Help to Buy Alternatives 2026 — First-Time Buyer Schemes UK
Guide to first-time buyer schemes in the UK after Help to Buy ended. Mortgage guarantee, First Homes, Shared Ownership, and other routes to homeownership.
Mortgage information is general guidance only. Mortgages are regulated by the FCA. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. Consult an FCA-regulated mortgage adviser before making decisions.
Contents
Help to Buy has ended, but several schemes still help first-time buyers get on the property ladder. Here’s what’s available.
For the wider cluster covering deposits, affordability, live first-time-buyer schemes and mortgage applications, use the main First-Time Buyers hub.
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
Help to Buy ended — but alternatives exist
LISA is powerful — 25% free money
Shared Ownership — path to ownership if low income
Your home may be repossessed if you do not keep up repayments on your mortgage. PocketWise provides information and guidance — we do not offer financial advice. Seek independent mortgage advice before making decisions about borrowing.