Help to Buy in 2026: What Schemes Are Still Available?

"Help to Buy" used to mean one specific scheme. It now means something more like "the loose collection of government schemes that help first-time buyers get on the property ladder". The original Help to Buy equity loan closed to new applicants in 2023. What's replaced it is a patchwork of smaller, more targeted programmes — some great, some niche, none as headline-grabbing as the original.

Here's what's actually still available in 2026 and how to figure out which scheme (if any) could work for you.

What happened to the original Help to Buy equity loan?

The original Help to Buy equity loan scheme — where the government lent up to 20% (or 40% in London) of the property price interest-free for the first five years — closed to new applications on 31 March 2023.

If you already had a Help to Buy equity loan from before then, it continues under its existing terms. You can still:

• Make partial repayments ("staircase" your equity)
• Pay it off in full when you sell
• Remortgage with permission from Homes England

For new buyers, the original scheme is gone. The schemes that remain are different in structure and usually narrower in scope.

What schemes still exist in 2026?

The main schemes available to UK first-time buyers in 2026:

• Shared Ownership — buy a share of a property, pay rent on the rest
• Mortgage Guarantee Scheme — government supports lenders offering 95% mortgages
• First Homes — discounted new-builds for local first-time buyers in some areas
• Lifetime ISA — government bonus on your house deposit savings
• Right to Buy (council tenants) and Right to Acquire (housing association tenants) — buying your rented home at a discount

Plus the Scottish, Welsh and Northern Irish equivalents, which have their own variations. The rest of this guide focuses on the main schemes available across England.

Shared Ownership explained

Shared Ownership lets you buy a percentage of a property (typically 25%-75%) and pay rent to a housing association on the rest. Over time, you can buy more of the property — a process called "staircasing".

The main features:

• You need a mortgage and deposit only for the share you're buying, not the full property
• You pay rent on the remaining share to the housing association
• You can usually staircase up to 100% ownership over time
• You're responsible for maintenance and repairs (as a homeowner would be) even on the rented share
• The property is leasehold, with a service charge

It can be a meaningful way onto the property ladder for buyers who otherwise couldn't afford the area they want to live in. But the combination of mortgage, rent, service charge and repairs means it's not always cheaper than renting — run the numbers carefully.

How Shared Ownership works in practice

A worked example. Property value: £250,000. You buy 25% (£62,500). Housing association keeps 75% (£187,500).

Your monthly costs:

• Mortgage on £62,500 (with a 10% deposit of £6,250): around £270/month at 5%
• Rent on the 75% share (typically 2.75% of share value per year): £429/month
• Service charge (variable): £100-£300/month
• Total monthly: roughly £800-£1,000

Plus repairs and maintenance — typically your responsibility on the whole property, even though you only own part.

Compare that to renting a similar property privately at, say, £1,200/month, and the savings can be meaningful. Compare to buying outright with a 95% mortgage on £250,000 — about £1,400/month plus service charge — and the picture is more mixed.

The pros and cons of Shared Ownership

Pros:

• Lower deposit needed
• Lower monthly mortgage payments
• Lets you buy in expensive areas you'd otherwise be priced out of
• You can staircase up to full ownership over time
• Some sense of security compared with private renting

Cons:

• The property is leasehold — you don't own outright unless you staircase to 100%
• Service charges can rise significantly over time
• You're responsible for repairs even on the rented share
• Selling involves the housing association — they get first refusal
• Resale can be slower than a normal property
• Rent reviews can push monthly costs up

Read the lease carefully. Some are more buyer-friendly than others, and the small print really matters here.

The Mortgage Guarantee Scheme

The Mortgage Guarantee Scheme isn't a product itself — it's a government scheme that supports lenders offering 95% mortgages. The government provides a guarantee to the lender on a portion of the loan, which makes them more comfortable offering low-deposit mortgages.

From the buyer's perspective, it just means more 95% (5% deposit) mortgage products are available. You apply for a mortgage in the normal way — the lender handles the scheme aspect behind the scenes.

Key points:

• Available to all buyers (not just first-time)
• Property must be a primary residence (no buy-to-let)
• Property must be worth £600,000 or less
• Must be a repayment mortgage (no interest-only)

The rates on Mortgage Guarantee Scheme products are usually only marginally cheaper than equivalent non-scheme 95% mortgages — the main benefit is that more lenders participate, giving you more options.

First Homes scheme

First Homes is a newer scheme offering discounted new-build homes to local first-time buyers in specific areas. The discount is typically 30%, sometimes up to 50%.

The qualifying criteria:

• Must be a first-time buyer
• Must be aged 18+
• Household income must be under £80,000 (or £90,000 in London)
• The discount applies to the original price and to any future sale price — so subsequent buyers also get the discount
• Available only in some developments and councils — not nationally available

If a First Homes property is available in an area you want to live, it can be excellent value. The catch is availability — only some developments participate, and they can sell fast in popular areas.

Lifetime ISA for first-time buyers

The Lifetime ISA (LISA) is a tax-efficient savings or investment account designed to help with either buying a first home or saving for retirement.

How it works for first-time buyers:

• You save up to £4,000 per year into the LISA
• The government adds a 25% bonus, up to £1,000 per year
• You can use the LISA balance toward a first home worth up to £450,000
• You must have had the LISA open for at least 12 months before using it for a home purchase
• You must be aged 18-39 to open one

If you save the maximum for five years, you'd contribute £20,000 and receive £5,000 in bonuses — £25,000 total toward a deposit, tax-free growth.

The catch: withdrawing for any reason other than a first home purchase or retirement (60+) incurs a 25% withdrawal penalty, which effectively means you lose your government bonus plus a small additional amount. So only put money into a LISA you're confident you'll use for one of those two purposes. Our ISA vs savings calculator can help compare options.

Which scheme is right for you?

Rough matching:

• You can save consistently but need to grow your deposit: Lifetime ISA, regardless of which mortgage you ultimately use.
• You've got a 5% deposit and want a standard mortgage: Mortgage Guarantee Scheme products.
• You can't afford full ownership in your preferred area: Shared Ownership.
• You live in an area with First Homes developments: Worth checking availability.
• You're a council or housing association tenant: Right to Buy or Right to Acquire.

Many buyers use more than one — a Lifetime ISA built up over years, then used as the deposit for a Mortgage Guarantee Scheme mortgage, for example.

How to apply for government schemes

Each scheme has its own application route:

• Lifetime ISA: Open one with a bank, building society or investment platform that offers them. Easy and quick.
• Shared Ownership: Find Shared Ownership homes via Share to Buy or directly with housing associations. Apply through the housing association.
• Mortgage Guarantee Scheme: No application as such — just apply for a mortgage with a participating lender. The lender handles the scheme aspect.
• First Homes: Find participating developments via local councils or developers. Apply through the local authority and the developer.
• Right to Buy / Right to Acquire: Apply through your council or housing association. They'll have a specific process.

For complex situations, a mortgage broker who specialises in first-time buyer schemes can save you a lot of legwork — they know which lenders work with which schemes and what the eligibility requirements are. Combined with our first-time buyer guide, you'll have a clear picture of the route.

Frequently asked questions