Buyer schemes guide
Help to Buy is closed — what buyers use in 2026
The Help to Buy equity loan closed to new applications in England in March 2023, but the search traffic never stopped — because the deposit problem it addressed never went away. Four routes have taken its place in 2026. This guide compares them and shows where sold-price evidence fits into each decision.
The four routes compared
Lifetime ISA
- How it works:
- Save up to £4,000 a year; the government adds a 25% bonus (up to £1,000 a year).
- Limits:
- First home up to £450,000; account must usually be open 12 months before use; penalty on other withdrawals before 60.
- Fits when:
- You are one or more years from buying and want the deposit to grow with a guaranteed top-up.
Shared ownership
- How it works:
- Buy a 10%–75% share of a home and pay rent on the rest, with the option to staircase to higher shares later.
- Limits:
- Household income under £80,000 (£90,000 in London); homes are leasehold; service charge and rent apply on top of the mortgage.
- Fits when:
- Full ownership is out of reach locally but you want to stop renting and start building equity.
First Homes
- How it works:
- Selected new-build homes in England sold to first-time buyers at a discount of at least 30% against market value.
- Limits:
- Income under £80,000 (£90,000 in London); the discount binds on resale; councils may add local-connection or key-worker criteria; supply is development-specific.
- Fits when:
- You qualify locally and a participating development is being built where you want to live.
Mortgage guarantee (95% mortgages)
- How it works:
- A permanent government guarantee supporting lenders offering 95% loan-to-value mortgages.
- Limits:
- You still pass full affordability checks; rates at 95% LTV are higher than at 90% or below; small equity buffer if prices fall.
- Fits when:
- Your income supports the repayments but saving a 10% deposit would take years in your market.
Scheme parameters change — eligibility, caps and availability are set by government and can be updated. Confirm the current rules on gov.uk before committing.
Where sold-price evidence fits in
- First Homes: the 30% discount is measured against an assessed market value. Check what comparable homes nearby actually sold for, so you know what the undiscounted value should honestly be.
- 95% mortgages: with only 5% equity, paying over the local evidence is how buyers end up unable to remortgage. Compare the asking price with the street and postcode medians before offering.
- Shared ownership: the full market value used to price your share deserves the same scrutiny — it is the denominator of everything you pay.
- LISA planning: the £450,000 property cap is fixed; local sold prices tell you whether your target area realistically fits under it, or will within your saving horizon.
Important limitation
Scheme rules summarised here reflect their published form in mid-2026 and can change. This is general information, not financial advice — eligibility and suitability depend on your circumstances.
Check what first homes actually cost
Markets where typical first-time-buyer budgets go furthest:
Frequently asked questions
Is Help to Buy still available in 2026?
No. The Help to Buy equity loan scheme in England closed to new applications in March 2023. Existing loan holders still repay under their agreements, but new buyers need one of the current schemes: Lifetime ISA, shared ownership, First Homes or a 95% mortgage under the mortgage guarantee.
What is the closest current equivalent to Help to Buy?
Nothing replicates the government equity loan exactly. First Homes (a discount of at least 30% on selected new builds in England) is closest in spirit for new-build buyers; the permanent mortgage guarantee scheme tackles the deposit problem instead by supporting 95% mortgages.
How does the Lifetime ISA bonus work?
You can save up to £4,000 per tax year into a Lifetime ISA and the government adds 25% — up to £1,000 a year. The funds (with bonus) can go towards a first home costing up to £450,000. Withdrawing for any other reason before 60 usually triggers a penalty that can eat into your own savings.
Who qualifies for First Homes?
First-time buyers in England purchasing selected new-build homes, with a household income under £80,000 (£90,000 in London). The discount of at least 30% stays with the property when it is resold, and local councils can attach additional criteria such as local connection or key-worker status.
Are 95% mortgages a good idea?
They solve the deposit barrier at the cost of higher rates and greater exposure if prices fall. Before using one, compare local sold prices against the asking price carefully — at 95% LTV, overpaying even modestly can leave you in negative equity in a soft market.