Help to Buy equity loans ended in March 2023, and many first time buyers still ask us what’s replaced them. The honest answer is there’s no direct like-for-like replacement, but there are several schemes and options that can help — some of which are genuinely better suited to today’s market.

Here’s what’s currently available.

Lifetime ISA

The Lifetime ISA remains one of the best tools for first time buyers. Save up to £4,000 per year, and the government adds 25% on top — that’s up to £1,000 free money each year.

You can use it for a property purchase (up to £450,000) or retirement. The catch: if you withdraw for any other reason, you’ll pay a 25% penalty on the total — which means you lose more than the bonus.

If you’re planning to buy within the next few years, opening a LISA now makes sense even if you can only afford small monthly contributions. The bonus accumulates and it’s genuinely free money.

Shared Ownership

Shared ownership lets you buy a percentage of a property (typically 25-75%) and pay rent on the remainder. Your deposit is based on the share you’re buying, not the full property value — making the initial outlay much smaller.

You can “staircase” up over time, buying additional shares as your finances improve, eventually owning the property outright.

It’s not perfect — you’re paying both a mortgage and rent, service charges apply, and selling can be more complex. But for many first time buyers, it’s the most realistic route to getting on the ladder.

95% Mortgages

The mortgage guarantee scheme encouraged lenders to offer 95% LTV products, and many continue to do so. A 5% deposit is achievable for most buyers who can demonstrate consistent saving.

Rates at 95% LTV are higher than at lower LTVs, but they’re considerably better than they were a few years ago. We access products across the whole market and can find the most competitive 95% options available.

Family Support Options

Several schemes help family members support buyers without simply gifting cash.

Family springboard mortgages let parents deposit savings (typically 10% of the property value) into a linked account. The buyer gets a mortgage without a deposit. After a set period (usually 3-5 years), the parents’ savings are returned with interest — assuming all mortgage payments have been made.

Joint borrower, sole proprietor mortgages let parents’ income support the application without them being on the property title. Useful where the buyer’s income alone doesn’t stretch far enough.

We work with these products regularly across our Birmingham and Solihull clients. Each family situation is different, and the right structure depends on everyone’s circumstances and tax position.

First Homes Scheme

The First Homes scheme offers selected new-build properties at a minimum 30% discount to market value. The discount is passed on to future buyers, keeping the homes affordable in perpetuity.

Eligibility criteria apply — you must be a first time buyer, local connection requirements may apply, and household income caps are in place. Availability is limited and location-specific.

What We’d Recommend

Rather than chasing a single scheme, the best approach is usually a combination. A LISA for the bonus, consistent saving for deposit growth, and then the right mortgage product for your LTV bracket.

Every situation is different. Contact us and we’ll map out the best route for your specific circumstances. That’s what we do every day.