The original Help to Buy Equity Loan closed in 2022. But several schemes still help first-time buyers in Birmingham.
Current Schemes
Help to Buy ISA – Closed to new accounts, but existing accounts can save until November 2029 and claim bonus until November 2030. 25% bonus up to £3,000.
Lifetime ISA – For ages 18-39. 25% bonus on up to £4,000/year. Use for first home up to £450,000. Penalty for other withdrawals.
Shared Ownership – Buy 25-75% share, pay rent on remainder. Available through housing associations with income caps.
First Homes Scheme – New-builds at 30-50% discount. Limited availability in Birmingham.
Mortgage Guarantee Scheme – Enables 95% mortgages through government guarantee to lenders.
Lifetime ISA in Detail
Save £4,000/year for 4 years = £16,000 + £4,000 bonus = £20,000 for deposit.
Rules: Property up to £450,000, must use a mortgage, ISA open 12+ months before use.
Shared Ownership Explained
Purchase a share, take a mortgage on your share, pay rent on housing association’s share. Combined costs typically less than buying outright.
Housing associations in Birmingham include Midland Heart, Bromford, Platform Housing, and Citizen.
Staircasing allows buying additional shares toward full ownership over time.
First Homes in Birmingham
30-50% discount from market value. Discount passes to future buyers. Check with Birmingham City Council for availability.
Comparing Options
| Scheme | Best For | Requirement |
|---|---|---|
| Lifetime ISA | Building deposit | Under 40 |
| Shared Ownership | Lower income buyers | Income under £80k |
| First Homes | Permanent discount | Meet local criteria |
| 95% Mortgage | Standard purchase | 5% deposit |
Combining Support
You can often combine schemes – e.g., Lifetime ISA toward Shared Ownership deposit.
Getting Mortgage-Ready
Whatever scheme you use, you’ll need adequate income, clean credit, deposit savings, and stable employment.
Talk to Us
SJ Financial Solutions helps first-time buyers across Birmingham. Contact us to discuss your options.
