How much Help to Buy you can get depends on the scheme. In Wales, Help to Buy - Wales can cover up to 20% of the purchase price on a new-build home worth up to £300,000, as long as you put down at least a 5% deposit and take out a repayment mortgage for the rest.
Existing Help to Buy ISA holders can still get a 25% government bonus worth up to £3,000, while eligible armed forces personnel can borrow up to 50% of annual salary, capped at £25,000, through Forces Help to Buy.
The Help to Buy: Equity Loan in England is now closed, but when it was open it offered up to 20%, or 40% in London. [1]
Help to Buy Amounts
Here's a summary of the amount you can get from various Help to Buy schemes [1]:
| Scheme | What you can get | Key details |
|---|---|---|
| Help to Buy - Wales | Up to 20% of the purchase price | 5% deposit. Homes up to £300,000. Runs until September 2026. |
| Help to Buy ISA | 25% bonus on savings, up to £3,000 | Save up to £200 a month. Existing account holders only. |
| Forces Help to Buy | Up to 50% of annual salary, capped at £25,000 | Interest-free. For eligible regular service personnel. |
| Help to Buy: Equity Loan (England, closed) | Up to 20%, or 40% in London | Closed. Was interest free for 5 years. |
As a quick guide, Help to Buy does not work the same way across every scheme. Some options boost your deposit or savings, while others cover part of the purchase price or offer an interest-free advance. The table above gives you the headline figures first. The sections below explain how each scheme works, who qualifies and what you’ll need to contribute yourself.
Help to Buy Schemes Explained
Help to Buy is a broad term used for a mix of government-backed home ownership schemes and products. Some are aimed at first-time buyers, while others may also be open to existing shared owners, some home movers and armed forces personnel who meet the criteria.
Here are the Help to Buy schemes that you should know about:
Anywhere in the UK
- Help to Buy ISA - this scheme has closed to new applicants. For those with a Help to Buy ISA, it can be utilised up until November 2029
- Forces Help to Buy - this is used in conjunction with other schemes
England
- Help to Buy: Shared Ownership
- Home Ownership for People with Long-Term Disabilities (HOLD)
- Older People’s Shared Ownership
- Help to Buy: Equity Loan - this scheme has now finished
Scotland
- Low-cost Initiative for First Time Buyers (LIFT)
Wales
- Help to Buy - this scheme has been extended until September 2026
Help to Buy ISA
The Help to Buy ISA is now closed to new applicants.
However, those who have a Help to Buy ISA can put £200 a month into their account until November 2029. You can then apply for a 25% bonus paid for by the government up to a maximum of £3,000. You can apply for your bonus until November 2030.
The property must be worth up to £450,000 in London or £250,000 elsewhere in the UK and must be where you intend to live.
Your solicitor or conveyancer will apply for the 25% bonus when the purchase has gone through.
Forces Help to Buy
The Forces Help to Buy scheme is for those in the armed forces. Servicemen and servicewomen are allowed to borrow up to 50% of their salary to purchase their first home. This amount is interest-free.
This scheme was first launched in April 2014 and was made permanent in January 2023.
Eligibility
Those who use the Forces Help to Buy scheme must be purchasing their first home or another property on assignment.
You must meet the following criteria:
- Have completed the pre-requisite length of service
- Have a minimum of 6 months left to service when applying
- Meet medical categories
Applying For A Forces Help to Buy
When you apply for the Forces Help to Buy, you can borrow up to 50% of your annual salary. This is up to a maximum of £25,000 which can then be put towards the deposits or other costs including the estate agent and conveyancing fees.
You can apply for the loan online via the Joint Personnel Administration system. You can seek further advice on the application process via their Chain of Command or personnel agency.
Help to Buy: Equity Loan
The Help to Buy: Equity Loan in England is now closed, with the final completion deadline having passed on 31 March 2023. Help to Buy - Wales is a separate scheme and is currently due to run until September 2026.
The Help to Buy: Equity Loan provided a government loan of up to 20% (40% if you’re buying in London) of the total cost of the house.
You had to pay a 5% (or more) house deposit and apply for a mortgage of 25% (or more) to pay for the rest of your newly-built home. For the first five years of owning your new-build home, the government did not charge interest on their 20% loan.
Eligibility
The Help to Buy: Equity Loan was available to first-time buyers who wanted to get on the property ladder and buy a home. The home must have been a new-build property and sold by a registered homebuilder. The property must not have previously been lived in before and had to have been the only home that they owned.
To be eligible for the Help to Buy: Equity Loan, they must have met the following criteria:
- Be 18 or over
- Be a first-time buyer
- Be able to afford the fees and interest payments
- Do not own a property or land in the UK or abroad
- Have not had any form of Sharia mortgage
Regional Caps
These were the regional price caps for the Help to Buy: Equity Loan scheme in England before it closed. The maximum loan amount was 20% in every region except London, where it was 40%. Wales ran a separate scheme, which currently has a maximum purchase price of £300,000.
Here were the regional property price caps:
| Region | Maximum Property Purchase Price |
|---|---|
| North East | £186,100 |
| North West | £224,400 |
| Yorkshire and the Humber | £228,100 |
| East Midlands | £261,900 |
| West Midlands | £255,600 |
| East of England | £407,400 |
| London | £600,000 |
| South East | £437,600 |
| South West | £349,000 |
The Help to Buy: Equity Loan ended on 31 March 2023 in England. The scheme is closed to new applicants in Scotland.
Repaying The Help To Buy Equity Loan
The Help to Buy: Equity Loan must be repaid after 25 years or earlier if you decide to sell your house. One of the advantages of the loan is that no interest is charged in the first 5 years of the loan. However, after this, you will have to pay a monthly interest fee of 1.75%.
In order to reduce your monthly payments following the first 5 years, you can choose to repay half or all of the loan within this time.
If you do decide to sell your house, you will pay back the percentage of the price you bought the house for. This means that if your house rises in value, the amount you owe will also increase. The amount you owe will decrease if your house has fallen in value. This is because you borrow a percentage of the property’s value rather than a fixed amount. This is why you will need a Help to Buy valuation on the home.
Help to Buy: Shared Ownership
The Help to Buy: Shared Ownership scheme means that you can buy a share worth between 10% and 75% of the property purchase price. This is ideal for those who cannot afford to pay a full deposit or mortgage payments for their home. Over time, you may be able to buy additional shares of your home.
You will own a certain percentage of the property’s value and then pay rent to the landlord for the remaining share. Your landlord can either be a private landlord, a housing association, or a council. The higher your share, the less rent you will owe to the landlord. You will need to pay a minimum 5% deposit of the share that you are buying.
Eligibility
The property must be leasehold. This means you will need to pay monthly ground rent and service charges. These will contribute toward the maintenance of any communal areas.
To qualify for shared ownership, your household income will usually need to be £80,000 a year or less, or £90,000 a year or less in London, and you must be unable to afford all of the deposit and mortgage payments for a home that meets your needs.
You may be eligible if you're a first-time buyer, used to own a home but cannot afford to buy now, are forming a new household, are an existing shared owner looking to move, or own a home and need to move but cannot afford one that suits your needs.
Paying Rent
When you undergo the Shared Ownership scheme, you will have to pay rent to your landlord. This rent will be determined by the share owned by the landlord and calculated accordingly. If your landlord owes a higher share of the property, you will owe more in rent compared to landlords who own a lower share of the property.
Landlords review the rent each year, so it can increase over time. For new-build shared ownership homes, the starting rent is capped at 3% a year of the value of the landlord’s share, although many landlords charge 2.75%.
Home Ownership for People with Long-Term Disabilities (HOLD)
The Home Ownership for People with Long-Term Disabilities is known as the (HOLD) Shared Ownership scheme. It has been designed to help those with long-term disabilities get on the property ladder. They will share ownership with a housing association or registered social landlord.
Applicants of the HOLD Shared Ownership can buy an initial share of a property between 10% and 75% of the market value. The owner then pays rent to the housing association or landlord that has been calculated on the share they do not own.
Like the Help to Buy: Shared Ownership scheme, you can buy additional shares later on if you wish.
Eligibility
There are requirements that applicants must adhere to before the application is approved. Here is the criteria:
- Applicants must be 18 or over
- They must have a long-term disability (this includes physical and learning disabilities, sensory and cognitive impairments, or enduring mental health issues)
- Total annual income is less than £80,000 for those outside London or less than £90,000 for those in London
- A first-time buyer, a previous homeowner who cannot purchase a new property, or in existing shared ownership and looking to move
Applying For The HOLD Shared Ownership
To apply for HOLD, start by looking for a shared ownership home that already meets your needs. If you cannot find one, contact a shared ownership provider offering HOLD in the area where you want to buy. Once they confirm you can go ahead, you can begin looking for a suitable property and instruct a solicitor or licensed conveyancer.
Older People’s Shared Ownership
The Older People's Shared Ownership is a scheme that has been designed for people aged 55 and over. Applicants can purchase a share between 10% and 75% of a property's market value and then pay rent on the rest.
This scheme is different from other Shared Ownership schemes as applicants can only purchase up to 75% of shares on the property. However, once someone owns 75%, they will not have to pay rent on the remaining amount.
Eligibility
Applicants must be aged 55 and over and meet the following requirements:
Annual household income must be less than £80,000 for those outside London or less than £90,000 for those in London
Either a first-time buyer, a previous homeowner who cannot afford to purchase a new property, or in an existing shared ownership and wanting to move. If you are looking to move, remember to you can get removal quotes through Compare My Move.
Applying for the Older People's Shared Ownership
To apply for Older Persons Shared Ownership, contact an organisation selling OPSO homes in your area. They will check your eligibility, talk you through the homes available and assess affordability before you reserve a property.
Low-Cost Initiative for First Time Buyers (LIFT)
The Help to Buy Scotland Equity Loan is now closed. However, those looking to buy a house in Scotland can apply for the Low-Cost Initiative for First Time Buyers, also known as LIFT.
There are two LIFT schemes that you should know about. These are the Open Market Shared Equity (OMSE) Scheme and the New Supply Shared Equity (NSSE) Scheme.
Open Market Shared Equity (OMSE) Scheme
The Open Market Shared Equity (OMSE) Scheme is available across Scotland. It is open to first-time buyers and those within priority access groups. These groups are:
- People who are aged 60 and over
- Those who rent from either a housing association or council
- Disabled people
- Members of the armed forces
To apply for the OMSE Scheme, you will need to contact the Link Homes administrating agent. When approved, you will receive a 'passport letter' that will tell you the maximum price that can be paid for a home.
New Supply Shared Equity (NSSE) Scheme
The New Supply Shared Equity (NSSE) Scheme is available across Scotland. It is best for those wanting to purchase a new build from a local council or housing association. It is also open to first-time buyers and those in the priority access groups, which are the same as above.
To apply for the NSSE Scheme, you will need to contact your local council or registered social landlord. They will then help you to fill out the application. Your social landlord will need to find out information on your current income, what size mortgage you can afford, and what personal contribution you can make amongst more.
Help to Buy Wales Equity Loan
Lastly, the Help to Buy Wales Equity Loan scheme is available for those living in Wales. This scheme is similar to the Help to Buy: Equity Scheme, but the criteria is different from England. The Help to Buy in Wales is now available until September 2026.
Applicants must provide a 5% deposit of the property price. The maximum loan available is up 20% of the property purchase price. You will need to take out a mortgage to pay the remaining amount.
Eligibility
The Help to Buy Wales scheme is similar to the Help to Buy Equity Loan in terms of eligibility. The property must be purchased from a registered developer.
You must meet the following criteria:
- Be purchasing an eligible home that does not exceed £300,000 (as of the 1st April 2023)
- Meet a minimum of EPC B
- Able to fund a minimum of 80% of the property price through a mortgage
- Provide a minimum deposit of 5% of the property price
- Must not sub-let any part of the home purchased through the scheme
- Must not be renting an existing home and purchasing a 2nd home through the scheme
Applying For The Help to Buy Wales Equity Loan
To apply for the Help to Buy Wales Equity Loan, you will need to follow a procedure to ensure that you qualify for the scheme. Make sure that you seek advice and guidance from a conveyancer before making your final decision.
Here is how you need to apply for the Help to Buy Equity Loan in Wales:
- Start by reading the Help to Buy - Wales Buyers Guide on the Welsh Government website which provides you with all the details you need to know on the scheme.
- Find an independent financial advisor who has been approved by the Help to Buy Wales scheme to provide you with guidance.
- Find an eligible property that is being sold by a registered Help to Buy Wales builder or developer.
- Submit your application form once you have completed the previous steps.
Repaying The Help To Buy Equity Loan
When your loan has completed, you will need to repay it within 25 years unless you repay it sooner. You can pay off your Help to Buy - Wales equity loan in full or in part during that time. This is separate from selling your home, which follows the scheme’s own sale process.
You will need to receive permission from Help to Buy (Wales) Ltd if you do decide to sell your home, make improvements or transfer ownership. You should complete the Post Sales Instruction Form.
You will have to instruct a valuer who is regulated by RICS to carry out a valuation to provide you with an accurate valuation.
Using Help to Buy
If you have decided that the Help to Buy scheme is for you, then you need to make sure that you instruct a regulated conveyancer. At Compare My Move, we have a network of partners who are verified and regulated so you can have peace of mind. They will guide you through the process and provide you with advice each step of the way.
Sources
[1] GOV.WALES, Help to Buy - Wales; GOV.UK, Help to Buy ISA; GOV.UK, Forces Help to Buy: help to get on the property ladder; GOV.UK, Help to Buy: Equity Loan
