The phrase what discount do first time buyers get sounds simple, but the honest answer is that there is no single discount applied to every purchase. In the UK, first-time buyers may benefit from tax relief, scheme-based support, lower deposit options and, in some cases, incentives from developers. Which of these actually applies depends on the property, your deposit, your income and the lender’s criteria.
That matters because many buyers begin their search assuming they will receive a straightforward percentage off the purchase price. In practice, the savings are usually more specific than that. Some reduce your upfront costs, some make borrowing more accessible, and some are only available in certain circumstances.
What discount do first time buyers get in the UK?
For most first-time buyers, the clearest financial benefit is Stamp Duty Land Tax relief in England, rather than a blanket discount from the seller or lender. If you are buying your first home and meet the rules, you may pay less SDLT than someone who has owned property before. That can make a meaningful difference to your moving costs, especially when you are already paying for a deposit, legal fees and surveys.
Beyond tax relief, there may also be first-time buyer schemes or incentives. These can include low-deposit mortgage products, shared ownership options, lifetime ISA bonuses and occasional developer contributions. None of these should be treated as automatic. Some are useful, some are limited, and some can affect your negotiating position.
Stamp Duty relief is often the biggest saving
When buyers ask what discount do first time buyers get, Stamp Duty is usually the first place to look. In England, first-time buyer relief can reduce the SDLT payable on a qualifying property purchase. The amount saved depends on the price of the property and the current tax thresholds in place at the time you buy.
This is not a cashback scheme and it does not reduce your mortgage balance. It simply lowers, or in some cases removes, part of the tax bill you would otherwise face. For a buyer trying to pull together all the upfront costs of moving, that can free up money for fees, furnishing or a slightly larger deposit.
There are limits, though. Relief only applies if you meet the first-time buyer definition and if the property price falls within the qualifying range. If you are buying above that threshold, the position changes. Rules can also be updated by the government, so it is worth checking the current figures rather than relying on older examples.
A Lifetime ISA can add to your deposit
For eligible buyers, a Lifetime ISA can feel like a discount because the government adds a bonus to your savings. If you are aged between 18 and 39, you can save into a Lifetime ISA and receive a 25% government bonus, subject to annual limits and scheme rules.
That extra contribution can make a real difference when you are trying to reach a lender’s minimum deposit. It is particularly helpful for buyers who are disciplined enough to save over time rather than rush into a purchase before they are financially ready.
There are trade-offs here as well. The account has rules on withdrawals, property value limits and timing. If you need access to the money for a reason other than an eligible home purchase or later life, penalties can apply. So while the bonus is attractive, the product needs to fit your plans.
Low-deposit mortgages are support, not a discount
Many first-time buyers are also thinking about 5% deposit mortgages. These are not discounts in the usual sense, but they can reduce the amount you need to save before buying. That can bring home ownership within reach sooner.
The compromise is that borrowing with a smaller deposit usually means a higher loan-to-value mortgage. Lenders often price these products differently because the risk is greater. In simple terms, you may need less cash upfront, but your monthly payments or interest rate may be higher than someone buying with a larger deposit.
This is where advice matters. The cheapest-looking route into a property is not always the most suitable long-term option. Sometimes waiting a little longer and increasing your deposit opens up better products and lower monthly costs.
Shared ownership and similar schemes
Some buyers can access home ownership through shared ownership or other affordable housing arrangements. Again, this is not the same as receiving a straightforward discount on the asking price, but it can reduce the immediate cost of buying because you purchase a share of the property and pay rent on the remainder.
For the right buyer, this can be a practical stepping stone. It can help if a full market purchase is out of reach but you still want to move away from renting. The deposit required may also be lower because it is based on the share you are buying rather than the total property value.
That said, shared ownership is not suitable for everyone. There are rent payments, service charges and rules around staircasing if you want to buy a larger share later. It is important to understand the full cost rather than focus only on the lower entry point.
Developer incentives on new-build homes
If you are buying a new-build property, the developer may offer incentives that effectively reduce your costs. This could include a contribution towards legal fees, flooring, upgrades, a deposit contribution or, in some cases, a price reduction.
This is one of the few situations where a first-time buyer might see something that looks more like a true discount. Even so, it is not always as generous as it first appears. Developers may prefer to offer extras instead of reducing the headline purchase price, particularly if they want to protect values on the wider development.
Lenders also pay close attention to incentives on new-builds. If the package is significant, it can affect the lender’s valuation or how the purchase is treated for mortgage purposes. What matters is the genuine market value of the property, not just the sales wording used by the builder.
Do lenders offer first-time buyer discounts?
Some lenders market products specifically for first-time buyers, but that does not always mean they are discounted in the way people expect. A lender may offer a lower arrangement fee, cashback, flexible underwriting or products designed for smaller deposits. Those features can help, but they should be assessed alongside the interest rate, term and total cost.
A product aimed at first-time buyers may be easier to access, but it is not automatically cheaper than the rest of the market. In some cases, the opposite can be true if the borrower has only a small deposit or a more limited credit profile.
That is why it helps to compare the overall package rather than focus on one feature. A fee-free mortgage with a higher rate may cost more over time than a product with a fee and a lower rate.
The discount depends on your situation
Two first-time buyers purchasing homes at similar prices can receive very different levels of support. One may qualify for Stamp Duty relief and use a Lifetime ISA, while another may also secure a developer contribution. Someone buying a resale property with a 10% deposit will have different options from a buyer looking at a new-build flat with 5% down.
Your employment status, credit history and chosen property type can all affect what is available. Flats above commercial premises, certain new-build homes and non-standard construction properties can all create added complexity. In those situations, the question is not just what discount do first time buyers get, but which routes are realistically available to you.
For buyers in Windsor and the surrounding area, this can be especially relevant where property values may push certain purchases beyond the range where some support is most useful. The local market can change what is practical, even when the national schemes remain the same on paper.
How to think about first-time buyer savings
It is usually best to think in terms of total buying cost rather than a headline discount. The real savings may come from paying less tax, using a savings bonus, reducing lender fees or accessing a more suitable mortgage product. A lower purchase price is only one part of the picture.
A good first step is to work out your budget in full. That means looking at deposit, Stamp Duty if applicable, conveyancing, survey costs, moving expenses and a sensible buffer for after completion. Once those numbers are clear, it becomes easier to judge which first-time buyer benefits will genuinely help.
If you are unsure which schemes or products apply, getting advice early can save time and disappointment later. Illingworth Mortgages helps first-time buyers understand what support may be available and, just as importantly, whether it is the right fit for their circumstances.
The best discount is not always the one that sounds biggest at the start – it is the one that leaves you in a stronger, more manageable position once you have the keys.