Help to Buy UK 2026: what schemes still exist and what replaced them

For 2026, the main government-backed first-time buyer routes are the Lifetime ISA, Shared Ownership and First Homes, after Help to Buy Equity Loan closed on 31 October 2022. The Lifetime ISA provides a 25 percent bonus on savings up to £4,000 per year, usable on properties up to £450,000.

Mortgages

What happened to Help to Buy

Help to Buy Equity Loan was introduced in England in April 2013 and became one of the most widely used first-time buyer schemes in UK history. Under the scheme, the government provided an equity loan of up to 20 percent of the property value (40 percent in London) interest-free for the first five years, allowing buyers to access mortgage rates available at 75 percent LTV with only a 5 percent deposit. The scheme applied to new-build homes only and was subject to regional price caps introduced in the 2021 phase. The scheme closed to new applications on 31 October 2022, with final completions accepted until March 2023. Buyers who took out a Help to Buy loan and still hold it are required to repay the equity share - as a percentage of current market value - when they sell, remortgage, or at the end of the 25-year loan term. Interest is charged from year six at 1.75 percent of the amount originally borrowed and rises every April by CPI plus 2 percent, or by RPI plus 1 percent for loans under the 2013 to 2021 scheme.

The Lifetime ISA: the main government saving incentive for first-time buyers in 2026

The Lifetime ISA (LISA) is the primary government savings incentive available to first-time buyers in England in 2026. Eligible savers aged 18 to 39 can open a LISA and deposit up to £4,000 per year, receiving a 25 percent government bonus (maximum £1,000 per year) on top. The funds can be withdrawn penalty-free for a first property purchase, provided the property is priced at £450,000 or below. If the property price exceeds £450,000, the LISA cannot be used for the purchase and withdrawing the funds incurs a 25 percent withdrawal charge, which effectively confiscates not just the government bonus but a portion of your own savings. The LISA can be a Cash LISA (savings account equivalent) or a Stocks and Shares LISA (invested). Bonuses are added monthly; you must have held the LISA for at least 12 months before using it for a property purchase.

Shared Ownership: buying a portion, renting the rest

Shared Ownership allows you to purchase a share of a property - a minimum of 10 percent under rules introduced in 2021 - and pay subsidised rent on the remainder, which is owned by a housing association or Homes England. The mortgage is taken out on the share you purchase, not the full property value, making the deposit and mortgage payments lower than an outright purchase. Over time, you can buy additional shares (staircasing) up to 100 percent ownership, at a price based on the current market value at the time of each staircasing transaction. The total monthly cost - mortgage payment plus rent - is often lower than renting privately but higher than a mortgage on an outright purchase of the same property. The properties are typically leasehold, and lease terms, service charges and resale restrictions are important factors to evaluate before committing.

First Homes: discounted new-build for key workers and local buyers

The First Homes scheme offers first-time buyers a minimum 30 percent discount on new-build properties in England, rising to 50 percent in some areas, subject to local connection or key worker criteria defined by the local planning authority. The discount is applied to the market value and is preserved in perpetuity on resale: when a First Homes property is sold, it must be sold at the same percentage discount to another eligible buyer. This makes First Homes properties cheaper to buy than equivalent market-rate properties but potentially restricts the buyer pool on resale. Local eligibility criteria vary; some councils prioritise NHS workers, teachers, armed forces personnel or those with a local connection to the area. Properties must be priced at no more than £420,000 in London or £250,000 elsewhere after the discount is applied.

Scotland, Wales and Northern Ireland: separate schemes

Scotland operates its own home ownership schemes independently of England. The Open Market Shared Equity (OMSE) scheme provides a government equity share of up to 40 percent for first-time buyers purchasing properties on the open market up to a regional price cap. The New Supply Shared Equity (NSSE) scheme applies to new-build purchases. In Wales, Help to Buy Wales offered a shared equity loan of up to 20 percent of the price, capped at £60,000, on new-build homes up to £300,000; the Welsh Government extended applications to 30 September 2026, and its website is the place to confirm whether a further extension has been announced. In Northern Ireland, the Co-Ownership scheme allows buyers to purchase a share of a property from 50 percent, with the option to staircase over time. All devolved schemes have their own eligibility criteria, price caps and application processes separate from the English equivalents.

Alternatives to government schemes: the 95 percent LTV mortgage market

With the Mortgage Guarantee Scheme made permanent from July 2025, 95 percent LTV mortgages are available from several mainstream lenders, with the government insuring lenders against part of their potential losses, though the rate premium at 95 percent LTV versus 90 percent or 85 percent is typically substantial. Building societies have historically been more active in the high-LTV market than banks. For borrowers who cannot reach a 10 percent deposit, family offset mortgages and guarantor products allow parents or other family members to use savings or property equity to support an application, enabling the borrower to access better rates than their own deposit alone would allow. Joint borrower sole proprietor mortgages allow a parent's income to be included in the affordability calculation without transferring equity in the property to the parent.

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Frequently asked questions

I have a Help to Buy loan outstanding. When do I have to repay it?

You must repay the Help to Buy equity loan in full when you sell the property, when you pay off your repayment mortgage, or at the end of the loan term, normally 25 years; part repayments of at least 10 percent of market value can be made at any time. The amount to repay is the same percentage of the current market value as was originally loaned - so if the property has risen in value, you repay more in cash terms than you received. Existing loans are handled by the Help to Buy customer service team on 0300 123 4123, and the repayment figure is based on a market valuation report from a chartered surveyor.

Can I use the Lifetime ISA with any mortgage?

Yes, provided the property qualifies (priced at £450,000 or below and a first residential purchase). You do not need a specific type of mortgage to use a LISA. The LISA funds are transferred directly from the LISA provider to the conveyancer at completion and are typically used toward the deposit. Where the co-buyer also has a Lifetime ISA, both can use their savings and bonus provided both are first-time buyers; the purchase must also be made with a mortgage, through a conveyancer or solicitor, at least 12 months after the first payment in.

What are the risks of Shared Ownership?

The main risks are: staircasing is based on current market value, so in a rising market the cost of buying additional shares increases significantly; service charges and ground rent (for leasehold properties) add to monthly costs and can increase over time; selling a Shared Ownership property requires the housing association to have a nomination period (typically eight weeks) to find another eligible buyer before it can be sold on the open market; and the property remains leasehold in most cases, with all the associated considerations around lease length and extension costs. Shared Ownership is not suitable for everyone; a thorough independent review of the lease terms is essential before proceeding.

Is there a Help to Buy equivalent for Scotland?

Yes. Scotland's Open Market Shared Equity (OMSE) scheme provides an equity loan of up to 40 percent for eligible first-time buyers purchasing properties on the open market up to a regional price threshold. The New Supply Shared Equity (NSSE) scheme provides similar support for new-build purchases. Applications are administered through approved solicitors in Scotland; contact the Scottish Government's More Homes division for current eligibility criteria and price thresholds.

Do I qualify for First Homes as a nurse?

Key workers, including NHS staff, are specifically identified as a priority group for First Homes eligibility in many local authority areas, but the specific definition of key worker and the local connection criteria are set by each local planning authority individually. Some councils specify which NHS roles qualify; others apply a broader definition. Check with the developer offering First Homes properties in your target area, or with the relevant local planning authority, to confirm whether you qualify before proceeding with an application.

How we verified this guide

Help to Buy closure dates and outstanding loan repayment rules were confirmed from HMRC and MHCLG published guidance. LISA rules including the £450,000 property cap were verified from HMRC's LISA guidance updated for 2025/26. First Homes scheme rules were confirmed against MHCLG's First Homes policy paper. Scottish and Welsh scheme information was taken from the respective devolved government guidance pages.

Primary sources

• gov.uk - Help to Buy Equity Loan scheme
• HMRC - Lifetime ISA guidance
• gov.uk - Shared Ownership scheme
• MoneyHelper - Government home buying schemes
• Citizens Advice - Buying your home guidance

Last reviewed: 14 October 2026.