Help to Buy Schemes Guide 2026: Government Support for First-Time Buyers
The UK government offers various Help to Buy schemes designed to make home ownership more accessible. These initiatives provide financial support, reduced deposit requirements, and shared ownership options for first-time buyers and other eligible purchasers.
What Are Help to Buy Schemes?
Help to Buy schemes are government-backed initiatives designed to help people onto the property ladder who might otherwise struggle with traditional mortgage requirements. These schemes reduce the amount of deposit needed and provide additional financial support.
Key Benefits
- • Lower deposits: Reduced deposit requirements (as low as 5%)
- • Equity loans: Government loans covering up to 40% of property value
- • Shared ownership: Buy a share of a property and rent the rest
- • Discounted properties: First Homes scheme offers up to 30% discount
Current Help to Buy Schemes
Help to Buy Equity Loan - CLOSED
Important: The Help to Buy Equity Loan scheme closed to new applications on 31 October 2022. This scheme is no longer available for new buyers.
Existing borrowers can continue with their loans, but no new applications are accepted.
Mortgage Guarantee Scheme (Freedom to Buy)
Introduced in July 2025, this permanent government scheme enables lenders to offer 95% loan-to-value mortgages with just a 5% deposit. The government provides guarantees to lenders, making it easier for buyers to access competitive mortgage rates with smaller deposits.
Shared Ownership
Buy a percentage share of a property (typically 10-75%) and pay rent on the remaining share owned by a housing association. Can 'staircase' to increase your ownership share over time.
First Homes Scheme
Offers new build homes at a discount of up to 30% below market value. Available to first-time buyers and former owner-occupiers.
Own New (Rate Reducer)
A developer-backed scheme on selected new-build homes where the builder contributes towards your mortgage costs. This can reduce your effective interest rate in the early years and improve affordability, subject to lender and developer participation.
Eligibility Criteria
Who Can Apply?
Help to Buy Equity Loan:
❌ Scheme closed - no new applications accepted
First Homes:
- • First-time buyers only
- • Former owner-occupiers (after 3+ years)
- • New build properties only
- • Income limits apply (£80k-£90k)
Mortgage Guarantee:
- • First-time buyers and home movers
- • Borrowers across the UK
- • No specific income limits
- • Available through participating lenders
Shared Ownership:
- • First-time buyers or qualifying circumstances
- • Maximum income £80k (£90k in London)
- • Cannot afford full deposit/mortgage
- • Must not own another UK property
- • Local connection may be required
Important Considerations
- • Income limits: Maximum household income restrictions apply
- • Property limits: Maximum property values vary by scheme and location
- • Time limits: Must complete purchase within strict timeframes
- • Legal implications: Additional legal agreements and restrictions
How These Schemes Work
First Homes Process:
1. Find a new build property advertised under First Homes
2. Check eligibility (income limits £80k-£90k, first-time buyer)
3. Get mortgage approval for at least 50% of discounted price
4. Purchase at minimum 30% discount, no shared ownership
Mortgage Guarantee Scheme Process:
1. Find any property and approach participating lender
2. Apply for mortgage with 5% deposit (91-95% LTV)
3. Lender uses government guarantee for higher LTV
4. Complete purchase with competitive rates
Shared Ownership Process:
1. Find property advertised for shared ownership (10-75% share)
2. Buy initial share (minimum 10%), pay rent on remainder
3. Can 'staircase' up to 75% ownership over time
4. Full ownership possible when you can afford it
Need Help with Help to Buy?
As an FCA regulated mortgage Adviser, I can guide you through the Help to Buy application process and help you find the best mortgage deals available under these schemes.
Active Scheme Limits 2026
First Homes:
Mortgage Guarantee:
Shared Ownership:
Important information
Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it. Please note that some mortgages such as commercial BTLs are not regulated by the FCA.