Key Facts
- Primary keyword: help to buy - 2,900 monthly searches
- Independent editorial guide - no affiliate links, no commission
- Sources: FCA, gov.uk, HMRC, Money and Pensions Service
- Last reviewed June 2026
What Was Help to Buy?
Help to Buy was a UK government equity loan scheme designed to help people purchase new-build homes with a smaller deposit than standard mortgages require. Under the most widely used version, the government provided a loan of up to 20 percent of the property value (40 percent in London), the buyer provided a minimum 5 percent deposit, and a standard mortgage covered the remainder.
The equity loan element of Help to Buy was interest-free for the first five years, after which interest charges applied. The loan was repayable on sale of the property or after 25 years. Help to Buy was available only on new-build properties and was subject to regional price caps.
Help to Buy supported a significant number of purchases since its launch in 2013 but was criticised for inflating new-build property prices, benefiting developers disproportionately, and failing to address the underlying affordability challenge. The scheme closed to new applicants in England in October 2022 and in Wales in March 2023.
What Replaced Help to Buy in 2026?
No direct replacement for Help to Buy has been introduced since the scheme closed. The government schemes available to first time buyers in 2026 are the Mortgage Guarantee Scheme and shared ownership - neither of which provides an equity loan equivalent to Help to Buy.
The Mortgage Guarantee Scheme supports lenders offering 95 percent LTV mortgages by providing a government guarantee. This allows first time buyers with a 5 percent deposit to access mainstream mortgage products but does not reduce the purchase price or provide additional funds as Help to Buy did.
Shared ownership allows buyers to purchase a share of a property (10 to 75 percent) and pay rent on the remainder, reducing both the deposit and mortgage required. For buyers seeking to access new-build properties specifically, shared ownership through housing associations continues to provide a subsidised route to homeownership.
Help to Buy Remortgage: What Existing Holders Need to Know
Borrowers who purchased using Help to Buy and are now approaching the end of their first mortgage deal need to remortgage carefully. The Help to Buy equity loan remains outstanding and must be accounted for when the mortgage is renewed.
Most standard mortgage lenders will remortgage a Help to Buy property, but the terms of the equity loan - including the repayment obligation to Homes England and the interest charges that apply after year five - affect the financial calculations. The equity loan provider (Homes England) must be notified of any remortgage.
Borrowers who want to repay the Help to Buy equity loan on remortgage can do so if they have sufficient equity from property value appreciation. Repaying the equity loan removes the interest charges and simplifies the mortgage structure. A Help to Buy-experienced mortgage broker can advise on the most appropriate approach for specific circumstances.
Alternatives to Help to Buy for First Time Buyers
The Lifetime ISA remains one of the most effective tools for first time buyers saving a deposit. Contributions of up to 4,000 pounds per year receive a 25 percent government bonus of up to 1,000 pounds annually. The bonus is paid on top of any savings interest earned, accelerating deposit accumulation significantly.
Shared ownership provides access to homeownership with a smaller deposit than full purchase, and the staircasing mechanism allows buyers to increase their ownership share over time. For buyers in areas with active housing association development, shared ownership is a practical alternative to Help to Buy for accessing new-build properties.
The Mortgage Guarantee Scheme enables 95 percent LTV borrowing from mainstream lenders. While this does not reduce the purchase price like Help to Buy did, it allows buyers with a 5 percent deposit to proceed without needing a larger deposit. The range of lenders participating in the scheme has expanded since its introduction.
Help to Buy Scotland and Other Regional Schemes
Scotland has its own first time buyer support through the First Home Fund, which provides a contribution of up to 25,000 pounds toward the purchase of a first home. The scheme is administered by the Scottish Government and is available on both new-build and resale properties within price limits.
Wales had its own Help to Buy Wales scheme, which closed in March 2023. The Welsh Government has subsequently introduced the Homebuy scheme in some areas, providing an equity loan for specific affordable housing developments.
Northern Ireland has operated separate first-time buyer support schemes throughout the period of Help to Buy's availability in England. The Co-Ownership Housing Association provides shared ownership in Northern Ireland as an alternative route to homeownership.
First time buyers in each nation should check with the relevant housing authority for the most current schemes available, as these change periodically and the details vary significantly between nations.
Preparing to Buy Without Help to Buy
Without Help to Buy, first time buyers face the full deposit requirement for a standard or shared ownership mortgage. Structured saving using a Lifetime ISA, a cash ISA, and regular savings accounts is the most reliable route to accumulating the required deposit.
Reducing the target purchase price - by buying in a lower-cost area, buying a smaller property initially, or accepting a longer commute - can significantly reduce the deposit required. First time buyers who are flexible on location may find they can achieve homeownership with existing savings rather than waiting to save a larger deposit.
Buyers who receive family assistance should explore whether a gifted deposit, a joint borrower sole proprietor mortgage, or a guarantor mortgage from a family member might be appropriate. These arrangements can replicate some of the deposit-reduction benefit that Help to Buy provided, within a structure that does not require a government equity loan.
Disclaimer: This guide is for informational purposes only and does not constitute financial advice. Products, eligibility criteria and regulations change frequently. Consult an FCA-authorised adviser before making any decision. Kael Tripton Ltd is not authorised or regulated by the Financial Conduct Authority.
Frequently Asked Questions
Is Help to Buy still available in 2026?
No. Help to Buy equity loans closed to new applicants in England in October 2022 and in Wales in March 2023. The scheme is no longer available for new purchases. Existing Help to Buy borrowers still have their equity loans in place.
What replaced Help to Buy?
No direct replacement was introduced. The Mortgage Guarantee Scheme (5 percent deposit mortgage support) and shared ownership are the main government-backed routes to homeownership for first time buyers in 2026. The Lifetime ISA continues to provide a deposit savings bonus.
I have a Help to Buy loan - what do I do when I remortgage?
The equity loan remains outstanding when you remortgage. Most mainstream lenders will remortgage a Help to Buy property. After year five, interest charges apply on the equity loan. A mortgage broker experienced in Help to Buy remortgages can advise on the best approach.
Can I repay my Help to Buy loan early?
Yes. The equity loan can be repaid at any time, in full or in part (minimum 10 percent of the current property value per repayment). Repayment is at the current market value, not the original loan amount, so if the property has increased in value the repayment amount is higher.
What is the Lifetime ISA as a Help to Buy alternative?
The Lifetime ISA allows first time buyers under 40 to save up to 4,000 pounds per year and receive a 25 percent government bonus of up to 1,000 pounds annually. The bonus and savings can be used as a deposit for a first home purchase costing up to 450,000 pounds.
Sources
Last reviewed June 2026 · Kael Tripton Editorial
