Since 2007, Scotland’s LIFT scheme has quietly helped thousands of first-time buyers climb onto the property ladder. Through its Open Market Shared Equity (OMSE) and New Supply Shared Equity (NSSE) arms, the initiative supported by the Scottish government, offered a helping hand to prospective homebuyers. The often-overlooked scheme helped those who might otherwise have been permanently priced out of home ownership. That era, it seems, is now ending for many.

In April 2025, the Scottish government confirmed that access to both OMSE and NSSE would be restricted to a narrower band of priority groups: social renters, over-60s with a housing need, disabled individuals, armed forces personnel and veterans, and bereaved military partners. First-time buyers who derived great benefit from these schemes are no longer eligible unless they also fall into one of those categories.

The shift has gone largely unremarked upon in the national conversation. But for mortgage brokers and housing professionals, this represents a quiet, structural change that leaves a gap in the market as the door closes on the scheme.

Since its inception in 2007, the LIFT scheme has helped more than 12,000 buyers, most of them first-time buyers, secure a home through a shared equity arrangement. The scheme’s withdrawal from general availability does not reflect poor performance. In fact, its structure was widely praised in the context of the FCA’s Consumer Duty rules, for providing great borrower outcomes. The Scottish government’s decision reflects a re-prioritisation of public funds towards freeing up social housing and supporting those in greatest housing need. Through a policy lens, the move makes sense. But for brokers, it raises an uncomfortable question: where do excluded first-time buyers go now?

The answer, it turns out, is complicated and increasingly dependent on broker expertise and lender flexibility. In the absence of LIFT, buyers with limited deposits or affordability constraints now lean more heavily on the patchwork of options offered by the mainstream mortgage market: 95 per cent LTV loans, Joint Borrower Sole Proprietor (JBSP) structures, guarantor mortgages, or deposit boosts from family. It has been said that if the Bank of Mum and Dad were a defined mortgage lender, they would be among the top ten providers in the UK in terms of gross lending.

Some lenders, particularly Building Societies, have stepped up with more thoughtful affordability models, including credit boosting (Leeds BS), and using proof of rental payments to increase available LTV to 100% (Skipton). The landscape however, is uneven, and for buyers with no family wealth or professional advice, the route to home ownership can feel more challenging than ever.

At the same time, the regulatory environment is shifting. In May, the Financial Conduct Authority launched a consultation proposing changes to the way affordability is assessed particularly for short term fixed rates that are subject to stress testing. The current approach varies depending on the lender and their own application of the rules. The FCAs aim is to remove unnecessary stress testing where repayment certainty is higher, potentially unlocking borrowing capacity for more buyers.

If implemented, these reforms could have a material effect. A first-time buyer may no longer face an affordability check at six or seven per cent when the actual pay rate is closer to four. That, in turn, could make a critical difference in urban areas where incomes and property prices are out of step. This could provide a glimmer of hope to those who would have benefitted from the LIFT scheme, as there are answers out there.

Looking ahead in this post LIFT moment, the role of the mortgage broker becomes more vital than ever. No longer able to direct young buyers to a straightforward government backed scheme, brokers are instead tasked with navigating complexities in balancing affordability models, family structures, and evolving product niches to deliver practical outcomes.

Like many regional lenders Scottish Building Society has supported borrowers under the LIFT scheme for years, and we understand what made it work. As it fades from mainstream eligibility, we remain committed to delivering accessible lending through tailored underwriting and broker collaboration.

Stephen Brown is head of intermediaries at Scottish Building Society