First-time buyers · 4 min read
First-time buyer schemes in 2026: what still exists and what's worth it in Southampton: the practical take
Help to Buy closed, but the Lifetime ISA, Shared Ownership, and First Homes are alive. Here's an honest look at each — and what actually helps a first-timer in Southampton.
Help to Buy closed, but the Lifetime ISA, Shared Ownership, and First Homes are alive. Here's an honest look at each — and what actually helps a first-timer in Southampton.
Lifetime ISA (LISA)
Save up to £4,000/year and the government adds 25%. Use for a first home up to £450k (nationwide). Not worth it above the cap — the withdrawal penalty removes the bonus.
Shared ownership
Buy 25–75% of a home, rent the rest from a housing association. Deposit is on the share you own. Watch the service charges — some estates run £2,000+/year.
First Homes scheme
New-build discounts of 30–50% for local first-time buyers under £250k household income. Discount stays with the home forever, so resale is restricted.
Mortgage guarantee scheme
95% LTV mortgages backed by the Treasury. Rates are 20–50bps above 90% deals but the deposit hurdle drops massively.
Family-assisted mortgages
Joint Borrower Sole Proprietor (JBSP), Family Springboard, Gifted Deposit. Each has tax and legal ripples — get advice before signing.
Frequently asked questions
- Can I use a LISA with Shared Ownership?
- Yes, provided the full market value is under £450k.
- Is 95% LTV a bad idea?
- Not if you plan to stay 5+ years. The rate premium is small compared to rent.
