GOVERNMENT HOME BUYING SCHEMES IN ENGLAND

Help to Buy has changed. Here's what you can use instead.

If you're looking to buy your first home in England, there are still government-backed schemes that could help with your deposit, your mortgage or the cost of getting onto the property ladder.

From First Homes and Shared Ownership to the mortgage guarantee scheme and Lifetime ISAs, the right option depends on your circumstances, the property you're buying and how much you can afford to borrow.

See what's available

LOOKING FOR HELP TO BUY?

Start with your circumstances.

Tell us a little about what you're hoping to buy and we'll help you understand which routes may be worth exploring.

WHAT HAPPENED TO HELP TO BUY?

The Help to Buy scheme you may remember has closed.

Help to Buy: Equity Loan was once one of the best-known ways for first-time buyers in England to get help towards buying a new-build home. The scheme is now closed to new applications.

Help to Buy: Equity Loan

The scheme helped eligible buyers purchase new-build homes using a government-backed equity loan alongside their mortgage and deposit. It is no longer available for new applications.

Help to Buy ISA

You can no longer open a Help to Buy ISA. However, if you already have one, you can continue saving into it and may still be able to claim the government bonus when you buy an eligible first home.

There are still ways to get help

The end of Help to Buy does not mean government support for home buyers has disappeared. Other schemes are available, although the eligibility rules and the type of help they provide are different.

THE IMPORTANT BIT

Don't assume that a scheme you have heard about is still open, or that being eligible for a government scheme automatically means you'll qualify for a mortgage. The scheme and the mortgage need to work together.

GOVERNMENT SCHEMES AVAILABLE NOW

There isn't one replacement for Help to Buy.

Different schemes solve different problems. Some can reduce the deposit you need, some can help you buy a share of a property, while others can make saving for your first home more effective.

First Homes

Eligible first-time buyers may be able to buy certain homes at a discount to the market price, subject to the scheme's criteria and local requirements.

Find out about First Homes

Shared Ownership

Buy a share of an eligible property and pay rent on the remaining share. You may be able to buy additional shares later.

Understand Shared Ownership

Mortgage Guarantee

The government-backed mortgage guarantee scheme can support eligible 5% deposit mortgages, subject to lender and scheme criteria.

See how it works

Lifetime ISA

Eligible first-time buyers can receive a 25% government bonus on Lifetime ISA savings, subject to the account and property rules.

Understand the Lifetime ISA

Government schemes have their own eligibility rules and can change. Being eligible for a scheme does not guarantee that you will qualify for a mortgage. Your income, commitments, credit history, deposit and the property itself will still need to meet the lender's criteria.

FIRST HOMES

Could you buy a new home for less than its market value?

The First Homes scheme is designed to help eligible buyers purchase certain homes in England at a discount to their market value. Unlike Shared Ownership, you own the property rather than buying a share and paying rent on the rest.

At least 30% off the market value

First Homes are offered with a minimum 30% discount against their market value. Some local authorities may have additional requirements or restrictions.

There is a price limit

After the discount has been applied, a First Home normally cannot cost more than £250,000 outside London or £420,000 in Greater London. Local councils can set lower limits.

You still need a mortgage

A First Home isn't a replacement for a mortgage. Eligible buyers generally need a mortgage or home purchase plan covering at least 50% of the discounted purchase price.

Eligibility matters

The national criteria include being a first-time buyer and having a household income of no more than £80,000 outside London or £90,000 in London. Local criteria can also apply.

LOOKING AT A FIRST HOME?

If you've seen a First Home advertised, we can help you understand how the discounted purchase price could fit with your mortgage options.

MORTGAGE GUARANTEE SCHEME

A smaller deposit doesn't necessarily mean waiting longer to buy.

The Mortgage Guarantee Scheme is designed to support eligible 91% to 95% loan-to-value residential mortgages, meaning some participating lenders can offer mortgages to buyers with deposits as small as 5%.

The government guarantee is provided to participating lenders. It does not mean the government lends you the money or pays part of your deposit.

Example deposit 5%

Deposit Mortgage

The actual mortgage available to you will depend on the lender, property, affordability and your individual circumstances.

IMPORTANT TO UNDERSTAND

A 5% deposit doesn't automatically mean a 5% deposit mortgage will be right for you.

Lenders still assess your income, commitments, credit history, property and overall affordability. The scheme supports the lender's position — it doesn't remove the normal mortgage assessment.

LIFETIME ISA

Saving for your first home? The government may add to it.

A Lifetime ISA can be used to save towards your first home, with the government adding a 25% bonus to eligible savings. It can be useful alongside a mortgage plan, but there are important rules around who can open one and when the money can be used.

£4,000 Maximum you can pay into a Lifetime ISA each tax year

25% Government bonus on eligible contributions

£1,000 Maximum government bonus each tax year

There are rules around using the money for a home.

To use a Lifetime ISA towards a first home, the property must meet the scheme's conditions, including a maximum purchase price of £450,000. You also normally need to have made your first Lifetime ISA payment at least 12 months before the purchase.

The purchase must be made with a mortgage and a solicitor or conveyancer must act for you.

Don't confuse it with the old Help to Buy ISA.

New Help to Buy ISAs cannot be opened. If you already have one, different rules apply to the Lifetime ISA.

PLANNING AHEAD

A government bonus can help build your deposit, but the bigger picture is still the same: how much can you borrow, what property can you afford and what mortgage fits your circumstances?

THE MORTGAGE STILL MATTERS

A government scheme can help, but it doesn't replace mortgage advice.

Government schemes can change the numbers, but you still need to understand what you can afford to borrow and which mortgage works alongside the scheme you're using.

Your deposit

Work out how much you actually have available, including savings, eligible ISA bonuses and any other money you can legitimately use towards the purchase.

Your borrowing

A scheme may reduce the deposit or purchase price, but the mortgage lender will still assess your income, commitments, credit history and affordability.

The property

Some schemes only apply to certain properties, developments or price ranges. The property you want to buy needs to meet the relevant scheme rules as well as the lender's criteria.

The long-term cost

Look beyond the initial deposit. Mortgage payments, rent, service charges, interest, fees and future changes can all affect what the purchase really costs.

DON'T JUST LOOK AT THE DEPOSIT

The cheapest way into a home isn't always the same as the cheapest way to own it.

That's why it's worth looking at the whole mortgage and property picture rather than choosing a scheme simply because it reduces the amount you need upfront.

SCHEMES ARE CHANGING

There could be another option on the horizon.

The government has announced plans for a new first-time buyer scheme called Your First Home.

The proposed scheme is expected to provide government-backed equity loans of 20% for eligible first-time buyers purchasing new-build homes, potentially allowing buyers to put down a deposit of as little as 2.5%.

YOUR FIRST HOME

2.5% Potential minimum deposit

20% Proposed government equity loan

These figures are part of the government's announcement, but the full rules have not yet been confirmed.

WAIT FOR THE DETAIL

If you're planning to buy soon, don't put your plans on hold based on an announcement alone. The final eligibility rules, property price caps, costs and launch arrangements still need to be confirmed.

WHICH ROUTE COULD FIT?

Start with what you're trying to solve.

There isn't a single government scheme that works for every buyer. The right starting point is understanding the problem you're trying to overcome.

I have a small deposit

A mortgage using a smaller deposit may be possible, and the Mortgage Guarantee Scheme may be relevant to eligible buyers.

Think mortgage guarantee

I can't afford the whole property

Shared Ownership may allow eligible buyers to purchase a share of a property and pay rent on the remainder.

Consider Shared Ownership

I earn too much for some schemes

Scheme eligibility varies. A conventional mortgage may still be possible even when a particular government scheme isn't.

Look at the whole market

I've found a discounted home

If the property is being offered through First Homes, you'll need to meet the scheme's criteria as well as arrange an appropriate mortgage.

Check First Homes

I'm still building my deposit

A Lifetime ISA may help eligible first-time buyers build their deposit with a government bonus.

Look at your savings options

I don't know what applies

That's exactly where mortgage advice can help. We can look at your circumstances first rather than trying to make you fit a scheme.

Start with your situation

LOOKING AT YOUR OPTIONS?

You don't need to choose the scheme before you speak to us.

Start with your circumstances. We'll help you understand which routes may be worth exploring.

Whether you're a first-time buyer with a small deposit, looking at a discounted First Home, considering Shared Ownership or simply trying to understand what government support is available, the mortgage still needs to work for you.

Understand your borrowing position

Look at relevant government schemes

Understand the property restrictions

Find a mortgage that fits the numbers

GOVERNMENT SCHEME ENQUIRY

Tell us where you are in the process.

A few details about your plans will give us a useful starting point.