Help to Buy has closed. What can first-time buyers use instead?

What Help to Buy was

A government equity loan on new-build homes. You put in 5%, the government lent up to 20% (40% in London) interest-free for five years, and a mortgage covered the rest. Applications in England closed in October 2022 and the last completions were in March 2023.

If you already have a Help to Buy loan, it still runs on its original terms, and repaying or remortgaging around it is something we arrange regularly.

95% mortgages

The closest thing to Help to Buy for most buyers now is a 5% deposit mortgage, backed in many cases by the government's mortgage guarantee. It works on new build and older homes alike. Unlike Help to Buy it does not lend you any extra money, so what you can afford rests on your income.

Shared ownership

You buy a share of a home, typically from 10% to 75%, and pay rent on the rest. The deposit is calculated on the share, so it can be small. The rent and service charge count against what a lender will let you borrow, and it is worth checking the lease carefully.

Family help and the Lifetime ISA

Gifted deposits, family-backed mortgages where a relative's savings or property stands behind the loan, and the Lifetime ISA's 25% government bonus on savings for a first home are all in use. Each has rules worth reading before you rely on it.

Working out what you can afford

Most lenders start around four and a half times income, some go higher for certain incomes and professions, and all of them take off commitments like loans, car finance and childcare. Our borrowing calculator gives a first figure. A conversation with us gives the real one.

After Help to Buy, answered

Is Help to Buy still available?

Not in England. The equity loan closed to new applications in October 2022. Wales has run its own scheme, so check the Welsh Government's current position if you are buying there.

What replaced Help to Buy?

Nothing directly. The main options now are 5% deposit mortgages, many backed by the government's mortgage guarantee, shared ownership, family-assisted mortgages and the Lifetime ISA.

How much can I afford without Help to Buy?

Roughly your deposit plus around four and a half times your income, less the effect of any commitments. Lenders vary, so the real figure depends on which lender you use.

I have a Help to Buy loan. What do I do when the interest starts?

You can keep paying the interest, repay the loan in full or in 10% steps, often by remortgaging. We can work out which makes sense.