Help to Buy alternatives
With Help to Buy now closed to new applicants, first-time buyers need to explore other routes onto the property ladder. This article covers the main alternatives and how they compare.
In this guide
Shared ownership
Shared ownership lets you buy a share of a home, typically between 25% and 75%, and pay rent on the rest. It is available on new-build and resale properties and has income caps of £80,000 (£90,000 in London). Over time you can buy additional shares through staircasing.
Unlike Help to Buy, shared ownership is not limited to first-time buyers, though they receive priority. The monthly costs combine a mortgage payment and rent, which can be lower than buying outright but you need to factor in service charges and potential rent increases.
First Homes scheme
First Homes offers newly built homes to first-time buyers at a discount of at least 30% below market value. The discount is passed on when the property is sold in the future, ensuring it remains affordable for subsequent buyers.
Eligibility criteria include a household income cap of £80,000 (£90,000 in London) and a purchase price cap of £250,000 after the discount (£420,000 in London). Local councils may add further restrictions such as local connection requirements or key worker priority.
95% LTV mortgages
If you have a 5% deposit, many lenders now offer 95% LTV mortgages without the need for any government scheme. The Mortgage Guarantee Scheme has helped increase availability, and competition between lenders has brought rates down.
This is the most straightforward alternative to Help to Buy. You are not restricted to new-build properties, there are no income caps, and you own the property outright from day one. Learn more in our guide to 95% LTV mortgages. The trade-off is that interest rates at 95% LTV are higher than at lower LTV bands.
Related guides
More guides in our help to buy mortgage hub.
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