Loan

The Help to Build: Equity Loan was a government pilot scheme designed to help people build their own homes with a 5% deposit. The government provided an equity loan of between 5% and 20% (up to 40% in London) toward the total cost of the land and the build. This scheme officially closed to new applications on March 31, 2025. It is no longer possible to apply for this loan in England, but is still available in Wales until September 2026.

Lifetime Individual Savings Account (LISA)

This is a savings plan rather than an actual mortgage scheme. It’s specifically designed to help people who want to save a deposit to buy their first home or for those who are saving for retirement.

You can save up to £4,000 per year into a ‘LISA’, and the government will add 25% to your savings. So, the maximum government contribution would be £1,000 per tax year.

Who is eligible?

Those who can apply for a Lifetime ISA:

• Must be aged between 18 and 39
• Must be a resident of the UK (or a servant of the crown if overseas)

Other eligibility factors

Aside from each government scheme’s specific criteria, there will also be criteria set by lenders that you’d have to meet.

Factors they’ll be looking at include:

• Your earnings and expenditures: Most lenders base how much they’re willing to loan on 4 or 4.5 times an applicant’s income. Excessive spending would be a red flag, but if your monthly expenditures are within your means, that will strengthen your application.
• Your credit history: It’s possible to get government-backed mortgages with bad credit, but the more favourable your credit history is, the better your chances of approval and of obtaining a lower interest rate.
• Your age: Some lenders won’t offer loans to those over 85 or even 75, but a broker can share details on those who don’t have age caps.
• Your property type: If the property you’re looking to buy isn’t standard – perhaps it’s a prefab home or a listed building – you may need to apply to a specialist lender.

Which scheme should you choose?

The type of government help you should choose will depend entirely on your circumstances and which schemes you’re eligible for.

Questions you should ask yourself to narrow down the available options include:

• Are you a first-time buyer?
• Do you want help raising a bigger deposit or need lower monthly repayments?
• Are you looking to buy a new build?
• Do you currently live in a council house?

How a broker can help you select the right option

Understanding the various schemes and which might be the right fit can be difficult, but some brokers spend each day submitting applications to these schemes and corresponding lenders.

Working with one will mean:

• No wasted time pouring over the details of each scheme. A broker will instantly know which, if any, you qualify for
• One-to-one guidance through the application process. That’s for both the government scheme application as well as the application to a lender, both of which require substantial paperwork
• Access to expert advice on the best lender to apply to. Not all lenders will accept government schemes, but a broker will know which do and which have the most favourable rates

If you want to get in touch, a broker from our team who specialises in government schemes can contact you immediately.

Is there government support for people who can’t pay their mortgage?

Yes. When circumstances change and people find themselves struggling to keep up with repayments, the government can provide mortgage assistance in certain ways.

Access to this support will largely depend on your location.

Mortgage Rescue in Wales: In this scheme, the local council or housing association will assess the property in question and the homeowners’ finances and may offer to purchase a portion of your home, thus lowering the repayments you’d pay or purchase the whole property. In this model, you could stay in the home as a tenant.

Home Owners’ Support Fund: Similar to Mortgage Rescue Wales, this fund, only available in Scotland, supports the Mortgage Rent Scheme and the Mortgage to Shared Equity Scheme. In the Mortgage Rent Scheme, a landlord purchases your property, and you rent it from them, while the Mortgage to Shared Equity scheme sees the Scottish government purchase up to 30% of the home, leaving you with a smaller mortgage.

Support for Mortgage Interest: Should you lose your job, hit pension age, or receive income support from the government, this scheme allows you to take out a loan, with interest, against your home. Rather than monthly repayments, this loan would be paid back when the home is sold later or you decide to transfer ownership.

Aside from government support, you could also approach a broker for other solutions if you struggle to keep up with repayments. They might be able to help work with you to remortgage onto a more affordable deal, be it with the same lender or a new one. They could also assist you with what’s called a payment holiday. This is where you’d agree with the lender to temporarily reduce or halt repayments for a specific period of time.

Speak to a broker experienced in government mortgage schemes

Government-backed mortgages help applicants find their feet in the mortgage market, but they can be stressful to navigate as an additional element of the mortgage process. As such, people often opt not to explore them. But with expert help, you can ensure you’re accessing all the financial support you’re eligible for without second-guessing or wasting time.

We have mortgage advisors on our team who are experts in these schemes and can share, after a quick and free consultation, what you should be applying for. Call 0330 818 7026 or fill out our enquiry form.