If you’ve never owned a home, getting on the property ladder can feel really daunting, especially if you’re in your 50s and have rented for several decades.
After all, house prices are high and the affordability criteria you need to meet to qualify for a mortgage can be strict – and if you don’t have a big deposit saved, it can be really tough to find a deal at all.
That’s why we’ve put together this list of government-backed schemes that can help you buy a home or get accepted for a mortgage, all of which are open to people aged over 50. However, bear in mind that most – but not all – of these are only available to first-time buyers, so won’t be right for you if you already own a property and are looking to move home, or if you want to invest in a buy to let property.
It’s worth noting that the age at which most lenders start to restrict lending based on age has been pushed back quite significantly in recent years, with many lenders extending the maximum age they will consider at the end of the mortgage term. So age shouldn’t be a barrier to getting onto the property ladder. You can find out more in our guide Mortgages for over 50s: what you need to know.
Want to speak to a mortgage advisor? Speaking to an experienced mortgage advisor can help you to understand your options and get a great deal on your mortgage.
If you’re looking for expert mortgage advice, you can get a free consultation with an independent mortgage adviser at Fidelius. Speak with a qualified, FCA-regulated, independent mortgage adviser you can trust. Rated 4.7/5 on VouchedFor from over 1,250 reviews.
First Homes scheme
The First Homes scheme offers first-time buyers a discount on selected homes, and is currently only offered in England.
The scheme allows you to buy a home at a 30% to 50% discount off the usual price. To apply, you must be a first-time buyer, able to get a mortgage for at least half the value of the home, and not earn more than £80,000 a year before tax (or £90,000 if the property is in London). Bear in mind that if you are buying jointly, this limit applies to all buyers. Your income is considered collectively, so if you earn more than £80,000 a year combined, you won’t be eligible.
Local councils may set their own eligibility criteria as well. Certain councils will prioritise key workers, for example, people who already live in the area or people on lower incomes for the scheme.
You can’t buy just any property through the scheme – local developers and estate agents will advertise certain homes as being offered through First Homes. These will always be new builds worth £250,000 or less (£420,000 or less in London), though local councils can lower the maximum price.
In order to apply for the scheme, you must find a property that is offered through the scheme and contact the developer or agent, letting them know you wish to buy through First Homes.
Once you’ve bought a property through the scheme, it’s yours, and you won’t have to sell it if your income increases above the threshold. However, there are specific rules about letting and selling the property. You can read about these, and more about the scheme in general, at GOV.uk.
Mortgage Guarantee scheme
The Mortgage Guarantee Scheme was extended for the second time in last year’s Autumn Budget – it will now run until June 2025.
This scheme works with lenders to provide 95% LTV mortgages to prospective homebuyers, allowing them to purchase property with a deposit as low as 5%. The “guarantee” element comes from the government promising to repay the lender a percentage of the loan in case of a default, providing a safety net to lenders and allowing them to offer these deals – which they would normally consider too risky.
To qualify for the Mortgage Guarantee scheme, you must be buying a main residential home, and it must be worth £600,000 or less, and not a new build. The mortgage must be repayment-based – not interest-only – and you still have to meet the rest of the lender’s eligibility criteria, including credit checks.
You can read about how it works and how to apply in our article How does the Mortgage Guarantee Scheme work?
Shared Ownership scheme
Shared Ownership is a scheme that allows you to buy a share in a property and live there as your main residence. You then pay rent on the remaining share to your landlord or housing association.
So, for example, if you buy a 50% share in the home, you’ll pay rent at a rate of half the amount you would pay normally.
Like the First Homes scheme, Shared Ownership is only offered on certain properties, typically new builds. Some organisations and websites specialise in selling Shared Ownership homes, or you may be able to find one through your local council or housing association.
Your household income must be £80,000 or less (£90,000 in London) to qualify for Shared Ownership, and you must be unable to meet the mortgage costs (deposit and repayments) for a home that meets your needs.
One of the following must also apply:
- You are a first-time buyer
- You used to own a home but can’t afford one now
- You own a home and want to move, but can’t afford a new home that meets your needs
- You’re forming a new household, for example, after separating from a partner
- You’re a current shared homeowner and want to move.
If you wish, you can buy increased shares in your home after moving in through a process known as ‘staircasing’, meaning you will own more equity, pay less rent and earn more profit if you sell the home. Landlords and housing associations will have different rules around staircasing, such as how big a share you can buy at a time and how often – make sure you check the rules carefully.
If you are aged 55 or over, you can buy through Older Persons Shared Ownership (OPSO). This means that you can only buy up to 75% of the home, so you can never own it outright – however, if you reach this amount, you won’t have to pay rent on the remaining 25%, so it can work out very cheaply.
You can read more about the Shared Ownership scheme in our article Shared ownership: the pros and cons.
Help to Buy and Homebuy schemes (Wales only)
The Help to Buy scheme is now closed to new applicants in most parts of the country, except Wales, where it will close in March 2025.
This scheme allows applicants to take out an equity loan directly from the government, worth up to 20% of the price of a property to be used as a main residence. The property must be a new build worth £300,000 or less.
You need a deposit of at least 5% to apply. So, assuming you put down a 5% deposit and take out a 20% loan, you would only need a mortgage for 75% of the property value.
A Help to Buy loan is interest-free for the first five years, after which you will be charged a rate based on the Consumer Prices Index (CPI) measure of inflation. Read more about Help to Buy at gov.wales.
Alternatively, you may be able to get a 30% loan through the Home Buy scheme. This is only available in certain rural areas where there are fewer opportunities to buy property. You can find out more about the Home Buy scheme at gov.wales.
Right to Buy scheme
The Right to Buy scheme was introduced to allow people living in council housing the right to buy their homes at a discounted rate. It is currently only available in England and Northern Ireland.
There is a maximum discount you can get, which increases each tax year in line with inflation. In the 2023/24 year, this is £96,000 in England, or £127,000 in London. The exact discount you’ll be entitled to is based on the value of the property, how long you’ve lived there, and whether it’s a house or flat. You can use this calculator to estimate the discount you could receive.
You can read more about Right to Buy in our article and how to apply in our article Right to buy: buying a council house.
Seeking mortgage advice
Whether you qualify for any of these schemes or not, if you want to understand your mortgage options better it can be well worth seeking mortgage advice from a professional.
Want to speak to a mortgage advisor? Speaking to an experienced mortgage advisor can help you to understand your options and get a great deal on your mortgage.
If you’re looking for expert mortgage advice, you can get a free consultation with an independent mortgage adviser at Fidelius. Speak with a qualified, FCA-regulated, independent mortgage adviser you can trust. Rated 4.7/5 on VouchedFor from over 1,250 reviews.
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