First-Time Buyer Schemes in Kent: How to Afford Your First Home in 2026 (Medway and Rochester Guide)

Written by the mortgage advisers at Yomo Finance, whole-of-market brokers based in Rochester, helping first-time buyers across Medway and Kent.

TL;DR: What help is available for first-time buyers in Kent in 2026?

You can buy your first home in Kent with as little as a 5 percent deposit, and several schemes exist to close the gap between saving and buying. The four main routes in 2026 are the Mortgage Guarantee Scheme (which supports 95 percent mortgages on homes up to 600,000 pounds), the Lifetime ISA (a 25 percent government bonus on up to 4,000 pounds a year), Shared Ownership (buy a share of a home and pay rent on the rest), and First Homes (at least a 30 percent discount on selected new builds). On top of that, most first-time buyers in Medway and Rochester pay no stamp duty at all, because first-time buyer relief removes it on homes up to 300,000 pounds. Which combination saves you the most depends on your deposit, your income and the property you want. Speak to Yomo Finance about your first mortgage.

Buying your first home in Kent can feel like a moving target. Prices in Medway, Rochester and the surrounding towns have held up well, deposits take years to build, and the rules around government help change often. The good news is that there is more support available in 2026 than many buyers realise, and used together these schemes can bring a first purchase forward by years. This guide explains each option in plain terms, shows how much deposit you actually need, and helps you work out which route fits your situation.

How much deposit do first-time buyers need in Kent?

The minimum deposit for most first-time buyers is 5 percent of the property price. On a 250,000 pound home in Medway, that is 12,500 pounds. A handful of lenders will consider smaller deposits through specific schemes, but 5 percent is the realistic floor for the majority of buyers.

A bigger deposit almost always helps. Lenders price mortgages in loan to value bands, so moving from a 5 percent deposit to 10 percent can drop you into a lower rate band and cut your monthly payment noticeably. If you can reach 15 or 20 percent, the range of deals available to you widens again. The point is that you do not need to wait until you have 20 percent to start. You need to decide whether buying sooner with a smaller deposit or waiting for a larger one leaves you better off, and that maths is different for everyone.

First-time buyer schemes in Kent compared (2026)

Here is how the main routes stack up. All figures apply to England, which includes Kent.

Scheme	What it does	Who it suits	Key limit
Mortgage Guarantee Scheme	Backs lenders offering 91 to 95 percent mortgages, so you can buy with a 5 percent deposit	Buyers with a small deposit and a steady income	Home price up to 600,000 pounds
Lifetime ISA	Government adds a 25 percent bonus to your savings, up to 1,000 pounds a year	Savers aged 18 to 39 planning ahead	Home price up to 450,000 pounds
Shared Ownership	Buy a share of a home and pay rent on the rest, staircasing to full ownership later	Buyers priced out of a full purchase	Usually a 25 to 75 percent starting share
First Homes	Buy a selected new build at a discount of at least 30 percent	Local first-time buyers on new build developments	Household income under 80,000 pounds

Each of these is explained in detail below.

How does the Mortgage Guarantee Scheme work in 2026?

The Mortgage Guarantee Scheme lets you buy with a 5 percent deposit by giving lenders a government-backed guarantee against part of their potential losses. That reassurance is what keeps 95 percent mortgages available even when the wider market tightens.

The current scheme has been permanently available across the UK since July 2025 and supports purchases on homes worth up to 600,000 pounds. It covers mortgages between 91 and 95 percent loan to value, and the guarantee lasts up to seven years from completion. Major lenders including Nationwide, Halifax, Virgin Money and TSB take part, alongside others. You still have to pass the lender's normal affordability and credit checks, and the scheme does not cover second homes or buy to let. You can read the official detail on the gov.uk mortgage guarantee scheme page.

For a first-time buyer in Medway or Rochester with a modest deposit but a reliable income, this is often the simplest route to owning sooner rather than later.

What is the Lifetime ISA and is it worth it for first-time buyers?

A Lifetime ISA (LISA) is a savings or investment account designed to help you buy your first home or save for later life. You can pay in up to 4,000 pounds each tax year, and the government adds a 25 percent bonus on top, worth up to 1,000 pounds a year.

To use it for a first home, the property must cost 450,000 pounds or less, you must buy with a mortgage, and the account must have been open for at least 12 months. You can open a LISA between the ages of 18 and 39. If two first-time buyers each have a LISA, you can combine both bonuses towards the same purchase, provided the home still sits within the 450,000 pound limit. The full rules are set out on the gov.uk Lifetime ISA page.

One point to plan around: if you withdraw the money for anything other than a first home or retirement, you lose 25 percent of the amount withdrawn, which can leave you with less than you paid in. The government has also confirmed the Lifetime ISA will be replaced by a new First-Time Buyer ISA from April 2028, though existing accounts can continue. For now the LISA remains one of the most efficient ways to boost a deposit, especially if you are still a year or two from buying.

Can you buy through Shared Ownership in Kent?

Shared Ownership lets you buy a share of a home, usually between 25 and 75 percent, and pay rent on the remaining share owned by a housing association. Because you only need a mortgage and deposit on the portion you are buying, the upfront cost is far lower. A 5 percent deposit on a 40 percent share of a 250,000 pound home is just 5,000 pounds, rather than 12,500 pounds on the whole property.

Over time you can buy further shares, a process called staircasing, until you own the home outright. Shared Ownership homes appear across Kent, particularly on newer developments in and around Medway, and you can search current availability through the gov.uk Shared Ownership guidance. The trade-off is that you pay rent as well as a mortgage, and there are service charges to factor in, so it pays to compare the total monthly cost against a standard purchase before committing.

What is the First Homes scheme?

The First Homes scheme offers first-time buyers in England a discount of at least 30 percent on the price of selected new build homes. The discount is permanent: when you eventually sell, you must pass on the same percentage discount to the next buyer, which keeps these homes affordable for local people over the long term.

To qualify you must be a first-time buyer with a household income under 80,000 pounds (90,000 pounds in London), and local councils can add their own priority rules, for example favouring key workers or people with a local connection. Availability depends on developers building First Homes into their schemes, so supply in any given part of Kent varies. It is worth asking your broker and local agents what is coming to market.

Do first-time buyers pay stamp duty in Kent?

Most do not. First-time buyer stamp duty relief means you pay no Stamp Duty Land Tax on a home costing up to 300,000 pounds. On a home between 300,001 and 500,000 pounds, you pay 5 percent only on the slice above 300,000 pounds. Above 500,000 pounds the relief no longer applies and standard rates are charged on the whole price.

These thresholds have applied since 1 April 2025, when the nil-rate band for first-time buyers dropped from 425,000 pounds to 300,000 pounds. Because a large share of homes in Medway and the wider Medway towns sit below 300,000 pounds, many first-time buyers here pay nothing at all. You can check the current rates on the gov.uk Stamp Duty Land Tax page.

How much can a first-time buyer borrow in 2026?

As a general rule, lenders offer around 4 to 4.5 times your annual income, and some will stretch to 5 or 5.5 times for strong applicants with secure earnings. A couple with a combined income of 60,000 pounds might therefore borrow somewhere between 240,000 and 300,000 pounds, subject to passing affordability checks on their outgoings and any existing credit.

Rates matter too. The Bank of England base rate was held at 3.75 percent on 30 July 2026, with the next decision due on 17 September 2026, and inflation sitting at 2.6 percent. Against that backdrop, first-time buyer mortgage rates in Kent have generally ranged from around 3.75 to 5.60 percent depending on deposit size, credit profile and fixed-rate length. If you are self-employed, lenders assess your income differently, and our guide to self-employed mortgages in Kent explains exactly what they look for. For a closer look at what different deposits and terms cost, see our breakdown of first-time buyer mortgage rates in Kent.

Which first-time buyer scheme is right for me?

There is no single best scheme, only the best fit for your circumstances. As a rough guide, the Mortgage Guarantee Scheme suits buyers who have a 5 percent deposit and a home in mind now. A Lifetime ISA suits those still building a deposit who want the government to boost their savings along the way. Shared Ownership helps buyers who cannot yet afford a full purchase in their preferred area. First Homes suits local buyers looking at new build developments that offer the discount.

In practice, many first-time buyers use more than one at once, for example saving into a Lifetime ISA and then buying with a 5 percent deposit under the Mortgage Guarantee Scheme. Working out the most cost-effective combination, and matching it to a lender likely to approve you, is exactly where independent advice earns its keep.

How a Kent mortgage broker helps first-time buyers

A whole-of-market broker compares deals across the market rather than a single lender's range, which matters most when your deposit is small or your income is less straightforward. At Yomo Finance we help first-time buyers across Medway, Rochester and Kent understand which schemes they qualify for, estimate what they can borrow, and line up a lender before they start viewing. We offer Saturday appointments and clear, jargon-free advice.

If you are ready to take the next step, learn more about our first-time buyer mortgage advice or get in touch with Yomo Finance for a no-obligation chat about your first home.

Frequently asked questions

Can I buy my first home in Kent with a 5 percent deposit?

Yes. The Mortgage Guarantee Scheme supports 95 percent mortgages on homes up to 600,000 pounds, so a 5 percent deposit is enough for most first-time buyers, provided you pass the lender's affordability and credit checks.

Do first-time buyers pay stamp duty in Kent?

Usually not. First-time buyer relief means no stamp duty on homes up to 300,000 pounds, and only 5 percent on the portion between 300,001 and 500,000 pounds. Many Medway homes fall below the 300,000 pound threshold, so those buyers pay nothing.

Can I combine a Lifetime ISA with other schemes?

Yes. You can use a Lifetime ISA alongside the Mortgage Guarantee Scheme, Shared Ownership or First Homes, as long as the property meets each scheme's price limit, including the 450,000 pound cap for the Lifetime ISA.

How much can I borrow as a first-time buyer?

Most lenders offer around 4 to 4.5 times your income, with some going higher for strong applicants. Your final figure depends on your income, deposit, credit record and monthly commitments, which a broker can assess before you apply.

Is Shared Ownership a good idea?

It can be if a full purchase is out of reach, because it lowers the deposit and mortgage you need. Weigh the rent and service charges on the share you do not own against the cost of a standard purchase before deciding.