What happened to Help to Buy?
Help to Buy was a government equity loan scheme that provided first time buyers with a loan of up to 20% (40% in London) of the purchase price of a new-build home, interest-free for the first five years. The scheme was hugely popular but ended for new applications in October 2022, with final completions by 31 March 2023. No replacement with equivalent terms has been announced.
For buyers who used Help to Buy, existing equity loans remain in place and must be repaid when you sell, remortgage to repay the loan, or reach the end of your mortgage term. If you are currently on a Help to Buy equity loan and need to remortgage, a first time buyer mortgage broker can help navigate the specific requirements.
Lifetime ISA — the best savings boost available
The Lifetime ISA (LISA) is arguably the closest replacement to Help to Buy for saving towards a first home. Key features include:
- Save up to £4,000 per year and receive a 25% government bonus — that is up to £1,000 free per year
- Available to anyone aged 18 to 39 (you can continue contributing until age 50)
- The property must cost £450,000 or less
- You must have held the LISA for at least 12 months before using it
- Withdrawals for non-qualifying purposes incur a 25% penalty, meaning you lose some of your own money too
If you maximise contributions for four years, you would have £20,000 in savings plus £4,000 in bonuses — a total of £24,000 towards your deposit. The LISA can be a cash ISA or stocks and shares ISA, depending on your provider and risk appetite.
First Homes scheme
The First Homes scheme offers new-build properties to first time buyers at a discount of at least 30% below market value. Some local authorities apply discounts of 40% or 50%. Key eligibility criteria:
- Household income must be £80,000 or less (£90,000 in London)
- The discounted price must not exceed £250,000 (£420,000 in London)
- You must be a first time buyer purchasing the property as your main residence
- Local connection criteria may apply, and priority is given to key workers and armed forces in some areas
The discount is locked in through a restriction on the title, meaning when you sell, the next buyer also receives the same percentage discount. This keeps homes affordable long-term but does mean your future sale price is capped relative to market value.
Shared ownership
Shared ownership lets you buy a share of a property (typically 25–75%) and pay subsidised rent on the remainder to a housing association. This dramatically reduces the deposit required — you only need a deposit on your share.
On a £250,000 property where you buy a 25% share (£62,500), a 5% deposit would be just £3,125. Over time, you can staircase — buying additional shares — until you own the property outright. Under the new model lease, staircasing increments can be as small as 1%.
The trade-off is that you pay both a mortgage and rent, plus service charges, which can make total monthly costs higher than expected. Selling can also take longer due to the housing association's nomination period.
95% LTV mortgages
While not a government scheme, the widespread availability of 95% LTV mortgages means you can buy with just a 5% deposit. The government's mortgage guarantee scheme (introduced in 2021 and extended to June 2025) encouraged lenders to offer 95% LTV products by providing a government-backed guarantee on the portion of the loan above 80% LTV.
Although the guarantee scheme has ended, most major lenders continue to offer 95% LTV products. Rates at this level are higher than at 90% or 85% LTV, but for many first time buyers, buying sooner with a small deposit is better than waiting years to save more while property prices potentially rise.
Family support options
Gifted deposits
Around half of first time buyers in the UK receive some financial help from family. A gifted deposit is simply a cash gift that forms all or part of your deposit. Lenders require a signed declaration confirming the money is a gift (not a loan) and that the gifter has no interest in the property.
Family offset mortgages
Some lenders offer products where a family member places savings in a linked account. These savings offset the mortgage balance, reducing the interest charged. The family member retains ownership of their savings (which are returned after a set period), while the buyer benefits from lower mortgage costs.
Joint borrower sole proprietor
This arrangement allows a parent's income to be used in the affordability assessment without them being named on the property title. It increases how much the first time buyer can borrow while keeping the parent off the deeds. However, the parent is jointly liable for mortgage repayments.
Guarantor mortgages
A guarantor mortgage uses a family member's property or savings as additional security. If the buyer fails to make repayments, the guarantor becomes liable. This can help buyers who would otherwise not meet lender criteria on their own.
Deposit Unlock and developer incentives
Some housebuilders participate in the Deposit Unlock scheme, which allows buyers to purchase new-build homes with just a 5% deposit on properties that might otherwise require a higher deposit (new builds can sometimes face stricter lending criteria). The scheme is backed by insurance from the developer, giving lenders confidence to lend at higher LTVs on new-build properties.
Beyond formal schemes, developers often offer incentives to first time buyers including contributions towards stamp duty, legal fees, or upgrades to fittings and appliances. These are negotiable and worth exploring, particularly on larger developments where the builder is keen to achieve sales targets.
How a broker helps you navigate the options
With so many schemes and routes onto the ladder, it is easy to feel overwhelmed. A specialist first time buyer mortgage broker can assess your specific circumstances — income, savings, family support, location — and recommend the most suitable route. They know which lenders offer the best terms for each scheme and can compare the total long-term cost of shared ownership versus buying outright with a small deposit.
Get Matched Free with an FCA-regulated broker who specialises in helping first time buyers find the right path to homeownership.