Help to Buy Alternatives 2026 — First-Time Buyer Schemes UK

Help to Buy has ended, but several schemes still help first-time buyers get on the property ladder. Here’s what’s available.

Available Schemes Overview

Current Options

Scheme	What It Offers	Who Qualifies
Mortgage Guarantee	95% mortgages	Everyone
First Homes	30-50% discount	FTBs, local connection
Shared Ownership	Buy a share	Income limits
Lifetime ISA	25% bonus	Under 40
Right to Buy	Discounted council home	Council tenants
Forces Help to Buy	Interest-free loan	Armed forces

Mortgage Guarantee Scheme

How It Works

Feature	Details
Government role	Guarantees lenders against losses
Your deposit	5% minimum
Mortgage	95% LTV available
Property value	Up to £600,000
Property type	New or existing

Who Can Use It

Requirement	Details
First-time buyer?	No (anyone can use)
Main residence	Must be
All lenders	No (participating lenders)

Mortgage Guarantee vs Standard 95% LTV

Aspect	Government Scheme	Standard 95%
Availability	More lenders participate	Fewer options
Rates	Similar	Similar
Criteria	Standard lending	Standard lending

First Homes Scheme

How It Works

Feature	Details
Discount	30-50% off market value
Discount type	Permanent (for future sales)
Who delivers	Developers as planning condition
Property type	New builds only
Price cap	£250k (£420k London) after discount

Who Qualifies

Requirement	Details
First-time buyer	Yes (or unable to buy without)
Income cap	£80k (£90k London)
Local connection	Priority to local workers
Key workers	Often prioritised
Military	Veterans priority

First Homes Example

Market Value	Discount	Purchase Price
£250,000	30%	£175,000
£300,000	30%	£210,000
£250,000	40%	£150,000
£300,000	50%	£150,000

Future Sales

When You Sell	What Happens
Find buyer	Must be eligible for First Homes
Price	Same % discount off market value
Discount stays	Permanent, not just your ownership

Shared Ownership

How It Works

Feature	Details
Buy	25-75% of property
Rent	On remaining share
Staircase	Buy more shares over time
Where	Usually housing associations

Who Qualifies

Requirement	2026
Household income cap	£80,000 (£90,000 London)
First-time buyer?	Usually, or unable to buy
Can’t afford outright	Demonstrated

Shared Ownership Example

Property Value	Your Share (25%)	Rent on 75%
£200,000	£50,000	~£280/month
£300,000	£75,000	~£420/month
£400,000	£100,000	~£560/month

Rent typically 2.75% of housing association’s share.

Staircasing

Current Share	Buy More	New Share
25%	+10%	35%
35%	+15%	50%
50%	+50%	100% (full ownership)

Buying more = higher mortgage but lower rent.

Shared Ownership Pros and Cons

Pros	Cons
Lower deposit needed	Pay rent AND mortgage
Smaller mortgage	Restrictions on changes
Path to ownership	Selling can be complicated
Maintenance support	Still pay service charges

Lifetime ISA

How It Works

Feature	Details
Annual contribution	Up to £4,000
Government bonus	25% (up to £1,000/year)
Use for	First home or retirement
Account limit	£128,000 (£33,000 in bonuses)

Property Rules

Requirement	Details
First-time buyer	Yes
Property value	Under £450,000
Age at opening	18-39
Minimum holding	12 months
With mortgage	Yes (can’t be cash purchase)

LISA for Deposit Example

Years Saving	You Contribute	Bonus	Total (No Growth)
1	£4,000	£1,000	£5,000
2	£8,000	£2,000	£10,000
3	£12,000	£3,000	£15,000
5	£20,000	£5,000	£25,000

Plus investment growth if in Stocks & Shares LISA.

LISA Withdrawal Penalty

Purpose	Penalty
First home purchase	None
Retirement (60+)	None
Other withdrawal	25% (loses all bonus + some contributions)

Right to Buy

For Council Tenants

Feature	Details
Discount	Up to £96,000 (£127,900 London)
Qualifying period	3 years as tenant
Discount rate	35-70% depending on property type and tenure

Discount Calculation

Tenure	House Discount	Flat Discount
3 years	35%	50%
Each extra year	+1%	+2%
Maximum	70%	70%

Maximum discount or cash cap, whichever is lower.

Forces Help to Buy

For Armed Forces

Feature	Details
Loan	Up to 50% of salary (max £25,000)
Interest	Interest-free
Repayment	Over 10 years via salary
Use	Deposit, fees, or stamp duty

Comparing Schemes

Which to Use

Your Situation	Best Scheme
Have time to save	LISA (25% bonus)
Need to buy soon, small deposit	Mortgage Guarantee
Low income	Shared Ownership
Key worker/local	First Homes
Council tenant	Right to Buy
Armed forces	Forces Help to Buy

Can You Combine Them?

Combination	Possible?
LISA + Mortgage Guarantee	Yes
LISA + Shared Ownership	Yes
LISA + First Homes	Yes
First Homes + Shared Ownership	No

Tips for First-Time Buyers

Getting Mortgage Ready

Action	Why
Check credit report	Fix errors, improve score
Reduce debt	Improves affordability
Stable employment	Required for applications
Save deposit	Larger = better rates
Avoid credit applications	Hard searches hurt

Deposit Sources

Source	Considerations
Savings	Build over time
LISA bonus	25% boost
Gifted deposit	Must be a gift, not loan
Inheritance	Document source
Equity/savings from sale	Typically existing owners

First-Time Buyer Benefits

Benefit	Details
Stamp duty	£0 on first £425,000
LISA eligibility	25% bonus
Access to schemes	First Homes, etc.
Some mortgage products	FTB-specific rates

Key Takeaways

1. Help to Buy ended — but alternatives exist
2. LISA is powerful — 25% free money
3. Shared Ownership — path to ownership if low income
4. First Homes — big discount if available
5. 95% mortgages — available but more expensive
6. Combine schemes — LISA + most others works

For related content, see our first-time buyer guide, mortgage calculator, and stamp duty calculator.