Government schemes can help first-time buyers step onto the property ladder. But what if you’ve got bad credit? Here’s how Shared Ownership, Right to Buy, and First Homes stack up.
Shared Ownership
Shared Ownership lets you buy 25–75% of a property and pay rent on the rest.
- Specialist lenders may accept defaults, CCJs, or historic IVAs.
- Many lenders allow 0% deposit (100% of your share), even with bad credit.
- Some housing associations still request 5% deposit, but not always.
- More serious or recent issues may require 15–25%.
Right to Buy
Right to Buy allows council and housing association tenants to buy their home at a discount.
- The discount is often treated as your deposit.
- Defaults/CCJs are often accepted if minor or over 2 years old.
- For recent/serious issues, a cash deposit may still be required.
Related: Right to Buy Bad Credit Mortgages
First Homes Scheme
The First Homes scheme offers 30–50% discounts on new-builds for local first-time buyers.
- Very limited lender participation.
- Most lenders prefer clean credit files.
- Unlikely if you’ve had recent serious issues (CCJs, IVA, bankruptcy).
Scheme Comparison
| Scheme | Bad Credit Accepted? | Deposit Needed |
|---|---|---|
| Shared Ownership | Yes, with specialist lenders | 0–25% of share (often 0%) |
| Right to Buy | Yes, with specialist lenders | Discount + 5–20% |
| First Homes | Rarely (only minor issues) | 5–10% |
Case Studies
Case A — Shared Ownership with Defaults
Megan had two small defaults from 2020. She secured Shared Ownership with 0% deposit.
Case B — Right to Buy with CCJ
Paul had a CCJ in 2019. His discount covered the deposit and a specialist lender approved his mortgage.
Case C — First Homes, Declined
Sarah had a settled IVA in 2021. In 2023 she was declined under First Homes, as criteria are stricter.
Practical Steps
- Check scheme eligibility — location, income, property rules apply.
- Match scheme to lender — not all support every scheme.
- Specialist lenders open more doors with Shared Ownership and Right to Buy.
- Be cautious with First Homes — lenders are strict.
- Use a broker to align your credit history with the right scheme.
