There are 5 key schemes available for people buying new-build homes in the UK, some are available to all purchasers, while others are specifically designed for first-time buyers.

In the market for purchasing a sparkling brand new home? There are lots of schemes that make homeownership more accessible

New Build Mortgages and Low Deposit Schemes

You won’t find new build mortgages and low deposit schemes in the resale market, which makes buying brand new all the more appealing.

For example, New Build Boost is aimed specifically at people buying new-build homes with a low deposit of 5%. Own New – Rate Reducer is a new build mortgages initiative designed to reduce monthly repayments.

There’s also Shared Ownership and First Homes, which give extra options to suit your personal circumstances. Let’s take a look at the different buying schemes available.

Scheme Who it’s for Minimum deposit Key benefit
Own New Rate Reducer All buyers Not specified Rates from sub-1%
Shared Ownership All buyers 5% of your share Buy from 10% of property
New Build Boost All buyers 5% 15% interest-free loan
First Homes FTBs & key workers Standard 5-10% 30% to 50% discount
Lifetime ISA FTBs aged 18-39 N/A 25% bonus up to £1k/year

Own New – Rate Reducer

Own New – Rate Reducer is a buying scheme that offers lower mortgage rates for new-build home buyers. In some cases, even sub-1% rates could be available.

The scheme, launched by finance firm Own New, is open to people who buy a new-build home, whether they’re a first-time buyer or an existing homeowner.

Rate Reducer works by effectively using housebuilders’ budget for incentives to slash buyers’ monthly mortgage payments over a fixed term. For example, if a housebuilder offers a 5% discount on one of its new homes, Rate Reducer would take this sum and offset it against the mortgage interest.

Mortgage rates will depend on a variety of factors, such as the housebuilder’s incentives budget, the lender and the size of the buyer’s deposit

Say the housebuilder offers a 5% incentive and you take out a £350,000 mortgage on a 40-year term at 60% loan to value (LTV). The mortgage rate could drop from 4.79% to 0.99% over a 2-year term. That could mean monthly payments of £883 – a monthly saving of £756.

Multiple mortgage lenders, including Halifax and Virgin Money, brokers and more than 200 housebuilders are participating in the scheme.

Shared Ownership

Stepping onto the first rung of the property ladder may feel daunting – but Shared Ownership could give you a leg up and help you to own a home that may otherwise have been unaffordable.

With Shared Ownership, you only pay the deposit on – and need a mortgage for – the share of the property you’re buying.

That means the amount of money you need for the deposit is a lot lower than it would be if you were buying the whole property outright.

The share you buy is usually between 25% and 75% of the total property, but with some homes, it can be as little as 10%.

You pay a mortgage on the share you own, and reduced rent on the portion you don’t own. That part is usually owned by a housing association, private developer or local authority.

As time goes on, you can increase your share in the property by buying more of it in increments, until you own all of it outright or are ready to sell it.

New Build Boost

New Build Boost launched in 2025. It aims to boost your borrowing power by providing an interest-free equity loan worth 15% of the home you’re buying.

You only need a 5% deposit and with the loan topping you up, you’ll be assessed against an 80% loan-to-value (LTV) criteria, which can give you access to better mortgage rates.

The scheme is open to both first-time buyers and existing homeowners buying a new-build. New Build Boost is running at all Persimmon and Charles Church developments, as well as at a wide selection of Lovell Homes sites.

What’s more, the equity loan is interest-free for the whole mortgage term duration and its value is fixed for the first 5 years. After that, it adjusts in line with the market value, capping the repayments at twice the original loan amount.

In a nutshell, New Build Boost means you need to save less for a deposit but you get access to a decent mortgage rate thanks to the equity loan top-up.

First Homes

The First Homes scheme launched in 2021 to help local first-time buyers and key workers onto the property ladder. It offers new-build homes at a 30% – 50% discount.

The reduced rates will apply to the homes forever, meaning that buyers on a low income will continue to benefit every time the property is sold.

The government has pledged a further 10,000 properties will be added to the First Homes scheme every year.

To qualify for the First Homes discount, buyers need to meet certain criteria:

  • You must be a first time buyer. That means that anyone who has ever inherited or been gifted a home is ineligible.

  • You must earn less than £80,000 (or £90,000 in London), whether you’re buying solo or as part of a couple.

  • The property you’re buying must cost no more than £250,000, or £420,000 in London.

  • You must already work or live in the area you’re wanting to buy in, or have a connection to it. Say you grew up there or have family there, for example.

  • Key workers will be prioritised.

Lifetime ISA

The Lifetime ISA is open to buyers of any type of property.

A Lifetime ISA is an ISA with benefits. You can save up to £4,000 a year with one and the government will chip in an extra 25% on top. That’s up to £1,000 per year for free.

If you’re worried about how you’re ever going to save up enough to buy a place, a Lifetime ISA could earn you thousands of free cash for your first home.

Lifetime ISAs can be used by anyone saving up for their first pad – or for retirement. You can open one up if you’re between 18-39 and you can keep stashing cash away in it until you’re 50.

You earn tax-free interest on whatever you save and what the government contributes, which in turn earns interest the next year. That’s called compound interest.

The government has announced it will close Lifetime ISAs to new applicants some time in 2028, probably April. If you already have a Lifetime ISA or open one before the scheme closes, it will continue as is when the scheme closes.

A new way to save for a deposit – the First-Time Buyer ISA – will take over when Lifetime ISAs end. There won’t be an age cap on opening or paying into a First-Time Buyer ISA, and there will be no withdrawal penalties.

Developer incentives

In addition to all of these buying schemes, many housing developers will also offer incentives to help buyers to secure a new-build home.

They can include:

  • Paying the buyer’s stamp duty

  • Making a financial contribution towards a deposit

  • Paying the buyer’s legal fees

  • Paying the rent on a Shared Ownership property for a period of time

  • Free soft furnishings packages, including blinds and curtains

  • Free upgrades on flooring and appliances

  • Offering free family travel cards in the area

Each developer will have their own range of offers available, so it’s worth checking in with them when viewing new properties.

Deposit Unlock

Deposit Unlock was a scheme run by the house-building industry that enabled people to buy a new-build home with just a 5% deposit. The scheme closed to new applicants in April 2026, but your lender will still honour the scheme if your mortgage offer is outstanding.

Help to Build

The Help to Build Equity Loan Scheme ended in March 2025. It was a government initiative designed to financially support self-builders who wanted to create their own homes.

Key takeaways

  • There are currently 5 main schemes supporting new-build purchases in the UK: Own New – Rate Reducer, Shared Ownership, New Build Boost, First Homes and the Lifetime ISA. Each scheme is designed for different types of buyers and financial circumstances.
  • Own New – Rate Reducer can reduce mortgage rates to below 1% for an initial fixed period by using incentives offered by the house builder to help cover mortgage interest. The scheme is available to existing homeowners as well as first-time buyers.
  • Shared Ownership allows buyers to purchase a percentage of a property — usually between 25% and 75%, although some properties allow an initial share of just 10%. Buyers pay a mortgage on the portion they own and rent on the remaining share, with the opportunity to purchase additional shares later.
  • First Homes provides eligible first-time buyers and key workers with discounts of between 30% and 50% on selected new-build properties. Applicants must generally have an income below £80,000 (£90,000 in London), while the property price is capped at £250,000 (£420,000 in London).