Last reviewed: June 2026
TL;DR- The Help to Buy equity loan scheme in England closed to new applicants on 31 October 2022 and to new completions on 31 March 2023.
- Existing Help to Buy equity loan borrowers still have their loans in place and must repay them when they sell, remortgage or at the end of the 25-year term.
- First time buyers in 2026 can use the Lifetime ISA, shared ownership, and standard 95% LTV mortgage products as alternatives.
- Wales, Scotland and Northern Ireland had separate Help to Buy schemes with their own closure timelines - these should be checked with the relevant government.
How Help to Buy Worked
The Help to Buy equity loan scheme in England provided a government loan of up to 20% of the purchase price of a new build property (40% in London) to eligible first time buyers. The buyer contributed a minimum 5% deposit and took a mortgage on the remaining 75% (55% in London). The government equity loan was interest free for the first five years and charged interest from year six onward.
The scheme applied to new build properties only, purchased from registered developers, up to a regional maximum purchase price cap set by Homes England. The equity loan was repayable when the property was sold, when the mortgage was redeemed, or at the end of the 25-year term.
The Scheme's Closure
The Help to Buy equity loan scheme in England closed to new applications on 31 October 2022. The final completions deadline was 31 March 2023. No new Help to Buy equity loans are available from Homes England for purchases completing after that date. The scheme ran from 2013 to 2023 and assisted several hundred thousand households in purchasing new build properties.
Scotland, Wales and Northern Ireland each had their own Help to Buy schemes, operated by their respective devolved administrations. These had separate application windows and closure dates. First time buyers in devolved nations should check the current position with the relevant housing agency.
Existing Help to Buy Borrowers
Homeowners who purchased using a Help to Buy equity loan still have the loan in place and must manage the repayment obligations. From year six onward, the equity loan attracts an interest charge - initially 1.75% of the original equity loan amount, rising annually by the Consumer Price Index plus 2%. The full equity loan is repayable when the property is sold, the first charge mortgage is redeemed or at the end of the 25-year term. The repayment amount is calculated as the same percentage of the property's market value at the time of repayment as the original loan represented - meaning the amount repaid may be more or less than the original loan depending on property price movements.
What First Time Buyers Can Use in 2026
With the Help to Buy equity loan no longer available for new applicants, first time buyers in England in 2026 have the following main options:
- Lifetime ISA: government bonus of 25% on savings up to £4,000 per year, usable on properties up to £450,000.
- Shared ownership: part-purchase from a housing association, with mortgage on the purchased share and subsidised rent on the remainder.
- Standard 95% LTV mortgage: 5% deposit products from mainstream lenders, subject to normal affordability criteria.
- First Homes scheme: discounted new build properties (minimum 30% below market value) sold to first time buyers who meet local eligibility criteria - available from registered developers in participating local authority areas.
- Mortgage Guarantee Scheme: a government scheme to encourage lenders to offer 95% LTV products - the current status and availability of this scheme should be checked via GOV.UK.
First Homes Scheme
The First Homes scheme provides new build properties at a minimum discount of 30% below market value to eligible first time buyers. The discount is preserved on future sales, meaning the property must be sold at the same percentage discount to the next first time buyer. Eligibility criteria include income caps and local connection requirements in many areas. Mortgage lenders must be willing to lend on First Homes properties - most mainstream lenders accept these but the leasehold restrictions on future sale price should be understood before purchasing.
Frequently Asked Questions
Can I still get a Help to Buy mortgage in 2026?
No new Help to Buy equity loans are available for purchases completing after 31 March 2023 in England. The scheme is closed. Existing Help to Buy borrowers still have their loans in place, but no new applications are being taken. Alternative schemes for first time buyers are listed above.
How is the Help to Buy equity loan interest calculated from year six?
From year six, the interest charge on the equity loan starts at 1.75% of the original equity loan amount per year. This increases annually by the Consumer Price Index (CPI) plus 2%. The interest charge is paid monthly as a management fee in addition to the first charge mortgage payment. Homes England manages the equity loan on behalf of the government and sends annual statements to borrowers.
What happens if I want to sell my Help to Buy property?
When a Help to Buy property is sold, the equity loan must be repaid as a percentage of the sale price equivalent to the original loan percentage. For example, if the original equity loan was 20% of the purchase price, 20% of the sale price is repayable to Homes England. The remaining proceeds (after repaying the first charge mortgage and equity loan) belong to the seller. Homes England must be notified before the sale is agreed.
Can I remortgage a Help to Buy property?
Yes. Help to Buy equity loan borrowers can remortgage the first charge mortgage to a new deal without repaying the equity loan, provided the new mortgage remains a first charge and the lender accepts the presence of the Help to Buy equity loan as a second charge. Homes England must grant permission for the remortgage. Some lenders may require the equity loan to be partially or fully repaid as a condition of remortgaging - specific lender requirements should be checked.
