Help to Buy Alternatives for First-Time Buyers in 2026

Life After Help to Buy: Your Options in 2026

The Help to Buy equity loan scheme was one of the most successful government initiatives for first-time buyers in the UK, helping hundreds of thousands of people onto the property ladder since its launch in 2013. The scheme closed to new applications in October 2022, with final completions by March 2023, and many first-time buyers have been left wondering what has replaced it.

The good news is that while nothing has replicated Help to Buy exactly, there are now several alternative schemes and programmes designed to help first-time buyers purchase their own home — including some that are specifically tailored to the new build market. From government-backed initiatives like First Homes and Shared Ownership to industry-led schemes like Deposit Unlock and Own New Rate, plus personal savings tools like the Lifetime ISA, there are more routes to homeownership than many people realise.

This guide provides a comprehensive overview of every current alternative available in 2026, explains who each scheme is designed for, and helps you identify which option (or combination of options) could work best for your situation. If you are still in the early stages of saving for your deposit, understanding these schemes now gives you time to plan the most effective route to your first home.

What Made Help to Buy So Popular

Help to Buy allowed first-time buyers to purchase a new build home with just a 5% deposit, with the government providing an equity loan of up to 20% (40% in London). This meant buyers only needed a 75% mortgage (55% in London), which unlocked better interest rates and made monthly payments more affordable. At its peak, over 30% of all new build sales in England involved the scheme. The challenge for alternatives is replicating that combination of low deposit requirement and reduced mortgage costs — and while no single scheme does both equally well, several come close in different ways.

Deposit Unlock: 5% Deposits on New Builds

Deposit Unlock is an industry-led initiative that comes closest to replicating the low-deposit benefit of Help to Buy for new build homes. Launched by the Home Builders Federation (HBF) in partnership with major lenders and supported by a number of leading UK developers, the scheme allows first-time buyers to purchase a new build home with just a 5% deposit.

How It Works

Under Deposit Unlock, the developer provides an insurance-backed indemnity to the mortgage lender, which covers the additional risk of lending at 95% loan-to-value on a new build property. Normally, many lenders are cautious about high LTV lending on new builds due to concerns about the new build premium and potential short-term value fluctuations. The developer’s indemnity removes this barrier, giving lenders the confidence to offer 95% mortgages at competitive rates.

From the buyer’s perspective, the process is straightforward. You apply for a mortgage through a participating lender, put down a 5% deposit, and purchase the home in the normal way. There is no government loan to repay, no equity share arrangement, and no restrictions on future sales. You own the property outright from day one, just with a larger mortgage than if you had put down a bigger deposit.

Key Details

• Deposit required: 5% of the purchase price
• Property type: New build homes from participating developers
• Price cap: Typically up to £750,000 (varies by lender)
• Equity loan: None — you own 100% of the property
• Participating lenders: Includes Nationwide, Halifax, Barclays, and others
• Participating developers: Major housebuilders including Barratt, Taylor Wimpey, Persimmon, and many more
• Restrictions: Must be your primary residence; available to first-time buyers and home movers

Deposit Unlock is particularly attractive because it requires no government funding and no repayment of an equity loan. If you can afford the monthly mortgage payments on a 95% LTV mortgage, this scheme could be your simplest route to a new build home. Check with your mortgage broker whether the development you are interested in participates in the scheme.

First Homes and Shared Ownership

First Homes

First Homes is a government scheme that provides a discount of at least 30% on the market price of selected new build properties. The discount is passed on to future first-time buyers when the property is sold, making it a permanent form of affordable homeownership. First Homes are delivered as part of Section 106 planning obligations, meaning a proportion of homes on larger new build developments are allocated to the scheme.

To be eligible for First Homes, you must be a first-time buyer, have a household income of no more than £80,000 (£90,000 in London), and be able to secure a mortgage for at least 50% of the discounted price. The maximum discounted price is £250,000 (£420,000 in London). Local authorities can apply additional eligibility criteria, such as local connection requirements or key worker priority.

The discount is substantial. A property with a market value of £300,000 would be available to a First Homes buyer for £210,000 — a saving of £90,000. The restriction is that when you sell, you must sell at the same percentage discount to another eligible first-time buyer. This means your equity growth is based on the discounted price, not the full market value.

Shared Ownership

Shared Ownership allows you to purchase a share of a new build home (between 25% and 75%) and pay rent on the remaining share to a housing association. You can buy additional shares over time through a process called “staircasing” until you own the property outright. This scheme significantly reduces the deposit and mortgage required to get on the property ladder.

For a £250,000 property, buying a 25% share (£62,500) with a 5% deposit means you need just £3,125 upfront. Your mortgage would be approximately £59,375, with monthly rent payable on the remaining 75% share. The rent is typically set at 2.75% of the housing association’s share value per year, which is generally below market rent for the area.

Recent reforms have improved Shared Ownership significantly. The minimum initial share has been reduced from 25% to 10% in some cases, and a 10-year period for initial repairs responsibility by the housing provider gives buyers greater protection. Shared Ownership is available through housing associations on many new build developments across England.

First Homes vs Shared Ownership

Own New Rate and Lifetime ISA

Own New Rate

Own New Rate is an innovative scheme developed specifically for the new build market. It works by using a portion of the developer’s incentive budget to buy down the mortgage interest rate for the buyer, resulting in significantly lower monthly payments in the early years of the mortgage.

Here is how it works: instead of offering you a traditional incentive such as a deposit contribution or free upgrades, the developer puts a lump sum into an account with the mortgage lender. This lump sum effectively subsidises your mortgage rate, reducing it well below the standard market rate. For example, where a typical 5-year fixed rate might be 4.5%, an Own New Rate mortgage could offer 2.5–3.5% for the same fixed period.

The benefit is substantial. On a £250,000 mortgage, the difference between a 4.5% rate and a 3% rate saves approximately £200 per month, or £12,000 over a 5-year fixed term. At the end of the fixed period, you remortgage at the prevailing market rate, just as you would with any standard fixed-rate mortgage.

Own New Rate is available through selected developers and lenders. It works particularly well for buyers who have a sufficient deposit but want to minimise their monthly outgoings in the crucial first years of homeownership.

Lifetime ISA

The Lifetime ISA (LISA) is a savings account specifically designed to help people save for their first home or retirement. You can save up to £4,000 per year, and the government adds a 25% bonus — that is up to £1,000 of free money every year. The bonus is paid monthly, so your savings grow consistently throughout the year.

The property must cost £450,000 or less, and you must have held the LISA for at least 12 months before using it. The LISA can be combined with other schemes and with any developer incentives, making it a powerful component of your overall home-buying strategy.

For a first-time buyer who starts a LISA early, the government bonus can contribute significantly to the deposit. Saving the maximum £4,000 per year for four years would give you £16,000 in contributions plus £4,000 in government bonuses, totalling £20,000 before interest. If you are buying as a couple and you both have LISAs, you could accumulate £40,000 over the same period.

Other Savings Boosters

• Regular savings accounts: Many high-street banks offer regular saver accounts with enhanced interest rates for monthly deposits. These are a good complement to a LISA for shorter-term savings goals.
• Cash ISAs: Tax-free savings that can be used alongside your LISA. The annual ISA allowance is separate from the LISA allowance.
• Mortgage deposit guarantee: Some lenders offer 95% mortgages backed by a government guarantee scheme, reducing the deposit you need to 5%.
• Family support: Schemes such as family offset mortgages, guarantor mortgages, and gifted deposits from parents helping with the purchase can supplement your own savings.

Forces Help to Buy and Local Authority Schemes

Forces Help to Buy

The Forces Help to Buy scheme is specifically designed for serving members of the UK Armed Forces. It provides an interest-free loan of up to 50% of salary (to a maximum of £25,000) to help with the costs of purchasing a first home or moving to a new property. The loan is repaid over 10 years through salary deductions.

This scheme can be used to cover the deposit, mortgage fees, estate agent fees, or other costs associated with buying a home. It can be combined with other schemes and developer incentives, making it a powerful tool for service personnel. The scheme has been extended multiple times and remains popular among military buyers who often face unique challenges in getting on the property ladder due to frequent relocations.

Local Authority Schemes

Many local authorities across England operate their own affordable housing programmes and first-time buyer support schemes. These vary significantly by area but can include:

• Local equity loan schemes: Similar to the old Help to Buy but funded locally, offering equity loans of 10–20% on selected developments
• Discount market sale: Properties sold at a permanent discount (typically 20–30%) to local first-time buyers who meet specific criteria
• Key worker programmes: Priority access and financial support for teachers, NHS staff, police officers, and other essential workers
• Community-led housing: Cooperative and community land trust developments that offer homes at below-market prices to local residents
• Rent to Buy: Schemes where you rent a new build home at a reduced rate (typically 80% of market rent) for a set period, using the savings to build your deposit for eventual purchase

Contact your local council’s housing team to find out what schemes are available in your area. Many councils maintain a register of first-time buyers seeking affordable homeownership, and being on this list gives you early notification of opportunities.

Employer-Backed Schemes

Some large employers, particularly in the public sector and major corporations, offer housing assistance to staff. These can include interest-free loans for deposits, preferential mortgage rates through partner lenders, and relocation packages that include housing support. Check with your HR department whether any such schemes are available to you.

Comprehensive Scheme Comparison

With so many alternatives available, choosing the right one depends on your income, savings, location, and long-term plans. The table below compares all current schemes side by side to help you identify which options are worth exploring further.

Which Scheme Suits Your Situation?

With multiple options available, the right choice depends on your individual circumstances. Here are some common first-time buyer scenarios and the schemes that work best for each.

Scenario 1: You Have a Small Deposit and Moderate Income

If you have saved a 5% deposit and can afford reasonable monthly mortgage payments, Deposit Unlock is likely your best option. It gives you full ownership of a new build home with a straightforward mortgage and no government equity loan to repay. Combine it with a Lifetime ISA to maximise your deposit with the government bonus, and ask about developer incentives to further reduce your upfront costs.

Scenario 2: You Have a Very Small Deposit and Lower Income

Shared Ownership is designed specifically for this situation. By purchasing a smaller share (25–50%), both your deposit and your mortgage are significantly reduced. As your income grows, you can staircase to increase your ownership share over time. Check if any First Homes are available on developments in your target area, as the 30%+ discount could bring a property within reach that would otherwise be unaffordable.

Scenario 3: You Want the Lowest Possible Monthly Payments

Own New Rate is specifically designed to minimise monthly costs in the early years. The subsidised mortgage rate can save £150–£250 per month compared to standard rates, giving you breathing room while you settle into homeownership. This is ideal if you expect your income to grow over the next few years.

Scenario 4: You Have Time to Save and Want the Best Deal

If you are 12 or more months away from buying, open a Lifetime ISA immediately and start saving the maximum £4,000 per year. Use the time to also build your credit score, research developments, and understand the buying process. When you are ready to purchase, you will have a larger deposit (boosted by the government bonus), a stronger credit profile, and access to better mortgage rates.

Scenario 5: You Are a Key Worker or Have Local Connections

Check your local authority schemes first. Many councils prioritise key workers (NHS, teaching, police, fire service) and long-term local residents for affordable homeownership programmes. These schemes can offer discounts or equity loans that rival what Help to Buy provided, but they are often not widely advertised. Contact your council’s housing team directly.

Scenario 6: You Are in the Armed Forces

The Forces Help to Buy scheme provides up to £25,000 as an interest-free loan, which can be combined with any other scheme or developer incentive. This is one of the most generous support packages available and can make a significant difference to your deposit size and mortgage affordability.

Frequently Asked Questions

Can I combine multiple schemes when buying a new build?

In many cases, yes. The Lifetime ISA can be combined with virtually any other scheme, as it is simply a savings vehicle. Developer incentives can typically be used alongside Deposit Unlock, Own New Rate, and other schemes, subject to the mortgage lender’s incentive thresholds. However, you generally cannot combine First Homes with Shared Ownership, or use two government equity loan schemes simultaneously. Always check the specific rules of each scheme and discuss combinations with your mortgage broker to ensure compatibility.

Is there anything as good as Help to Buy for first-time buyers?

No single scheme replicates Help to Buy exactly, but several alternatives are arguably better in specific ways. Deposit Unlock provides a 5% deposit route without requiring repayment of an equity loan. Shared Ownership allows you to buy with an even smaller deposit. First Homes offers a larger permanent discount than Help to Buy’s temporary equity loan. The Lifetime ISA provides a straightforward 25% government bonus on your savings. By combining the right schemes for your situation, you may find yourself in a comparable or even better position than you would have been under Help to Buy.

What is the easiest way to buy a new build as a first-time buyer in 2026?

The most straightforward route is to save a 5% deposit, use the Lifetime ISA to benefit from the government bonus, and purchase through a developer participating in the Deposit Unlock scheme. This gives you 100% ownership, a standard mortgage, and no government equity loan to manage. Combine this with developer incentives for legal fees and upgrades, and you have a clean, uncomplicated route to homeownership. Speak to a mortgage broker who specialises in new builds to explore all available options.

Are Help to Buy alternatives available across the whole of the UK?

Availability varies by nation. Deposit Unlock, Shared Ownership, and the Lifetime ISA are available across England. Scotland has its own first-time buyer schemes including the First Home Fund (when funding is available) and shared equity options through housing associations. Wales operates its own Shared Ownership and Rent to Own schemes. Northern Ireland has Co-Ownership Housing, which is similar to Shared Ownership. Local authority schemes vary by council area throughout the UK. Always check which schemes are available in the specific area where you want to buy.

What happens if I used Help to Buy previously and want to move?

If you purchased a home using Help to Buy and now want to move, you will need to repay the equity loan when you sell your current property. The amount you repay is based on the percentage of the property’s current market value, not the original loan amount. For example, if you received a 20% equity loan and your property has increased in value, you repay 20% of the higher value. Once repaid, you are free to purchase another property, but you will no longer be classified as a first-time buyer, which means you will not be eligible for most first-time buyer schemes on your next purchase.

Your Route to Homeownership in 2026

While Help to Buy may have ended, the landscape for first-time buyers in 2026 is far from bleak. The combination of Deposit Unlock for low-deposit new build purchases, Shared Ownership for very affordable entry points, First Homes for discounted ownership, Own New Rate for reduced monthly payments, and the Lifetime ISA for government-boosted savings means there are genuine, accessible pathways to homeownership for a wide range of buyers.

The key is to understand which schemes apply to your specific situation and to plan accordingly. Start a Lifetime ISA as early as possible, research developments in your target area that participate in the schemes you are interested in, and work with a mortgage broker who understands the new build market and the full range of support available.

For more guidance on your new build journey, explore our guides on the step-by-step buying process, renting versus buying, and new builds versus older homes to help you make the best decision for your future.