What replaced Help to Buy? The 2026 guide to UK first-time buyer schemes

The status of Help to Buy

The Help to Buy equity loan scheme in England closed to new applicants on 31 October 2022 and completed on 31 March 2023 (HMRC/MHCLG, Help to Buy equity loan). Existing borrowers continue to repay their equity loans on the original terms; the page on GOV.UK remains live but is informational for those holders rather than a route in for new applicants.

There is no like-for-like replacement. The original scheme provided a single product (a government equity loan of up to 20% of a new-build property's value, 40% in London) that worked alongside a standard mortgage. Five separate schemes now share that ground, each with different eligibility criteria, property price limits, geographic restrictions, and product structures. A first-time buyer in 2026 needs to evaluate which scheme (or combination) fits their circumstances rather than reaching for a single answer.

The five current schemes

1. Mortgage Guarantee Scheme (England, relaunched July 2025)

The Mortgage Guarantee Scheme provides a government guarantee to participating lenders for the portion of a mortgage above 80% loan-to-value, enabling 95% LTV mortgages on properties up to £600,000 (HMRC/HMT, 2025 Mortgage Guarantee Scheme). The original scheme ran from April 2021 to June 2025; the relaunched permanent scheme began on 3 July 2025.

• Property cap: £600,000 (England)
• Deposit required: 5% of property value (the lender provides the remaining 95% mortgage)
• Eligible buyers: First-time buyers and home movers (not buy-to-let, offset, or guarantor mortgages)
• Product type: Standard repayment mortgage from participating lenders (the guarantee is between government and lender; the buyer does not transact with HMT directly)

2. First Homes Scheme (England, ongoing)

The First Homes Scheme offers a discount of at least 30% on new-build properties for first-time buyers (HMRC/MHCLG, First Homes scheme). The discount is locked into the property's title deeds and applies to every subsequent sale, so the property remains in the affordable-home-ownership stock.

• Property cap after discount: £250,000 (£420,000 in Greater London)
• Income cap: £80,000 (£90,000 in Greater London)
• Eligible buyers: First-time buyers only; local authorities can apply a 3-month priority window for local residents and key workers
• Supply: Constrained. First Homes are a subset of new-build affordable housing completions; specific properties available vary by local authority

3. Shared Ownership (England, Wales, and devolved variants)

Shared Ownership lets the buyer purchase a share (typically 10% to 75%) of a property and pay rent to a housing association on the remaining share (HMRC/MHCLG, Shared Ownership scheme). See the Shared Ownership true monthly cost article for the full cost-structure breakdown.

• Initial share: Typically 10% to 75% of property value
• Deposit: Usually 5% to 10% of the owned share (not the full property value)
• Ongoing costs: Mortgage on owned share + rent on unsold share (typically 2.75% to 3.00% annual) + service charge
• Staircasing: Buyer can buy additional shares over time, up to 100% in most schemes

4. Lifetime ISA as deposit (UK-wide, age 18-39 to open)

The Lifetime ISA gives a 25% government bonus on annual contributions up to £4,000 (so up to £1,000 of free money per year) for qualifying first-home purchases below £450,000 (HMRC, Lifetime ISA). The LISA is not a mortgage product but a deposit-building vehicle that can be combined with any of the other schemes above.

• Annual contribution cap: £4,000 (counts toward the £20,000 overall ISA allowance)
• Bonus: 25% added by HMRC, paid into the account
• Qualifying property cap: £450,000 (unchanged since 2017)
• Penalty: 25% of the full fund value for non-qualifying withdrawals (see LISA penalty article for the cost of getting this wrong)
• Replacement consultation: HM Treasury has confirmed consultation on a successor first-time buyer savings product to launch from April 2028

5. Help to Buy Wales (Wales only, extended to September 2026)

Help to Buy Wales is the Welsh devolved equivalent of the original English equity loan scheme and remains active until 31 March 2026 in most variants, with limited extensions to September 2026 (Welsh Government, Help to Buy Wales).

• Product: Government equity loan of up to 20% of property value
• Property cap: £300,000 (Wales)
• Buyer deposit required: 5%
• Mortgage: 75% from a participating lender, plus 20% equity loan, plus 5% deposit

Northern Ireland and Scotland have separate devolved housing schemes. Scotland's Open Market Shared Equity scheme is currently closed pending a 2026/27 reopening. Northern Ireland operates a co-ownership scheme via the Northern Ireland Housing Executive.

How to choose between the schemes

Each scheme is optimised for a different buyer profile.

Buyer with a 5% deposit, looking at a property up to £600,000 (England):

• Mortgage Guarantee Scheme is the most direct route. Standard 95% LTV mortgage; no rent component; no shared equity. The buyer owns 100% from day one.

Buyer with low-to-moderate income, looking for a new-build:

• First Homes Scheme delivers a 30%+ discount but supply is geography-constrained. Worth checking with the local authority's housing team for current availability before designing around it.

Buyer with a small deposit, wanting some equity now and willing to staircase later:

• Shared Ownership lets the buyer get on the ladder with as little as £7,000 deposit (5% on a 40% share of a £350k property) but introduces the triple-cost structure of mortgage + rent + service charge.

Buyer aged 18-39, saving for a deposit on a sub-£450,000 property:

• LISA's 25% bonus is the highest government top-up available, up to £1,000 per tax year. The £450,000 property cap and the 25% penalty for non-qualifying withdrawals are the structural constraints.

Buyer in Wales:

• Help to Buy Wales is the only remaining UK equity loan scheme. Available until at least March 2026 in most variants.

Calculate Your Mortgage Payment → (model the monthly cost on the share or full property value to compare across schemes; the Stamp Duty calculator at /stamp-duty-calculator handles the separate SDLT question, including first-time buyer relief.)

What about a new Help-to-Buy-style scheme?

Public statements from the Labour government in 2025 indicated that a new Help to Buy-style equity loan scheme is under consideration but has not been committed to. As of mid-2026 there is no official timeline or scheme design published; first-time buyers planning a 2026 or 2027 purchase should design around the five live schemes above rather than wait for an announcement.

The GOV.UK Affordable Home Ownership Schemes hub is the canonical place to check what is currently available. The MoneyHelper government schemes guide carries independent MaPS guidance.

Frequently asked questions

When did Help to Buy end?

The Help to Buy equity loan in England closed to new applicants on 31 October 2022 and completed on 31 March 2023 (HMRC/MHCLG, Help to Buy equity loan). Existing borrowers continue under the original terms.

Is Help to Buy coming back?

No commitment has been made. The Labour government has indicated a new Help to Buy-style scheme is under consideration but no design or timeline has been published as of mid-2026. First-time buyers should design around the live successor schemes.

What is the 2025 Mortgage Guarantee Scheme?

A government guarantee to participating lenders enabling 95% LTV mortgages on properties up to £600,000 in England. Relaunched permanently on 3 July 2025 (HMRC/HMT, 2025 Mortgage Guarantee Scheme). The buyer needs a 5% deposit; the lender provides the remaining 95% mortgage backed by the government guarantee.

How do First Homes and Shared Ownership differ?

First Homes is a discounted-purchase model: the buyer owns 100% of the property but pays at least 30% below market price, with the discount locked into the title. Shared Ownership is a partial-ownership model: the buyer owns a share (typically 40% to 75%) and pays rent to the housing association on the remaining share. Different products, different ongoing-cost profiles, different audiences.

Can I combine a LISA with other schemes?

Yes. The LISA is a deposit-building vehicle; the bonus money can be used as deposit for a Mortgage Guarantee Scheme mortgage, a First Homes purchase, or a Shared Ownership purchase, as long as the qualifying first-home conditions are met (sub-£450,000 property, paid to conveyancer at completion, genuine first-time buyer).

Further reading

• HMRC/MHCLG Help to Buy equity loan (closed): for existing borrowers and historical reference
• GOV.UK Affordable Home Ownership Schemes hub: canonical list of current live schemes
• HMRC/MHCLG First Homes Scheme: eligibility + property caps
• HMRC Lifetime ISA: deposit-building vehicle with 25% bonus
• HMRC/HMT 2025 Mortgage Guarantee Scheme: the relaunched 95% LTV guarantee
• Welsh Government Help to Buy Wales: the active equity loan scheme in Wales
• MoneyHelper Government schemes for first-time home buyers: independent MaPS consumer guidance