Help to Buy Scheme: A Complete Guide for First-Time Buyers

Help to Buy was a suite of government schemes designed to help people in England get on the property ladder. While the main equity loan scheme has now closed, understanding the options available can help you explore alternative routes to homeownership.

Help to Buy: Equity Loan

The Help to Buy: Equity Loan scheme ran from 2013 to March 2023 and was available for new build homes only. The government lent first-time buyers up to 20% of the purchase price (40% in London), meaning you only needed a 5% deposit and a 75% (or 55% in London) mortgage.

Key Details

Available for new build properties only
Property price cap of £600,000
Interest-free for the first 5 years
The equity loan must be repaid when you sell the home, remortgage, or at the end of the mortgage term
The amount repaid is based on the market value at the time, not the original loan amount

Shared Ownership

Shared ownership allows you to buy a share of a home (typically 25% to 75%) and pay rent on the remaining share. Over time, you can increase your share through a process called “staircasing” until you own the property outright.

Who Is Eligible?

First-time buyers, or previous homeowners who can't afford to buy now
Household income must be £80,000 or less (£90,000 in London)
You must be unable to buy a suitable home without assistance

Alternatives for First-Time Buyers

With Help to Buy equity loans now closed, first-time buyers can explore other options including Lifetime ISAs, shared ownership, First Homes (offering 30-50% discounts for local first-time buyers), and deposit unlock schemes offered by some developers.