Lesser-known schemes that can save home buyers as much as £25,000

Lesser-known schemes that can save home buyers as much as £25,000 Metro Lifestyle reporter Metro Lifestyle reporter Published November 23, 2025 8:00am Share this article via whatsappShare this article via xCopy the link to this article.Link is copiedShare this article via facebook Comment now Comments The housing market is tough, but there are schemes that can help (Picture: Getty Images)

With UK house prices steadily climbing and affordability a growing challenge, getting on the property ladder isn’t easy.

Research from Baratt Homes reveals that 27% of buyers said finding a home within budget was the biggest hurdle, while 21% struggled most with understanding different mortgage options.

And just 12% said they used a purchase scheme to secure their home.

But there are lots of government-backed and developer-led schemes offering as much as £25,000 in financial assistance — and they’re not just for first-time buyers.

Here are five useful schemes designed to help prospective homeowners bridge the affordability gap.

First Homes scheme

A government-backed scheme designed to make initial home ownership more affordable for people on modest incomes, including priority groups such as key workers.

It offers discounts of up to 50% off market value on eligible homes in England, and the discount remains attached to the property for all subsequent sales, ensuring affordability for future buyers.

The homes must be either a new home built by a developer or a home bought through an estate agent but previously purchased through the scheme.

The First Homes scheme helps first-time buyers access homes at below-market prices while maintaining long-term affordability.

• Key benefits: Significant upfront price reductions, promotion of affordable homeownership in targeted groups.
• Important considerations: The home must be resold under the First Homes scheme, meaning reduced potential for capital gains and limited flexibility.

The First Homes scheme helps first-time buyers get on the property ladder (Picture: Getty Images/iStockphoto)

Rezide Equity Loan scheme

This scheme enables buyers to purchase a new build home with only a 5% deposit combined with a 15% equity loan, meaning they only need a mortgage for 80% of the property price.

The loan is capped at £100,000 and carries a fixed 4% interest rate payable when the mortgage is drawn down (the final step in the mortgage process, where legal ownership of the property is transferred to the buyer).

However, repayments fluctuate with the property’s market value, as the loan represents a fixed percentage rather than a fixed sum.

This means if the value of the property increases, so does the amount the buyer has to repay.

The scheme is currently available on developments by Barratt Homes and Persimmon Homes and is supported by Barclays and TSB.

• Key benefits: Lower deposit threshold, reduced mortgage cost, applicable on homes priced up to £660,000 in England and Wales.
• Important considerations: Loan costs increase after the interest-free period and impact on property equity.

The Rezide Equity Loan scheme can be used when purchasing new build homes (Picture: Getty Images)

Own New Rate Reducer scheme

Focused on monthly affordability, this scheme offers exceptionally low fixed mortgage rates on new build homes for the first 2 to 5 years, sometimes below 1%.

The developer will agree to contribute 3% or 5% of the purchase price, which goes to the mortgage lender and therefore reduces monthly payments.

Developers offering the Own New Rate Reducer scheme include Barratt Homes, Persimmon Homes, Taylor Wimpey, and Berkeley Group.

• Key benefits: Substantially lower initial mortgage payments, and developer contribution reduces monthly payments.
• Important considerations: Mortgage rates may increase steeply after the scheme, and buyers must analyse long-term affordability, not just initial rates.

Buyers need to weigh up initial savings with long-term affordability (Picture: Getty Images)

Deposit Boost scheme

For buyers with a 5% deposit saved, the developer could boost it by contributing up to an additional 5% of the sale price, resulting in a 10% deposit in total.

The deposit boost reduces upfront financial barriers without adding repayment burdens.

• Key benefits: Reduced need for large savings, potentially better mortgage rates due to higher deposit size.
• Important considerations: Buyers must confirm the mortgage lender’s acceptance of the deposit boost to avoid complications.

Key Worker Deposit Contribution scheme

This scheme is targeted at key workers, such as teachers and nurses.

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For every £20,000 spent on the purchase price of a new build home, a contribution of £1,000 will be made by the developer towards the deposit – up to a maximum of £25,000.

It aims to facilitate homeownership for essential workers who often struggle to amass sufficient deposit funds.

• Key benefits: Large non-repayable deposit contribution targeted at vital professions.
• Important considerations: Not all roles qualify, and confirmation is required that mortgage lenders will accept the scheme’s contribution towards deposits.

Considerations for buyers

While these schemes provide valuable tools to tackle UK housing affordability, experts urge buyers to:

• Be aware of developer reputations, as housebuilding firms involved in these initiatives have recently faced scrutiny over market competition practices, resulting in a collective £100 million contribution to affordable housing projects.

• Consult mortgage brokers to fully understand the detailed implications, including future remortgaging and property sales conditions.

• Assess long-term costs, not just short-term benefits, especially for equity loans and low introductory mortgage rates that may increase sharply later.

From innovative equity loans to targeted deposit boosts and government-discounted homes, the key lies in choosing the right scheme aligned with personal finances and future plans.

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Careful, informed decisions backed by professional advice will help buyers maximise benefits and avoid pitfalls in a challenging market.

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Get in touch by emailing [email protected].

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