In 2026, the term 'Help to Buy' is still used by many as a catch-all phrase for government support. However, the landscape has shifted significantly since the original Equity Loan scheme closed its doors.
When this article was published in June 2026, first-time buyers were navigating a market where Bank Rate was 3.75%. This requires a more strategic approach to deposits and affordability than the era of ultra-low rates. Understanding the current role of these schemes is essential for anyone looking to step onto the property ladder this year.
What was the original Help to Buy Equity Loan?
The Help to Buy Equity Loan was a government scheme that provided a loan of up to 20% (40% in London) of the cost of a newly built home. Buyers only needed a 5% cash deposit and a 75% mortgage to make up the rest. The equity loan was interest-free for the first five years.
While this specific scheme ended in March 2023, its legacy defines how we view affordable housing today. Many homeowners who used the scheme are now reaching their five-year interest-free limit and are looking for a remortgage to consolidate the debt.
How does the First Homes scheme work in 2026?
The First Homes scheme has effectively taken over the role previously held by Help to Buy for new-build properties. It targets local first-time buyers and key workers, such as NHS staff and teachers.
Under this scheme, homes are sold at a discount of at least 30% compared to the market price. The discount stays with the property forever, meaning when you sell, the next buyer also benefits from the lower price. This helps maintain a stock of affordable housing in expensive areas.
Pro Tip: Not all developers offer First Homes, and local councils often have specific eligibility criteria regarding how long you have lived in the area. Check with your local authority early in your search.
Comparison: Modern Help to Buy Alternatives
| Feature | First Homes Scheme | Shared Ownership | Mortgage Guarantee Scheme |
|---|---|---|---|
| Typical Deposit | 5% of discounted price | 5% to 10% of share | 5% of total price |
| Ownership | 100% ownership | Partial (10% - 75%) | 100% ownership |
| Repayments | Mortgage only | Mortgage + Rent + Service Charge | Mortgage only |
| Price Cap | £250k (£420k in London) | Varies by share | £600,000 |
| Property Type | New build only | New build & Resale | Any legal residence |
Why is Shared Ownership popular now?
With house prices remaining high, shared ownership has become the go-to for many in 2026. It allows you to buy a share of a property and pay rent on the remaining portion.
This role is vital because it lowers the income threshold required to pass a mortgage lender's affordability test. Under the latest June 2026 FCA mortgage reforms, lenders must be even more cautious about 'stress testing' your finances. Shared ownership reduces the total borrowing needed, making it easier to meet these stricter checks.
The Mortgage Guarantee Scheme and 95% LTVs
If you don't want a specialized scheme, the Mortgage Guarantee Scheme provides a way to get a 95% mortgage. The government 'guarantees' the portion of the loan over 80% to the lender. This encourages banks to offer high-LTV (Loan to Value) products even during economic uncertainty.
In 2026, we see many lenders using this to support first-time buyers on existing 'second-hand' homes, not just new builds. This provides much-needed flexibility for those who prefer period properties or established neighborhoods.
How do the 2026 FCA reforms impact buyers?
The Financial Conduct Authority (FCA) recently published updated guidelines focusing on long-term sustainability for borrowers. These reforms mean that while 5% deposits are available, your 'disposable income' is scrutinized more heavily than before.
We look at your debt-to-income ratio and your monthly outgoings to ensure that the Bank Rate in force (3.75% when this article was published in June 2026)—or any future increases—won't put your home at risk. You can use our mortgage calculators to see how these ratios affect your borrowing power.
What I tell my clients
"The 'Help to Buy' name is gone, but the spirit of the scheme is very much alive in First Homes and Shared Ownership. The biggest mistake I see clients make is waiting until they have a 10% or 15% deposit while house prices continue to outpace their savings. In the current market, using a 5% scheme to get in early—provided the monthly costs are sustainable—is often the more pragmatic move. Especially with 90+ lenders available, we can usually find a competitive rate that fits even a smaller deposit."
— Matt Stevens, Mortgage & Protection Adviser
Steps to buying your first home in 2026
- Check your credit file: Use a service like Checkmyfile to ensure there are no errors that could trigger a decline under the new FCA rules.
- Determine your budget: Factor in not just the mortgage, but the insurance and service charges common with new-build schemes.
- Find a specialist lender: Some lenders are more 'friendly' towards Shared Ownership or First Homes than others.
- Register with your local Help to Buy agent: Even though the equity loan is gone, these regional agents still manage the administration for many affordable housing schemes.
Pro Tip: Always account for 'hidden' costs like Stamp Duty (if above the threshold), surveyor fees, and conveyancing. We recommend having at least £2,500 set aside beyond your deposit.
How we can help
At The Mortgage Genie, we have access to over 90 lenders, including those who specialize in low-deposit schemes. Whether you are looking for your first home or need to remortgage away from an old Help to Buy equity loan, we provide free initial advice tailored to your circumstances. See our guide for first-time buyers or read more about current mortgage rates to get started.
If you are ready to see what you can afford, the best next step is to speak with a professional who understands the latest regulations and scheme availability. Contact us today for a no-obligation chat about your options.