When Does the Help to Buy Scheme End?

The Help to Buy Equity Loan scheme was a UK government initiative designed to help individuals purchase new-build homes. It made homeownership more accessible by reducing the initial deposit required from buyers. The scheme primarily served first-time buyers and, for a period, existing homeowners in England, enabling them to secure a mortgage with a lower loan-to-value ratio. Its core function was to provide an equity loan, supplementing the buyer’s deposit and mortgage, to bridge the gap to the property’s purchase price.

Help to Buy Equity Loan End Date

The Help to Buy Equity Loan scheme in England officially concluded for new applicants on October 31, 2022. Following this application deadline, specific dates were set for property purchase completion.

Properties reserved through the scheme needed to be build-complete by December 31, 2022. The deadline for legal completion was March 31, 2023. Limited extensions for legal completion were granted until May 31, 2023, but these were exceptional cases requiring approval from Homes England.

Launched in 2013, the scheme provided an equity loan of up to 20% of the property’s value, or 40% for homes in London, interest-free for the first five years. This allowed buyers to proceed with a minimum 5% deposit and secure a 75% mortgage (or 55% in London).

Regional Homeownership Scheme Status

While the Help to Buy Equity Loan scheme has ended in England, similar government-backed homeownership initiatives operate in other parts of the United Kingdom. Wales maintains its Help to Buy – Wales scheme, which has been extended. This program, available for new-build homes up to £300,000, offers an equity loan of up to 20% of the property’s value, requiring only a 5% deposit from the buyer.

The Help to Buy – Wales scheme was initially scheduled to end in March 2025 but is now available until September 2026. Scotland’s Help to Buy scheme closed to new applications on February 5, 2021, and ended on March 31, 2021. Other support programs like the First Home Fund and the Open Market Shared Equity scheme remain available to assist homebuyers in Scotland.

Northern Ireland does not have a direct “Help to Buy” scheme. However, it offers homeownership support through the Co-Ownership scheme, a form of shared equity. This program assists individuals in purchasing a share of a property and renting the remaining portion, providing a pathway to homeownership for those who cannot afford to buy outright.

Implications for Homebuyers

The conclusion of the Help to Buy Equity Loan scheme in England has reshaped the landscape for aspiring homeowners. Buyers must now typically secure a larger deposit, as the government’s equity loan is no longer available to bridge the gap between their savings and mortgage. This often necessitates a deposit of 10% or more of the property’s value, depending on the lender and specific mortgage product.

Mortgage availability for new-build properties without the equity loan component has also seen adjustments. Lenders now assess affordability based on higher loan-to-value ratios from the buyer’s direct mortgage, which can impact the amount individuals can borrow. Aspiring homeowners must prepare for potentially higher monthly mortgage payments and stricter lending criteria, emphasizing the importance of robust financial planning and thoroughly assessing mortgage options.

Alternative Homeownership Support

Despite the end of the Help to Buy Equity Loan scheme in England, several other government initiatives and financial products support homebuyers. The Lifetime ISA (LISA) is a savings account designed to help individuals save for their first home or retirement. The government adds a 25% bonus to savings, up to a maximum of £1,000 per year, on contributions of up to £4,000 annually. Funds from a LISA can be used towards a first home costing up to £450,000, provided the account has been open for at least 12 months.

Shared Ownership schemes offer another pathway to homeownership, allowing individuals to buy a share of a property, typically between 10% and 75%, and pay rent on the remaining portion. This model reduces the initial deposit and mortgage required, making homeownership more attainable, with the option to purchase further shares over time through ‘staircasing.’ The Mortgage Guarantee Scheme also aims to increase the availability of 95% Loan-to-Value mortgages by providing a government guarantee to lenders, reducing the risk associated with smaller deposits. A permanent version of this scheme was introduced in July 2025, encouraging lenders to offer more products for those with a 5% deposit.

The First Homes scheme, available in England, provides new-build homes to first-time buyers at a discount of at least 30% to 50% off the market value. This initiative is designed for local first-time buyers and key workers, with income caps typically set at £80,000 (£90,000 in London).