The Help to Buy equity loan is closed to new applications in England, and new Help to Buy ISAs can’t be opened. Several schemes still help first-time buyers, but they work very differently: some add to your savings, some lower the price, and some let you buy part of a home. This page compares them and links to the full guide for each.
The schemes compared
| Scheme | What it does | Who it’s for | Where |
|---|---|---|---|
| Lifetime ISA | 25% bonus on up to £4,000 a year of savings | First-time buyers who open one aged 18 to 39, buying a home up to £450,000 | UK |
| 5% deposit mortgages | Government guarantee to lenders on 95% mortgages | First-time buyers and home movers | UK |
| First Homes | 30% to 50% off the market value of certain homes | First-time buyers with household income up to £80,000 (£90,000 in London) | England |
| Shared ownership | Buy a 10% to 75% share, rent the rest | Household income up to £80,000 (£90,000 in London) who can’t afford to buy outright | England (other nations have their own schemes) |
| Right to Buy | Discount on your council home | Council tenants of at least 3 years | England |
| Rent to Buy | Rent a home at a discount (normally 20% below market rent) while you save | Working first-time buyers | England outside London |
| Forces Help to Buy | Interest-free loan of up to 50% of salary, up to £25,000 | Serving armed forces personnel | UK |
Lifetime ISA
The Lifetime ISA adds a government bonus to what you save for your first home. You can use a Lifetime ISA, bonus included, towards your first home if it costs £450,000 or less, you buy at least 12 months after your first payment in, a conveyancer or solicitor acts for you and you buy with a mortgage; any other withdrawal before 60 costs a 25% charge. Full details: how to save for a house deposit.
5% deposit mortgages and the Mortgage Guarantee Scheme
Since July 2025 the government has run a permanent Mortgage Guarantee Scheme, which guarantees lenders against part of their losses on mortgages of more than 90% and up to 95% of a home’s value. It keeps 5% deposit mortgages available across the UK for first-time buyers and home movers. You don’t apply to it: you just take a 95% mortgage from a lender that uses it. See buying with a 5% deposit.
First Homes
First Homes are sold in England at 30% to 50% below market value to first-time buyers aged 18 or over earning up to £80,000 a year (£90,000 in London) who can get a mortgage for at least half the price; councils can add local criteria for the first 3 months a home is on sale. The discount passes on to the next buyer when you sell. See the First Homes scheme.
Shared ownership
You buy part of a home and pay rent to the landlord on the rest, with a deposit worked out on your share. You can buy more shares later (‘staircasing’). You can buy a 10% to 75% share of a home and pay rent on the rest if your household income is £80,000 or less (£90,000 in London), you can't afford a suitable home outright, and you're a first-time buyer, a former owner who can't afford to buy now, forming a new household, an existing shared owner moving, or an owner who can't afford a home that meets your needs. See shared ownership explained.
Right to Buy and Right to Acquire
Council tenants in England can usually buy their home at a discount after 3 years as a public sector tenant; since 21 November 2024 the maximum discount is between £16,000 and £38,000 depending on the region. Some housing association tenants can use Right to Acquire, with a discount of £9,000 to £16,000. See Right to Buy.
Rent to Buy
Rent to Buy lets you rent a home, normally at 20% below the market rent, so you can save a deposit. The first tenancy is for up to 2 years, which the landlord may extend, and you can buy a home as soon as you’ve saved enough and can get a mortgage. To be eligible you must be in full or part-time work, a first-time buyer (or returning to ownership after a relationship breakdown) and able to pay the rent and save at the same time. It covers England outside London; London has a separate scheme, London Living Rent.
Forces Help to Buy
Serving members of the armed forces can borrow up to 50% of their annual salary, to a maximum of £25,000, interest-free, towards buying a home, including the deposit and costs such as legal and estate agent fees. The Ministry of Defence made it a permanent scheme from 1 January 2023. You apply through JPA (Joint Personnel Administration), and you need more than six months left to serve when you apply; the full rules are in JSP 464.
What’s closed
- Help to Buy: Equity Loan, closed to new applications in England (Wales has its own scheme). Existing loans: see shared ownership vs Help to Buy.
- Help to Buy ISA, closed to new savers; existing accounts can still be paid into and used (see saving for a deposit).
- Help to Build, the self-build equity loan, closed to new applications in England.
Related guides
- First-time buyers guide: costs, deposits, schemes and stamp duty relief in one place
- Shared ownership explained: buying a share, paying rent on the rest and staircasing
- The First Homes scheme: discounted new homes for first-time buyers
- Right to Buy: buying your council home at a discount
- Help to Build: the closed self-build equity loan, and the options now
Your home may be repossessed if you do not keep up repayments on your mortgage. PocketWise provides information and guidance, not financial advice. Seek independent mortgage advice before making decisions about borrowing.