If you have arrived here after searching for Help to Buy UK eligibility, it is important to know where the scheme actually stands. The Help to Buy equity loan scheme…
If you have arrived here after searching for Help to Buy UK eligibility, it is important to know where the scheme actually stands. The Help to Buy equity loan scheme in England closed to new applications at 6pm on 31 October 2022, and all legal completions had to take place by 31 May 2023. No new applications can be made, regardless of what older articles or property listings may still suggest. If a website or estate agent is promoting Help to Buy for a new purchase in England, the information is out of date.
That said, the scheme has not disappeared for everyone. Hundreds of thousands of households still hold an active equity loan (a loan where the government owns a share of the property's value), and the original eligibility rules remain relevant for staircasing, remortgaging, selling, or repaying the loan.
Lauren Basger, a solicitor in our new build conveyancing team, notes that buyers now need to look at replacement options and understand how the closure affects transactions already in progress. This article covers the original eligibility criteria for existing borrowers, the schemes that have taken its place, and the conveyancing points to be aware of.
How Help to Buy Eligibility Originally Worked (Reference for Existing Borrowers)
The Help to Buy equity loan scheme in England closed to new applications in October 2022, and the application window shut earlier that year. If you are researching help to buy uk eligibility today, confirm the current scheme status before making any plans. The government has not reopened the equity loan on the same terms. This summary is intended for context, and for those still repaying an existing loan.
To qualify originally, you had to be a first-time buyer purchasing a new-build home from a registered Help to Buy builder. Regional property price caps were introduced in April 2021, replacing the earlier single national cap, so the maximum purchase price depended on where in England you were buying. An approved lender carried out income and affordability checks in the usual way.
The funding structure required a minimum 5% cash deposit from the buyer, an equity loan (a government loan secured against a share of the property) of up to 20% of the purchase price, or up to 40% in Greater London, and a repayment mortgage covering at least 75% of the price.
The equity loan was interest-free for the first five years. From year six, an interest fee began accruing. It started at a low percentage of the loan amount and rose each year in line with an inflation-linked measure. These rates and thresholds have changed over time and should be verified with the Help to Buy administrator.
Solicitor Lauren Basger notes that redemption and staircasing on existing loans still requires careful new-build conveyancing advice.
Obligations for Existing Help to Buy Borrowers: Interest, Staircasing and Redemption
The Help to Buy equity loan scheme is closed to new applicants, but if you already hold a loan, several ongoing obligations continue to apply. It helps to understand these clearly and to check directly with Target HCA (the scheme administrator) for current processes and figures, as these are updated from time to time.
For the first five years, the equity loan is interest-free. From year six onwards, monthly interest fees apply, and the rate increases each year. These fees do not reduce the loan balance itself. They are a separate cost, similar to a service charge on borrowing.
The amount you eventually repay is tied to the current market value of your property, not the original sum borrowed. If your home has increased in value, so has the amount owed. If it has fallen, the repayment figure reduces accordingly.
Staircasing allows you to repay the loan in portions rather than all at once. The minimum part-repayment is usually 10% of the property's current value. Whenever you staircase or redeem in full, a RICS (Royal Institution of Chartered Surveyors) valuation is required, and it is only valid for a limited period.
Full repayment is triggered on three main events: selling the property, remortgaging (in some circumstances), or reaching the end of your main mortgage term. Lauren Basger notes that borrowers often underestimate the coordination involved between lender, administrator and conveyancer at redemption, so early planning helps. You can read more about our new build conveyancing support.
What Replaced Help to Buy: Schemes Available to First-Time Buyers Today
The Help to Buy equity loan scheme in England closed to new applications in October 2022, and the application window ended entirely in early 2023. If you are searching for help to buy uk eligibility today, the honest answer is that the equity loan is no longer open to fresh applicants. A handful of alternatives have taken its place, and each carries its own rules.
First Homes scheme. Selected new-build properties are sold at a discount of 30% to 50% below market value to local first-time buyers. Income caps apply, and a restrictive covenant (a binding condition on the title) means the same percentage discount must be passed on to the next buyer when you sell.
Shared Ownership. You buy a share of a property, typically between 10% and 75%, and pay rent on the portion the housing provider still owns. Over time you can staircase, buying further shares, subject to the terms of your lease.
Mortgage Guarantee Scheme. This supports lenders in offering 95% loan-to-value mortgages, meaning a 5% deposit may be enough on qualifying properties. Availability depends on the lender and your affordability checks.
Lifetime ISA (LISA). Savers aged 18 to 39 can pay in up to £4,000 each tax year and receive a 25% government bonus, which can be put towards a first home below the LISA property price cap. Withdrawing for other reasons incurs a penalty.
Lauren Basger, solicitor, notes that eligibility criteria, income thresholds and property price caps change from time to time. Figures should always be checked against current government guidance before you commit. For the conveyancing side of a new-build purchase, see our new-build conveyancing service.
Devolved Equivalents: Help to Buy Wales and Options in Scotland and Northern Ireland
Help to Buy in England closed to new applications in 2022, but the picture across the rest of the UK is different, and it changes. If you are buying in Wales, Help to Buy, Wales has operated as a separate scheme run by the Welsh Government, with its own equity loan terms and property price limits. Before you assume it is available for your purchase, check the current position directly at gov.wales. Extensions and revisions have happened before, so third-party summaries can quickly fall out of date.
Scotland and Northern Ireland have never used the England and Wales version of help to buy uk eligibility rules. In Scotland, the Low-cost Initiative for First Time Buyers (LIFT) offers shared equity routes through mygov.scot. In Northern Ireland, the Co-Ownership scheme (a shared ownership arrangement where you buy a share and pay rent on the rest) is the main equivalent, with details on nidirect.
Our solicitor Lauren Basger notes that buyers often rely on outdated blog posts rather than the official portals, which can lead to wasted time. Always verify the scheme status before instructing anyone. For the conveyancing side of a new build purchase, see our new build conveyancing service.
Solicitor Insight: Conveyancing Implications of Today's First-Time Buyer Schemes
If you are asking about help to buy uk eligibility, the honest starting point is that the Help to Buy equity loan scheme in England closed to new applications, and completions under it have ended. Anyone still relying on older information should verify the current scheme status before making offers. What remains for first-time buyers in England and Wales includes Shared Ownership, the First Homes scheme, and the Lifetime ISA, alongside standard high loan-to-value mortgages.
Lauren Basger, solicitor, notes that each of these routes carries legal detail that a headline summary rarely captures.
With Shared Ownership, the lease itself does the heavy lifting. We review the rent review clause (how the rent on the unowned share can rise), service charge provisions, and the staircasing terms that govern how you buy further shares later. Small differences here shape long-term affordability.
First Homes purchases involve a restrictive covenant registered against the title. In plain terms, that covenant caps the resale price and restricts who you can sell to in future, so it needs to be explained clearly before exchange, not after.
New-build purchases add their own pressure. Developers often set short reservation deadlines, which compress the time available to exchange contracts. We work to those deadlines where we can, but we will not cut corners on searches, planning checks, or warranty review to hit an arbitrary date.
For buyers who already hold a Help to Buy equity loan, redeeming it on sale or remortgage means coordinating with Target HCA, obtaining a RICS valuation, and completing a Deed of Release. Fees and thresholds change and should be checked at the time.
More detail on the process: new-build conveyancing.
Common Risks and Pitfalls to Consider Before Committing
Every scheme designed to help first time buyers comes with trade-offs. It is worth understanding them before you reserve a property.
First Homes carries a permanent covenant (a binding restriction on the title) requiring future sales at the same percentage discount. That narrows your resale market and can slow down finding a buyer. Shared Ownership properties can also be harder to sell on, and staircasing (buying additional shares in your home) becomes more expensive as the property's value rises, meaning full ownership may drift further out of reach rather than closer.
If you already hold a legacy Help to Buy equity loan, remember that the interest charged after the initial interest-free period is linked to inflation, and recent years have pushed those payments noticeably higher. Lifetime ISA holders should tread carefully too. Withdrawal penalties apply if the property exceeds £450,000 or the funds are used for a non-qualifying purpose, and that penalty can eat into your original contributions.
Lauren Basger, solicitor, encourages buyers to take independent legal and mortgage advice before signing a reservation form, not after. If you are buying a new build, our new build conveyancing team can talk you through the specific obligations attached to your chosen scheme.
Next Steps: Speak to a Conveyancing Solicitor About Your Options
The Help to Buy equity loan scheme in England closed to new applications in October 2022. If you were hoping to use it, you will need to look at what has replaced it: the Mortgage Guarantee Scheme, First Homes, Shared Ownership, and various Lifetime ISA or regional support options. Each has different rules, so the first task is working out which one actually fits your circumstances.
Once you have a shortlist, gather your ID, proof of first-time buyer status, and evidence of your deposit. Speak to a broker about a mortgage in principle before you make offers, as sellers and housebuilders will usually ask for it. Instructing a solicitor early matters too, particularly for new-build or shared ownership purchases, which involve tighter developer deadlines and lease terms that need careful review.
Lauren Basger and the team can talk through which route suits you and what the paperwork will involve. Contact us for advice tailored to your situation.
Disclaimer: This article provides general information only and does not constitute legal advice on any individual circumstances.