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Help to Buy was one of the most significant government property schemes in UK history, helping over 380,000 households get onto the property ladder between 2013 and 2023. The scheme ended in March 2023 in England, but it remains a hugely searched topic because many people are still repaying their equity loans, and new first-time buyers want to understand what replaced it. This comprehensive guide explains exactly how Help to Buy worked and, crucially, what your options are as a first-time buyer in 2025.
What Was Help to Buy?
Help to Buy was an umbrella name for a series of government schemes designed to help people buy homes — particularly first-time buyers who struggled to save large deposits. The main scheme in England was the Help to Buy Equity Loan, launched in April 2013 and administered by Homes England.
At its peak, Help to Buy was enormously popular. In 2021/22 alone, over 36,000 households used the equity loan to buy a home. Across the lifetime of the scheme, the government provided over £22 billion in equity loans. The scheme was designed for new-build properties only and was restricted to first-time buyers from 2021 onwards.
Brief History of Help to Buy
| Scheme / Phase | Period | Key Feature |
|---|---|---|
| HTB Equity Loan (Phase 1) | April 2013 - March 2021 | Available to all buyers (not just first-timers), up to 20% loan (40% in London) |
| HTB Equity Loan (Phase 2 / 2021-2023) | April 2021 - March 2023 | First-time buyers only; regional property price caps introduced |
| HTB ISA | December 2015 - November 2019 | 25% government bonus on savings; replaced by Lifetime ISA for new savers |
| HTB Mortgage Guarantee | 2013-2016 | Government guaranteed 95% mortgages; revived in 2021, ended 2022 |
| HTB Wales | 2013 - March 2023 | Devolved scheme; similar equity loan structure |
How the Help to Buy Equity Loan Worked
The Help to Buy Equity Loan (2021-2023 scheme, England) worked as follows:
- You provided a minimum 5% deposit from your own savings
- The government lent you up to 20% of the property value (up to 40% in London) as an equity loan
- You obtained a repayment mortgage for the remaining amount (minimum 25%, maximum 75% of property value)
- The equity loan was interest-free for the first five years
- From year 6 onwards, you paid a management fee of 1.75%, rising annually by the Consumer Price Index (CPI) plus 2%
Example: How Help to Buy Stacked Up
| Element | Amount (Example: £250,000 home) |
|---|---|
| Property price | £250,000 |
| Buyer's deposit (5%) | £12,500 |
| Government equity loan (20%) | £50,000 |
| Mortgage (75%) | £187,500 |
| Monthly interest cost (years 1-5) | £0 on equity loan |
| Monthly management fee (year 6, approx.) | ~£73 (1.75% of £50,000 ÷ 12) |
Eligibility and Regional Price Caps (2021-2023 Scheme)
The 2021-2023 Help to Buy scheme introduced regional property price caps for the first time, to better target the scheme at areas where it was most needed. The price caps varied significantly by region:
| Region | Maximum Property Price | Max Government Loan |
|---|---|---|
| London | £600,000 | £240,000 (40%) |
| South East | £437,600 | £87,520 (20%) |
| East of England | £407,400 | £81,480 (20%) |
| South West | £349,000 | £69,800 (20%) |
| East Midlands | £261,900 | £52,380 (20%) |
| West Midlands | £255,600 | £51,120 (20%) |
| Yorkshire and the Humber | £228,100 | £45,620 (20%) |
| North West | £224,400 | £44,880 (20%) |
| North East | £186,100 | £37,220 (20%) |
Help to Buy Repayment: What You Need to Know
If you currently have a Help to Buy equity loan, understanding the repayment rules is essential. Key points:
- You must repay the loan in full when you sell the property or at the end of your mortgage term
- You can make partial repayments (minimum 10% of the property's current market value at the time)
- The repayment amount is calculated as a percentage of the property's market value at the time of repayment — not the original loan amount
- If your property has increased in value, you repay more in cash terms (and vice versa)
- You must get a RICS valuation to establish the market value before repaying
Alternatives to Help to Buy in 2025
While Help to Buy has closed, there are several meaningful government schemes and strategies available to first-time buyers in 2025. Here is an overview:
Shared Ownership
Buy 10-75% of a home and pay rent on the rest. Smaller deposit needed. Staircase up to 100% over time.
First Homes
New-build homes at 30-50% discount for first-time buyers in England. Must use a mortgage. Income cap applies.
Lifetime ISA
25% government bonus on savings up to £4,000/year. Use for first home purchase up to £450,000.
Mortgage Guarantee Scheme
Government backs 95% LTV mortgages. Available on properties up to £600,000. Extended to June 2025.
Help to Buy ISA
Closed to new accounts in November 2019. Existing account holders can still save and use bonus until December 2030.
Help to Buy Equity Loan
Closed March 2023. Only relevant for existing borrowers managing repayments.
Shared Ownership in Detail
Shared Ownership is the most widely available government scheme for first-time buyers in 2025. It allows you to buy a share of a property (between 10% and 75%) from a housing association and pay subsidised rent on the remaining share. Over time, you can increase your share — a process called "staircasing" — up to 100% in most cases.
Who Qualifies for Shared Ownership?
| Criteria | England | London |
|---|---|---|
| Maximum household income | £80,000 | £90,000 |
| First-time buyer requirement | Yes (or former homeowner who cannot afford to buy) | Yes |
| Minimum share to purchase | 10% | 10% |
| Mortgage required | Yes (unless buying with cash for the share) | Yes |
Shared Ownership: Costs to Consider
Shared Ownership has some costs that are worth understanding before committing:
- Mortgage payments on your share of the property
- Rent on the share you do not own (typically up to 3% of the unsold equity per year)
- Service charges and ground rent (though ground rent was abolished on new leases from June 2022)
- Maintenance responsibilities — you may be liable for 100% of repair costs even when you own a smaller share
- Stamp Duty — you can choose to pay on your share only initially, or on the full market value
The First Homes Scheme
The First Homes scheme, launched in June 2021, offers new-build homes at a minimum 30% discount off market value (up to 50% discount in some areas). The discount is permanent and passes to future buyers when you sell — meaning you must sell at the same percentage discount.
First Homes Eligibility
- Must be a first-time buyer
- Combined household income must be no more than £80,000 (£90,000 in London)
- Must use a repayment mortgage
- Priority given to local residents and key workers (nurses, police, teachers, firefighters, armed forces)
- Property price after discount must be no more than £250,000 (£420,000 in London)
The Lifetime ISA (LISA)
The Lifetime ISA remains one of the most valuable tools available to first-time buyers in 2025. It allows you to save up to £4,000 per year and receive a 25% government bonus — up to £1,000 per year. The LISA and bonus can then be used to buy your first home.
LISA Key Facts
| Feature | Detail |
|---|---|
| Who can open one | UK residents aged 18-39 |
| Annual savings limit | £4,000 |
| Government bonus | 25% (up to £1,000/year) |
| Maximum property price | £450,000 |
| Minimum account age before use | 12 months |
| Withdrawal penalty (other purposes) | 25% (effectively losing 6.25% of your savings) |
| Maximum bonus over lifetime | £33,000 (if opened at 18, saving maximum until 50) |
The Mortgage Guarantee Scheme
The Mortgage Guarantee Scheme allows lenders to offer 95% Loan-to-Value (LTV) mortgages by providing government backing for the portion above 80% LTV. This means you can buy with just a 5% deposit on properties worth up to £600,000.
Unlike Help to Buy, the Mortgage Guarantee Scheme is not limited to new-build properties — you can use it to buy an existing home. However, the property must be your primary residence (not a second home or buy-to-let). The scheme has been extended several times and you should check gov.uk for the current availability.
How to Buy Your First Home in 2025: Step-by-Step
If you are looking to buy your first home in 2025 without Help to Buy, here is a practical roadmap:
- Check your credit score with all three main agencies (Experian, Equifax, TransUnion) — free checks are available online.
- Calculate what you can borrow — lenders typically offer 4-4.5x your gross annual income. Use our mortgage calculator below.
- Build your deposit — open a Lifetime ISA as soon as possible to benefit from the government bonus. Even a £1,000 deposit generates £250 in free bonus.
- Check your scheme eligibility — review Shared Ownership, First Homes, and Mortgage Guarantee Scheme to see which suits your situation.
- Get a mortgage Agreement in Principle (AIP) — this confirms how much a lender will lend before you start viewing properties.
- Instruct a solicitor / conveyancer — get quotes before you make an offer, as legal fees vary widely.
- Check Stamp Duty liability — first-time buyers in England pay no Stamp Duty on properties up to £300,000 (reduced from £425,000 after March 2025), and a reduced rate on properties up to £500,000.
- Make an offer and complete — typically takes 8-16 weeks from offer accepted to completion.
Frequently Asked Questions
Useful Calculators for First-Time Buyers
Use our free tools to plan your first home purchase and understand the costs involved.
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