Home / First home buyers / Government schemes / Help to Buy
Help to Buy is a shared-equity scheme. The government contributes toward the purchase and holds an equity interest, while you own and live in the property.
Help to Buy is designed for people who can comfortably afford mortgage repayments but can't get over the deposit hurdle. The government takes an equity share in the property, which reduces the amount you need to borrow.
This is the part most summaries leave out, so it's worth stating plainly. Help to Buy has income caps, property price caps that vary by location, and a limited number of places. Meeting the deposit requirement is not the same as being eligible.
The caps are indexed and reviewed periodically. We'll check the current position against your circumstances rather than guessing.
Shared equity means shared capital growth. If the property rises in value, the government's share rises with it, and you'll typically repay their contribution based on the value at the time you buy them out or sell – not the amount originally contributed.
That isn't a hidden catch; it's the basis of the arrangement. But it means the scheme is not simply "free deposit help," and the long-term arithmetic is different from an ordinary purchase. It's worth modelling both before deciding.
You can generally buy out the government's share over time, subject to the scheme rules.
Generally yes, over time and subject to the scheme rules. The amount is usually based on the property's value at the time, not the original contribution.
Yes. Help to Buy is for owner-occupiers, and there are requirements around occupying the home.
The 5% Deposit Scheme keeps full ownership and full capital growth with you, but you borrow more. Help to Buy reduces your borrowing but shares the growth. Which is better depends on your income, your deposit and your plans.
