Help to Buy Alternatives in 2026: What Schemes Are Still Available for First-Time Buyers?
You’re Not Too Late — But the Landscape Has Changed
If you’ve been saving hard, watching house prices climb, and quietly hoping Help to Buy would still be there when you were ready — we understand how disheartening it is to find out it’s gone. The Help to Buy: Equity Loan scheme closed to new applicants in October 2023, and for many first-time buyers, that felt like the door slamming shut.
But it hasn’t. The door is still open — it’s just a different door now.
This guide walks you through the schemes that are genuinely still available in 2026, step by step, so you can find the right path for your situation.
Step 1: Understand Why Help to Buy Ended (and What It Meant)
Help to Buy: Equity Loan allowed first-time buyers in England to purchase a new-build home with just a 5% deposit, with the government lending up to 20% (40% in London) interest-free for the first five years.
It was hugely popular — but it was also criticised for inflating new-build prices and primarily benefiting developers. When it closed, it left a gap. Knowing what it offered helps you identify which alternative schemes come closest to filling it.
Step 2: Look Into the Mortgage Guarantee Scheme
The Mortgage Guarantee Scheme has been extended and remains one of the most accessible options for buyers with smaller deposits.
- You can buy a property with as little as a 5% deposit
- The government guarantees part of the mortgage, encouraging lenders to offer 95% loan-to-value (LTV) deals
- Available on properties up to £600,000
- Open to first-time buyers and existing homeowners
Tip: This doesn’t mean the government pays anything directly to you — it’s a backstop for lenders. You still need to pass full affordability checks.
Example: If you’re buying a £220,000 flat in Leeds, you’d need an £11,000 deposit (5%). Your mortgage would be £209,000 — which many mainstream lenders will now consider under this scheme.
Check the latest participating lenders via MoneyHelper at moneyhelper.org.uk.
Step 3: Explore Shared Ownership
If saving a full deposit feels impossible, Shared Ownership could be the most realistic route into homeownership for you.
Here’s how it works:
- You buy a share of a property — typically between 10% and 75%
- You pay rent on the remaining share to a housing association
- You can “staircase” — buy more shares over time as your finances improve
- You only need a deposit on the share you’re buying, not the full property value
Example: A home is valued at £280,000. You buy a 25% share (£70,000). With a 10% deposit on your share, you’d need just £7,000 — far more achievable for many people.
Pros: - Much lower deposit required - Gives you a foot on the ladder now - You build equity over time
Cons: - You pay both a mortgage and rent - Selling can be more complex - Service charges and maintenance fees can be high on leasehold flats
Search for available properties via Share to Buy (sharetobuy.com) or your local Help to Buy agent.
Step 4: Check If You Qualify for a First Homes Scheme Property
The First Homes scheme offers new-build homes to first-time buyers at a discount of at least 30% below market value — with some local authorities offering 40% or 50% discounts.
- Priority is often given to key workers and local residents
- The discount is passed on when you sell, keeping homes affordable for future buyers
- You must be a first-time buyer with a household income under £80,000 (£90,000 in London)
Important: Availability varies significantly by region. Check with your local council and search via the government’s own First Homes finder tool.
This scheme is particularly worth exploring if you live and work in an area where local wages make standard house prices completely unaffordable.
Step 5: Make the Most of the Lifetime ISA
If you’re not yet ready to buy, don’t overlook the Lifetime ISA (LISA).
- Save up to £4,000 per year
- The government adds a 25% bonus — that’s up to £1,000 free money annually
- Use it towards your first home purchase (property must be £450,000 or under)
- You must be aged 18–39 to open one
Example: Save £4,000 in year one, receive £1,000 bonus. Over four years of maximum saving, you’d accumulate £20,000 — with £4,000 of that being a government bonus.
Watch out: Withdrawing for any reason other than buying your first home or retirement before age 60 incurs a 25% government penalty, which effectively means you lose more than just the bonus.
Step 6: Talk to a Whole-of-Market Mortgage Broker
Whichever scheme you pursue, the single most important step you can take is speaking to a whole-of-market mortgage broker — ideally one who specialises in first-time buyers or low-deposit mortgages.
A good broker will:
- Compare deals across the entire market, not just one lender
- Know which lenders are most flexible on affordability criteria
- Help you understand stamp duty — which as a first-time buyer you won’t pay on properties up to £300,000 (reduced relief up to £500,000)
- Identify any local authority schemes you might have missed
Look for brokers authorised and regulated by the Financial Conduct Authority (FCA). You can check the FCA register at fca.org.uk/register.
Step 7: Don’t Give Up — But Be Realistic
We know how exhausting it feels to be priced out, let down by closed schemes, or unsure where to turn. But 2026 still has genuine options for first-time buyers — they just require more research and, often, a bit more patience.
Start with what you can control:
- Build your LISA if you’re eligible
- Check your credit report (free via Experian, Equifax, or TransUnion)
- Speak to a broker early, even if you’re 12–18 months away from buying
- Research Shared Ownership in your target area now
The path may be longer than you hoped — but it’s still there.
This article is for informational purposes only and does not constitute regulated financial advice. Always seek guidance from a qualified, FCA-authorised financial adviser or mortgage broker before making any financial decisions.