UK Finance

Help to Buy Has Ended: What Are Your Options in 2026?

SYM

The Help to Buy equity loan scheme closed to new applications in 2023, leaving many first-time buyers wondering what options remain. The good news? Several alternatives exist, and some are arguably better suited to the current market. Here's your updated roadmap to homeownership.

Lifetime ISA (Your Best Friend)

The Lifetime ISA remains the single best tool for first-time buyers. The 25% government bonus on up to £4,000/year is free money. Over 5 years, that's up to £5,000 in bonuses. Open one immediately (even with £1) to start the 12-month qualifying period.

Shared Ownership

Buy a share of a property (25-75%) and pay rent on the rest. Benefits:
  • •Lower deposit needed (typically 5-10% of your share, not the full property)
  • •Gradually increase your share over time ('staircasing')
  • •Available through housing associations across the UK
  • •New builds and resale properties both available
  • •Mortgage payments + rent are often cheaper than renting privately

First Homes Scheme

First Homes offers 30-50% discount on new-build properties for local first-time buyers. The discount stays with the property forever. Eligibility varies by local authority, but generally you need household income under £80,000 (£90,000 in London) and the discounted price must be under £250,000 (£420,000 in London).

95% Mortgages

Several lenders now offer 95% mortgages without government backing. While the rates are higher than with larger deposits, they make homeownership accessible with just a 5% deposit. On a £200,000 property, that's a £10,000 deposit — achievable with a focused saving plan.
  • •Halifax, Nationwide, HSBC, and others offer 95% LTV mortgages
  • •Higher rates than 90% or 85% LTV — expect to pay 0.5-1% more
  • •Can remortgage to a better rate once you've built more equity
  • •Use a mortgage broker for the best deals (many are free)

FAQ

Is shared ownership worth it?+

For many first-time buyers, yes. The lower deposit and smaller mortgage make homeownership achievable years earlier than waiting to buy outright. The downsides: you pay rent on the unowned share, and selling can be more complex.

Can I use a Lifetime ISA with shared ownership?+

Yes! You can use your LISA bonus toward the deposit on a shared ownership property, as long as the full property value is under £450,000.

#help-to-buy#first-home#property#uk-finance#first-time-buyer

Start Your Savings Journey Today

20+ savings challenges, daily tracking, and achievement badges -- all free.

Download on the App Store