Buying your first home can feel daunting, especially with rising property prices and ever-changing government support. Since the closure of the original Help to Buy: Equity Loan scheme, many first-time buyers are left wondering what help still exists in 2025. The good news is that while the landscape has evolved, several schemes remain available to make getting on the ladder more achievable. Here’s an up-to-date guide to the main options available right now—and how to decide which one could work best for you.
The End of the Help to Buy: Equity Loan Scheme
The Help to Buy: Equity Loan scheme officially ended in 2023, marking the close of a decade-long initiative that helped hundreds of thousands of people purchase new-build homes with just a 5% deposit. Under the scheme, the government provided an equity loan of up to 20% of the property’s value (40% in London), which was interest-free for the first five years. However, concerns about rising house prices and limited property choices led to its closure. While there’s no direct replacement offering equity loans, other schemes have filled parts of the gap—mainly focused on mortgage access and savings support.
The Mortgage Guarantee Scheme: Extended into 2025
The government’s Mortgage Guarantee Scheme, launched in 2021, has been extended until June 2025, giving buyers continued access to 95% loan-to-value (LTV) mortgages. This means you can buy with just a 5% deposit, while the government provides lenders with a partial guarantee on the mortgage. It’s available for both new and existing properties up to £600,000 and is open to both first-time buyers and movers. While it doesn’t offer financial support directly to the buyer, it’s been instrumental in keeping low-deposit mortgage options on the market through uncertain economic times.
The Lifetime ISA: Still the Smartest Way to Save
If you’re still in the saving stage, the Lifetime ISA (LISA) remains one of the best routes to boost your deposit. You can save up to £4,000 each tax year, and the government adds a 25% bonus—up to £1,000 annually—towards your first home or retirement. The property you buy must be worth £450,000 or less, and you must be aged 18–39 when opening the account. It’s often recommended using a LISA alongside a regular savings account to maximise flexibility and avoid penalties, as withdrawing funds for anything other than your first home or retirement incurs a 25% charge.
Shared Ownership: The Flexible Option
Shared Ownership remains a key route for first-time buyers who can’t afford to purchase outright. It allows you to buy a portion of a home—usually between 25% and 75%—and pay rent on the remainder. Over time, you can increase your share through “staircasing” until you own the property outright. The government’s updated Shared Ownership model, launched in 2023, reduced the minimum initial share to 10% for some developments and introduced 10-year repair support on new homes. This has made the scheme more accessible, though buyers should still budget for rent, service charges, and potential restrictions when selling.
The First Homes Scheme: Local Discounts for Local Buyers
The First Homes Scheme continues to run in 2025, offering eligible first-time buyers a minimum 30% discount on selected new-build properties. In high-cost areas, the discount can rise to 50%. The scheme prioritises local residents and key workers, ensuring affordable housing remains available to those who need it most. The discount stays attached to the property, meaning future buyers must also meet eligibility criteria—helping maintain affordability for generations. Price caps remain at £250,000 (after discount) across most of England and £420,000 in London.
Regional Limits and Eligibility Criteria
As LL Estates notes, each scheme has its own eligibility rules and regional restrictions. The Lifetime ISA’s £450,000 property cap can be restrictive in areas like London or the South East, while the Mortgage Guarantee Scheme offers broader flexibility. Shared Ownership and First Homes schemes, on the other hand, are often limited to specific developments or local authority zones. Eligibility typically depends on income, deposit amount, and residency status, so it’s worth checking with both your mortgage adviser and local housing providers before applying.
Pros and Cons of Buyer Support Schemes
There’s no one-size-fits-all solution when it comes to getting on the property ladder. The advantages of these schemes include lower deposit requirements, government bonuses, and improved access to lending. However, downsides can include resale restrictions, maintenance costs, and exposure to market fluctuations—particularly with new-build properties or shared ownership. As LL Estates highlights, it’s essential to weigh short-term affordability against long-term financial stability and consider future plans before committing.
Practical Steps Before You Apply
Preparation is key. Start by reviewing your credit report and ensuring your finances are in order—steady income, manageable debt, and an emergency fund are essential. Next, research which schemes you’re eligible for and get a mortgage agreement in principle from your lender. Gather necessary documentation early, such as payslips, ID, and bank statements, to avoid delays. Finally, speak to an independent mortgage adviser or financial planner who understands the 2025 property landscape. They can help you compare lenders, identify hidden costs, and decide whether to use a scheme or save independently.
While the original Help to Buy scheme may be gone, the government continues to support first-time buyers through several strong alternatives. The Mortgage Guarantee Scheme, Lifetime ISA, Shared Ownership, and First Homes Scheme all provide viable routes depending on your financial position and property goals. With careful planning and professional guidance, owning your first home in 2025 is still within reach—just with a few new rules to follow.
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