Getting on the property ladder in 2025 can feel overwhelming. With the Help to Buy scheme no longer available, first-time buyers need to consider a range of alternative options to make home ownership more affordable.
From equity loan alternatives to savings schemes and government-backed mortgages, there are still plenty of ways to get started.
What Was the Help to Buy Scheme?
The Help to Buy equity loan scheme allowed first-time buyers to purchase a new-build property with just a 5% deposit. The government provided an equity loan of up to 20% of the property’s value, helping buyers reduce their mortgage borrowing.
Since the scheme ended, buyers have been looking for help to buy alternatives for first time buyers in 2025. While the original scheme is closed, other support is available, including the mortgage guarantee scheme, shared ownership and lifetime ISAs.
Shared Ownership: Buy a Portion, Pay Rent on the Rest
Shared ownership is ideal for buyers who cannot afford to buy a home outright. It allows you to purchase a share of a property, usually between 25% and 75%, and pay rent on the remaining portion to a housing association or local council.
This option offers a lower barrier to entry, and you can increase your share over time through staircasing. It’s a good fit for key workers or households with lower income who want stability and a path to full home ownership.
Lifetime ISA and Help to Buy ISA
The Lifetime ISA is a designated savings account that helps first-time buyers save towards a deposit. You can save up to £4,000 each tax year and receive a 25% government bonus, up to £1,000 per year.
Though the Help to Buy ISA has closed to new applicants, those who already have one can still use it. These tools are valuable alternatives to equity loan schemes, especially for buyers planning ahead.
The Mortgage Guarantee Scheme
The mortgage guarantee scheme helps buyers secure a mortgage with just a 5% deposit. The government offers a guarantee to mortgage lenders, which encourages them to approve high loan to value applications.
This scheme can be used for both new-build and existing properties and is open to first-time buyers and existing homeowners. It helps overcome one of the biggest barriers to buying a home — saving for a large deposit.
Deposit Unlock: Low Deposit for New Builds
Deposit Unlock is a newer scheme supported by major house builders. It allows buyers to purchase selected new-build homes with just a 5% deposit, similar to Help to Buy, but without a government equity loan.
This option suits buyers who want to avoid borrowing from family or using savings from a lifetime ISA. It’s especially helpful in a market where house prices remain high and saving a 10% or 15% deposit may be unrealistic.
Family Support: Deposit Boost and Springboard Mortgages
Some first-time buyers can benefit from family-assisted mortgages. Options like the Deposit Boost allow a family member to loan you money for your deposit. Springboard mortgages let family members place money into a savings account to act as security for your loan.
Other products consider a family member’s income to boost your borrowing power. These solutions provide flexibility without requiring a gifted deposit or joint ownership.
The First Homes Scheme
The First Homes scheme offers newly built properties at a discounted price, typically 30% below market value. It is aimed at local first-time buyers, key workers and members of the armed forces.
To qualify, you must meet eligibility criteria, including income and property price caps. This discount stays with the property, helping future buyers benefit too. It’s a useful way to buy in your local area without being priced out.
Income Boost Mortgages and Professional Schemes
For buyers with steady but modest incomes, income boost mortgages allow you to combine your earnings with a partner or family member to increase affordability. Some lenders also offer professional mortgage products for teachers, NHS workers and other low-risk borrowers.
These options support buyers who might otherwise struggle to meet lender affordability checks, especially in high-cost areas.
Understanding Your Mortgage Options
Mortgage lenders offer a wide range of products, including cashback mortgages, fixed rate deals and products specifically for first-time buyers. Working with a mortgage broker can help you compare options and find the right solution based on your deposit, income and financial history.
It’s important to check the eligibility criteria for each scheme and understand the long-term implications of borrowing, monthly payments and property value changes.
Choosing the Right Alternative for You
When exploring help to buy alternatives for first time buyers in 2025, consider:
- How much deposit you’ve saved
- Whether you can access family support
- If you want a new-build or existing home
- Whether shared ownership or full ownership is best
- Your monthly budget and long-term plans
Speaking to a mortgage broker or financial adviser can help you work through these options and choose the best route for your situation.
Ready to Get the Right Cover for You?
At The Mortgage and Protection Hub, we can help you explore help to buy alternatives and find the most affordable way to secure your first home in 2025.
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