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What help is there for first time buyers in 2026?

Owning your first home can feel like an overwhelming dream. Homeownership can feel completely out of reach, with the average first time buyer needing to save nine times their
salary to own a home, meaning it can take eight years to save for a deposit. On top of this, house prices have increased 104% in the last 50 years, even when adjusting for inflation!

But the good news? There’s more innovation than ever, with numerous schemes and solutions designed to make buying more accessible and affordable for those looking to take
their first step onto the ladder.

Let’s go over some of the best options for first time buyers.

First time buyer schemes

Lifetime ISA: Boost your deposit savings

Saving for a deposit is one of the biggest obstacles for first time buyers, but a Lifetime ISA (LISA) can give your efforts a major boost. With a LISA, you can save up to £4,000 tax-free
every tax year, and the government will boost your savings by 25%, giving you up to £1,000 free each tax year. This means if you maxed out your LISA every year for five years, you’d get
a £5,000 bonus from the government – bringing your total deposit to £25,000!

Plus, if you’re buying with a partner who’s also a first time buyer, they can also open a Lifetime ISA. If you both max out your Lifetime ISAs each year for five years, you’d get £10,000
from the government for your deposit together. Plus, with the Tembo Cash Lifetime ISA, you’ll earn hundreds more in interest compared to the next best provider on the market, thanks to our market-leading interest rate*.

Ineligible withdrawals may return less than paid in. You must be 18 to 39 years old to open a Lifetime ISA. Tax treatment depends on individual circumstances and may be subject to change in the future. A Lifetime ISA must be open for at least 12 months before being used to buy a first home worth
£450,000 or less. Withdrawals from a Lifetime ISA for any purpose other than buying a first home (up to a value of £450,000) or for retirement (60+) incur a 25% government penalty, meaning you may get back less than you paid in.

Savings as Security: Help from family

With a Savings as Security mortgage, a family member’s savings can act as a guarantee, which could allow you to secure a home without needing your own deposit. They place
usually 10% of the property’s value in a special savings account held by the lender. After five years, provided mortgage repayments are on track, their savings are returned with any interest accrued. Keep in mind, though, if you don’t keep up with your monthly repayments, your guarantor might not get all of their savings back.

Deposit Boost: Unlock the value in family homes

If your family owns their own home, a Deposit Boost enables them to tap into their equity to release money that can be used as your house deposit, or contribute to it. This approach not only increases your buying budget but can also help you secure better interest rates by putting down a larger deposit, lowering your Loan to Value (LTV).

If your loved one is willing to help, they will need to take on a small mortgage to unlock the money from their home. This means they’ll need to pass a credit check and prove affordability before being approved.

Higher lending: Increase your borrowing power

A loved one could also help you borrow more through an Income Boost, in which they add all or some of their income to your mortgage application. By doing so, your relative acts as a guarantor for your mortgage payments without owning a share of your property – it’s completely under your name. With their income added to yours, you could be able to boost your borrowing potential.

Be aware that as a guarantor, they are legally liable for the mortgage debt if you cannot make your repayments.

Low or no-deposit mortgage options

For those without a hefty deposit saved or a family who can help, there are other pathways to homeownership.

• Low-deposit mortgages – Many high street lenders now offer 5% mortgages, as well as the government’s Mortgage Guarantee scheme, which also could allow you to purchase with as little as 5% saved.
• No-deposit mortgages like Skipton’s Track Record Mortgage could enable you to use your rental payment history as proof that you can afford mortgage repayments.
• 5.5x Income Mortgage or a Professional Mortgage – These products allow you to borrow more than a standard mortgage based on your household income or your profession. Certain key worker schemes, including NHS and other public sector professional mortgages, can also help eligible buyers access higher borrowing limits, making it easier to get on the property ladder even with a smaller deposit.

By putting down a smaller deposit, you’ll be borrowing at a higher loan-to-value (LTV), which can often mean higher interest rates and monthly repayments. Low deposit or higher
lending schemes often have strict eligibility criteria or limited lender options, so it is important to consider all your options or seek expert advice on what you’re eligible for before
applying.

Shared Ownership

If buying outright feels out of reach, Shared Ownership lets you purchase a share of a property (often between 10% – 75%) while paying rent on the remaining share. Over time, you can buy additional shares, staircasing your way to full ownership. To qualify, you’ll need to pass affordability checks to ensure you can afford to pay the rent payments and buy more of the property over time.

Take the first step

Getting your foot on the ladder might feel daunting, but with the right tools and team behind you, it’s achievable. Complete Tembo’s free mortgage fact-find today to discover all the ways you could get on the ladder. Our smart tech will compare your eligibility to thousands of mortgages and innovative schemes, showing you all the ways you could buy. It’s free, takes just 10 minutes, and there’s no credit check involved. Get started here.

Attend the London Home Show

Tickets for the London Home Show are free, but visitors must register in advance to attend. For more information, or to reserve your place at the capital’s no.1 first time buyer event, please visit the event page.

Share to Buy lists thousands of affordable properties across the country, including those available through Shared Ownership, Rent to Buy, and Discount Market Sale. Learn more about the different buying and rental schemes available today.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

This article is for information only and does not constitute financial advice. Think carefully before securing other debts against your home. Mortgage availability and terms depend on individual circumstances. This information is provided by Tembo. Tembo Money Limited is authorised and regulated by the Financial Conduct Authority in relation to mortgages and insurance advice (reference number 952652). Tembo Savings Limited provides individual savings accounts and is authorised and regulated by the Financial Conduct Authority (reference number 928010) and a HMRC-approved ISA Manager (reference number Z2046). We are private limited
companies registered at 18 Crucifix Lane, London, SE1 3JW.

*Rates are accurate as of 11th March 2026. Calculations show at month 61 (after five years), Tembo customers saving at 4.5% would have £581 more than with the closest market competitor. AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year.