Has Help to Buy ended?

Yes, the Help to Buy: Equity Loan scheme closed to new applications in October 2022, with all completions finished by March 2023. The scheme helped over 380,000 households buy homes with smaller deposits, but several alternative schemes are now available.

What replaced Help to Buy?

No single scheme replaced Help to Buy, but alternatives include First Homes (30-50% discount), Shared Ownership (buy a share), Lifetime ISA (25% government bonus on savings), and various 95% LTV mortgages. The right option depends on your circumstances.

What is the First Homes scheme?

First Homes offers first-time buyers a 30-50% discount on new build homes. The discounted price must be £250,000 or less (£420,000 in London). You need a mortgage for the discounted price, and the discount passes to future buyers.

Can I still get a 5% deposit mortgage?

Yes, 95% LTV mortgages are available without government schemes. Most major lenders offer them, though rates are higher than with larger deposits. The government's Mortgage Guarantee Scheme ended in December 2023, but lenders continue offering these products.

Is Shared Ownership a good alternative to Help to Buy?

It depends. Shared Ownership lets you buy with a smaller mortgage (often 10-25% of property value) plus rent on the unowned share. It's accessible but has limitations — you pay rent and mortgage, and selling can be complex. It suits those who can't afford to buy outright.

What happens to my Help to Buy equity loan?

If you used Help to Buy, you still have an equity loan to repay. Interest is free for 5 years, then 1.75% rising annually. You can repay it when you sell, remortgage to pay it off, or make partial repayments. The amount owed is a percentage of your home's current value, not the original amount.

Help to Buy Alternatives UK 2025: Schemes to Help You Buy a Home

Help to Buy’s equity loan scheme closed in 2022, but several alternatives can still help you get on the property ladder. This guide compares all the current options available in 2025 to help you find the right path to homeownership.

Help to Buy Alternatives at a Glance

Scheme	How It Helps	Best For
First Homes	30-50% discount on new builds	First-time buyers, key workers
Shared Ownership	Buy a share, rent the rest	Lower incomes, smaller deposits
Lifetime ISA	25% bonus on savings	Savers planning ahead
95% LTV Mortgages	Buy with 5% deposit	Those with small deposits
Help to Build	Equity loan for self-build	Custom build projects
Right to Buy	Discount for council tenants	Social housing tenants
Local Authority Schemes	Varies by area	Check your council

First Homes Scheme

How First Homes Works

Feature	Detail
Discount	30-50% off market value
Who qualifies	First-time buyers
Price cap (after discount)	£250,000 (£420,000 London)
Income cap	£80,000 (£90,000 London)
Mortgage	Required for discounted price
Deposit	5-10% of discounted price
Properties	New builds only

First Homes Examples

Market Value	Discount	You Pay	10% Deposit	Mortgage Needed
£200,000	30%	£140,000	£14,000	£126,000
£250,000	30%	£175,000	£17,500	£157,500
£300,000	30%	£210,000	£21,000	£189,000
£350,000	30%	£245,000	£24,500	£220,500
£300,000	40%	£180,000	£18,000	£162,000
£350,000	50%	£175,000	£17,500	£157,500

First Homes Eligibility

Requirement	Detail
First-time buyer	Never owned before
Household income	Under £80k (£90k London)
Mortgage requirement	Must get mortgage for at least 50% of discounted price
Main residence	Must live there yourself
Local connection	Some schemes prioritize local buyers
Key worker priority	Some schemes prioritize essential workers

First Homes Considerations

Pros	Cons
Large discount (30-50%)	Limited availability
Own 100% of property	Must sell to eligible buyer at same discount
Deposit on lower price	New builds only
No rent to pay	Cap on future sale price
Build equity fully	Location dependent

How to Apply for First Homes

Search “First Homes” on developer websites
Register with local housing authority
Check eligibility criteria for specific developments
Submit application with income evidence
Get mortgage agreement in principle
Complete purchase through normal process

Shared Ownership

How Shared Ownership Works

Feature	Detail
Purchase share	25-75% (some allow 10%)
Rent	On unowned share (usually 2.75%/year)
Staircasing	Buy more shares over time
Income cap	£80,000 (£90,000 London)
Properties	New builds and resales
Deposit	Typically 5-10% of your share

Shared Ownership Example

£250,000 property, buying 25% share:

Component	Amount
Property value	£250,000
Your share (25%)	£62,500
Deposit (10% of share)	£6,250
Mortgage needed	£56,250
Monthly mortgage (~5%)	~£330
Monthly rent (2.75% of £187,500)	~£430
Total monthly	~£760

Shared Ownership vs Full Purchase

Factor	Shared Ownership (25%)	Full Purchase
Deposit needed	£6,250	£25,000 (10%)
Mortgage needed	£56,250	£225,000
Monthly mortgage	~£330	~£1,320
Monthly rent	~£430	£0
Total monthly	~£760	~£1,320
Equity ownership	25%	100%

Shared Ownership Costs to Consider

Cost	Typical Amount	Notes
Deposit	5-10% of your share	Much lower than full purchase
Mortgage	On your share only	Lower monthly payments
Rent	2.75% of housing association’s share	Must budget for both
Service charge	£50-£200/month	For flats especially
Ground rent	£0-£100/year	Leasehold properties
Buildings insurance	Often included in service charge	Check what’s covered
Staircasing fees	£500-£1,500	Each time you buy more

Staircasing: Buying More Shares

Current Share	Buy Additional	New Share	New Rent Base
25%	10%	35%	65% of value
35%	15%	50%	50% of value
50%	25%	75%	25% of value
75%	25%	100%	No rent

Note: Each purchase is at current market value, not original price.

Shared Ownership Considerations

Pros	Cons
Lower deposit needed	Pay rent AND mortgage
Smaller mortgage	Selling can be complex
Build equity	Repairs remain your responsibility
Staircase to full ownership	Service charges can be high
Wider property access	May be harder to remortgage
Available on new and existing	Some leasehold restrictions

Lifetime ISA

How Lifetime ISA Works

Feature	Detail
Annual savings limit	£4,000
Government bonus	25% (up to £1,000/year)
Property price limit	£450,000
Age to open	18-39
Age to use	Until 60
Withdrawal penalty	25% if not for first home or retirement

Lifetime ISA Savings Growth

Years Saving	You Save	Bonus (25%)	Interest (~4%)	Total
1	£4,000	£1,000	£100	£5,100
2	£8,000	£2,000	£400	£10,400
3	£12,000	£3,000	£900	£15,900
4	£16,000	£4,000	£1,600	£21,600
5	£20,000	£5,000	£2,500	£27,500

LISA vs Regular Savings (5 years)

Factor	Lifetime ISA	Regular ISA
Your contributions	£20,000	£20,000
Government bonus	£5,000	£0
Interest (estimated)	~£2,500	~£2,500
Total	£27,500	£22,500

Difference: £5,000 extra with LISA

Lifetime ISA Rules

Rule	Detail
First-time buyer	Never owned property before
Property limit	£450,000 maximum purchase price
Hold period	Must be open 12 months before use
Penalty withdrawal	25% withdrawn (lose bonus + 6.25%)
Completion rule	Must complete within 90 days of payment

LISA Providers

Provider Type	Examples	Features
Cash LISA	Various banks/building societies	Easy access, lower risk
Stocks & Shares LISA	AJ Bell, Hargreaves Lansdown	Higher potential returns, more risk

For short-term (1-3 years): Cash LISA is safer For longer-term (5+ years): Stocks & Shares may offer better returns

95% LTV Mortgages

How 5% Deposit Mortgages Work

Feature	Detail
Deposit required	5% of property price
LTV	95%
Interest rates	Higher than larger deposit mortgages
Availability	Most major lenders
Property types	Most standard properties

95% LTV Example Costs

Property Price	5% Deposit	Mortgage	Monthly (~5.5%)
£200,000	£10,000	£190,000	£1,168
£250,000	£12,500	£237,500	£1,460
£300,000	£15,000	£285,000	£1,752
£350,000	£17,500	£332,500	£2,044

25-year term, repayment mortgage. Rates illustrative.

95% LTV vs Larger Deposits

Deposit	LTV	Typical Rate	Monthly (£250k property)
5% (£12,500)	95%	5.5%	£1,460
10% (£25,000)	90%	4.9%	£1,387
15% (£37,500)	85%	4.5%	£1,331
20% (£50,000)	80%	4.2%	£1,295

Lower deposit = higher rate = higher monthly payments

Help to Build: Equity Loan

For self-build and custom-build homes.

How Help to Build Works

Feature	Detail
Equity loan	5-20% (40% in London)
Your deposit	5% minimum
Property value limit	£600,000
Interest	Free for 5 years, then 1.75% rising
Repayment	When you sell, remortgage, or voluntarily
Eligibility	First-time buyers and existing owners

Help to Build Example

Building a £400,000 home:

Component	Amount	Percentage
Your deposit	£20,000	5%
Help to Build loan	£80,000	20%
Mortgage	£300,000	75%
Total	£400,000	100%

Help to Build Process

Find a plot or custom build opportunity
Get Decision in Principle from lender
Apply for Help to Build equity loan
Build your home (staged payments)
Complete and move in
Repay equity loan eventually

Right to Buy

Who Can Use Right to Buy

Requirement	Detail
Council or housing association tenant	3+ years tenancy
Main home	Must be your only or main residence
Secure tenancy	Certain tenancy types only
Property type	Most houses and flats

Right to Buy Discounts (England)

Property Type	Maximum Discount
House	£102,400
Flat	£136,400
London (house)	£136,400
London (flat)	£182,200

Right to Buy Discount Calculation

Years as Tenant	House Discount	Flat Discount
3 years	35%	50%
4 years	36%	52%
5 years	37%	54%
Each extra year	+1%	+2%
Maximum	70%	70%

Subject to maximum cash discounts above.

Other Help Buying Schemes

Deposit Unlock

Some developers offer schemes where deposit is covered or reduced.

Feature	Detail
Deposit	5% (developer supported)
Property	New builds from participating developers
Mortgage	Through participating lenders
Cost	May be built into property price

Family Springboard Mortgages

Family member’s savings help secure better rate.

Feature	Detail
Family contribution	Typically 10% in savings account
Your deposit	0-5% (varies by lender)
Savings locked	Usually 5 years
Interest	Family earns interest on their savings
Risk	Family savings at risk if you default

Guarantor Mortgages

Family member guarantees your mortgage.

Feature	Detail
Guarantor role	Covers payments if you can’t
Deposit	Can be lower than standard
Guarantor requirement	Usually homeowner with good income
Risk	Guarantor is liable for mortgage
Duration	Until equity reaches threshold

Comparing All Options

Scheme	Deposit Needed	Income Limit	Property Cap	Pros	Cons
First Homes	5-10% of discounted price	£80k/£90k	£250k/£420k	Large discount	Limited availability
Shared Ownership	5-10% of share	£80k/£90k	None	Very low deposit	Pay rent too
Lifetime ISA	5%+ (with bonus)	None	£450,000	25% bonus	12-month wait
95% mortgage	5%	None	Varies	Widely available	Higher rates
Help to Build	5%	None	£600,000	Self-build flexibility	Complex process
Right to Buy	None	Must be tenant	N/A	Huge discounts	Tenant only

Which Option Is Right for You?

Choose First Homes If:

You’re a first-time buyer
Household income under £80k/£90k
Want to own 100% of property
Happy with new build
Can find First Homes property in your area

Choose Shared Ownership If:

Very limited deposit
Income under £80k/£90k
Want to get on ladder now
Can afford rent + mortgage
Happy to buy more shares later

Choose Lifetime ISA If:

Planning to buy in 1+ years
Under 40 years old
Property target under £450,000
Can save regularly
Want free government money

Choose 95% Mortgage If:

Have 5% deposit ready
Want to buy now
Prefer full ownership
Can afford higher rates
Don’t want scheme restrictions

Summary

Help to Buy has ended, but homeownership is still achievable through:

First Homes — 30-50% discount for eligible first-time buyers
Shared Ownership — Buy part of a home with a smaller deposit
Lifetime ISA — Get 25% boost on savings for your deposit
95% LTV mortgages — Available from many lenders without schemes
Help to Build — Equity loan for self-build projects
Right to Buy — Discounts for council/housing association tenants

Research all options and see which fits your deposit savings, income level, and homeownership goals. Many people combine approaches — for example, using a Lifetime ISA bonus while saving for a Shared Ownership deposit.

First-Time Buyers UK 2026 — Deposits, Mortgages, Schemes and Buying Costs

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