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 and industry-supported initiatives designed to help people onto the property ladder who might otherwise struggle with traditional mortgage requirements. In 2026 the landscape has shifted: the original Help to Buy Equity Loan is closed to new buyers, but routes such as the Mortgage Guarantee Scheme, First Homes, Shared Ownership, Own New and the Lifetime ISA remain relevant for the 2026/27 tax year.
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.
Lifetime ISA and Deposit Boost (2026/27)
A Lifetime ISA (LISA) is not a mortgage scheme, but it pairs well with many routes above. Eligible savers aged 18–39 can contribute up to £4,000 per tax year and receive a 25% government bonus (up to £1,000 annually) toward a first home that meets the property price cap, or toward retirement from age 60. Non-qualifying withdrawals attract a penalty, plan how it fits with your mortgage timeline.
Schemes and savings at a glance (2026/27)
Figures for the UK 2026/27 tax year: confirm on GOV.UK before acting.
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
Scheme rules change, verify before you offer
SDLT When Using a Scheme
Stamp Duty Land Tax is calculated on the price you pay, not the undiscounted market value. First Homes purchasers still pay SDLT on the discounted price (subject to first-time buyer relief thresholds). Shared Ownership SDLT can be paid in stages, your solicitor will advise on the most efficient election for your transaction in 2026/27.
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
Advice for Somerset, Dorset & Devon
Whether you are in Yeovil, Taunton, Exeter, Bournemouth, Dorchester, Sherborne, Weymouth or a surrounding village, Help to Buy, First Homes and Shared Ownership questions often share the same national rules, but local property prices, employment patterns and lender appetite still matter. Whole-of-market research helps you compare options beyond a single high-street branch.
I provide FCA-regulated independent advice from Yeovil with appointments by phone and video across the South West. See areas served for town-specific service pages.
Help to Buy and home schemes FAQs
Is the Help to Buy Equity Loan still available in 2026?
No for new purchases, it closed to new applications on 31 October 2022. Existing borrowers continue under their loan terms. New buyers should look at First Homes, Shared Ownership, Own New and the Mortgage Guarantee Scheme.
Can I combine a Lifetime ISA with Shared Ownership?
Often yes for deposit funding, but you must meet both LISA property rules and the housing association's eligibility. Check with your solicitor and mortgage lender.
Are First Homes available in Somerset and Dorset?
Stock depends on local authorities and developers. Register with housing associations and search new-build listings in your target town, availability in Yeovil, Dorchester or Weymouth varies month to month.
Does the Mortgage Guarantee Scheme guarantee my mortgage?
The government guarantee sits behind the lender, not you personally. You still undergo full affordability and credit checks; the scheme helps lenders offer higher LTV products.
What happens when I sell a First Homes property?
The discount usually passes to the next eligible buyer via a restriction in the title. This can affect resale value and lender valuation, understand the clause before you buy.
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. Some buy-to-let mortgages are not regulated by the FCA.
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.