The UK-wide Help to Buy: Equity Loan scheme closed to new applicants in October 2022, and stopped accepting new applications entirely from March 2023.
Help to Buy – Wales is the only part of the scheme still open, and it's been extended by the Welsh Government several times, most recently by 18 months, taking the closing date for new applications to 30 September 2026.
It works like this: you put down a 5% deposit, the Welsh Government lends you up to 20% of the purchase price as an equity loan, and you take out a repayment mortgage for the rest (usually 75%). The loan is interest-free for the first 5 years, after which interest kicks in.
With a standard mortgage, you put down a deposit and borrow the rest from a lender. With Help to Buy – Wales, the Welsh Government lends you a chunk of the price too, interest-free for 5 years - so you need a smaller mortgage relative to the property's value.
For example, on a property worth £250,000:
| Amount | Percentage | |
|---|---|---|
| Cash deposit | £12,500 | 5% |
| Government loan | £50,000 | 20% |
| Mortgage | £187,500 | 75% |
Because your loan-to-value ratio is lower, you may be able to access cheaper mortgage rates than you would with a standard 95% mortgage, or afford a slightly more expensive home.
The equity loan is interest-free for the first 5 years. From year 6 onwards, you'll start paying monthly interest, plus a £1 monthly management fee that applies from day one.
Year 6: interest is charged at 1.75% of the amount you originally borrowed, paid monthly.
Year 7 onwards: the rate rises every April, by adding the increase (if any) in the Retail Prices Index (RPI) plus 1%. Even if RPI falls, the rate still goes up by at least 1% each year.
Management fee: £1 a month by direct debit, for as long as you have the loan.
You must repay the loan in full by whichever comes first:
When you sell your home
When you pay off your main mortgage in full
The end of the loan term (usually 25 years)
What you repay is based on the current market value of your home, not what you originally borrowed - the percentage stays the same, but the cash amount moves with house prices. For example, a 20% loan on a £200,000 home (£40,000) becomes £60,000 to repay if the home is worth £300,000 when you sell, or less if the value has fallen.
You can also make voluntary part-repayments (known as staircasing) at any time, each part-payment must be at least 10% of your home's current market value, and you'll need an independent valuation each time you do it.
Applications for Help to Buy – Wales close on 30 September 2026. The Welsh Government has extended the scheme's deadline more than once already, but there's no guarantee of a further extension this time, so it's sensible to treat this date as final.
If you want to use the scheme, it's worth:
Getting a Mortgage in Principle in place now, so you're ready to move when you find a property
Reserving a plot with a registered Help to Buy – Wales builder well before the deadline, new-build reservations, surveys and legal work all take time
Asking your builder or mortgage broker directly about the completion deadline that applies to your specific reservation, since this can be tighter than the application deadline
If you're not going to make the deadline, it's worth reading about the alternatives below. Several of them, particularly New Build Boost, are close substitutes.
A shared ownership mortgage lets first-time buyers across the UK buy a share of a property (usually between 10% and 75%) from a housing association, paying rent on the remainder. You can buy more shares over time, known as 'staircasing', to reduce the rent you pay.
Rules differ slightly by nation; visit the gov.uk shared ownership scheme website for more information.
Guarantor mortgages is a good option if you don't have a big deposit, have a low income, or a limited credit history. A friend or family member, the 'guarantor', doesn't own any share of the property but is legally responsible for the repayments if you fall behind.
A more flexible modern version of the guarantor mortgage. Family members can help either by linking their savings to your mortgage, or through a joint borrower sole proprietor (JBSP) mortgage, where they share the repayments with you without being a joint owner. Terms vary by lender.
New Build Boost is currently the closest replacement for Help to Buy in England and Wales. It's run by lender Gen H, not the government: you put down a 5% deposit, take an 80% loan-to-value mortgage from Gen H, and Gen H adds an interest-free 15% equity loan (the 'boost') to close the gap.
Unlike Help to Buy, the boost stays interest-free for the life of the loan - its value is frozen for the first 5 years, then moves with your home's value, capped at twice what you originally borrowed.
It's available on selected Persimmon and Charles Church developments, and since Gen H partnered with Lovell Homes in February 2026 a growing number of Lovell developments in England and Wales too. You'll need to be accepted for a Gen H mortgage, and it's currently only available on participating builders' developments, so ask your builder directly whether a plot qualifies.
The First Homes Scheme is available to first-time buyers in England with household income no more than £80,000 (£90,000 in London). Developers sell these new-build homes at a 30–50% discount to market value; after the discount, the price can't exceed £250,000 (£420,000 in London). The discount stays with the property - if you sell, your buyer must also be eligible and gets the same discount.
The Homebuy Scheme is only available in certain parts of Wales to buyers who qualify for social housing or can't stay in their current home, particularly useful in rural areas with fewer buying options. The government provides a 30% equity loan; you cover the remaining 70% through mortgage repayments and must repay the equity loan when you sell (or sooner if you choose), based on your home's value at that time.
The Low-cost Initiative for First Time Buyers (LIFT) scheme is available only to either first-time buyers or buyers in priority groups in Scotland.
There are two types of the scheme:
Both schemes allow you to borrow an equity loan from the government, meaning you won't have to put down as large of a deposit and can get a lower loan-to-value (LTV) mortgage.
A shared ownership mortgage lets first-time buyers across the UK buy a share of a property (usually between 10% and 75%) from a housing association, paying rent on the remainder. You can buy more shares over time, known as 'staircasing', to reduce the rent you pay.
Rules differ slightly by nation; visit the gov.uk shared ownership scheme website for more information.
Guarantor mortgages is a good option if you don't have a big deposit, have a low income, or a limited credit history. A friend or family member, the 'guarantor', doesn't own any share of the property but is legally responsible for the repayments if you fall behind.
A more flexible modern version of the guarantor mortgage. Family members can help either by linking their savings to your mortgage, or through a joint borrower sole proprietor (JBSP) mortgage, where they share the repayments with you without being a joint owner. Terms vary by lender.
New Build Boost is currently the closest replacement for Help to Buy in England and Wales. It's run by lender Gen H, not the government: you put down a 5% deposit, take an 80% loan-to-value mortgage from Gen H, and Gen H adds an interest-free 15% equity loan (the 'boost') to close the gap.
Unlike Help to Buy, the boost stays interest-free for the life of the loan - its value is frozen for the first 5 years, then moves with your home's value, capped at twice what you originally borrowed.
It's available on selected Persimmon and Charles Church developments, and since Gen H partnered with Lovell Homes in February 2026 a growing number of Lovell developments in England and Wales too. You'll need to be accepted for a Gen H mortgage, and it's currently only available on participating builders' developments, so ask your builder directly whether a plot qualifies.
The First Homes Scheme is available to first-time buyers in England with household income no more than £80,000 (£90,000 in London). Developers sell these new-build homes at a 30–50% discount to market value; after the discount, the price can't exceed £250,000 (£420,000 in London). The discount stays with the property - if you sell, your buyer must also be eligible and gets the same discount.
The Homebuy Scheme is only available in certain parts of Wales to buyers who qualify for social housing or can't stay in their current home, particularly useful in rural areas with fewer buying options. The government provides a 30% equity loan; you cover the remaining 70% through mortgage repayments and must repay the equity loan when you sell (or sooner if you choose), based on your home's value at that time.
The Low-cost Initiative for First Time Buyers (LIFT) scheme is available only to either first-time buyers or buyers in priority groups in Scotland.
There are two types of the scheme:
Both schemes allow you to borrow an equity loan from the government, meaning you won't have to put down as large of a deposit and can get a lower loan-to-value (LTV) mortgage.
Only in Wales. Help to Buy – Wales is open to new applications until 30 September 2026. The equivalent schemes in England, Scotland and Northern Ireland have already closed.
No. Existing homeowners moving to an eligible new-build can use Help to Buy – Wales, as well as first-time buyers. There's also no household income cap on the scheme.
No, you need a mortgage designed to work with the scheme, which may mean using a specialist lender or product registered with Help to Buy – Wales.
No. You can only use it to buy your main home. It can't be used for a buy-to-let investment, a holiday home, or any property you won't live in yourself.
Yes, as long as you can evidence a reliable income. Lenders will typically ask for at least 2 years of accounts or tax returns, in line with standard self-employed mortgage criteria.
Yes. Some remortgage deals are available specifically for people with a Help to Buy equity loan. Alternatively, you could remortgage for a larger share of your home's value and use the extra borrowing to repay the equity loan in full.
You're required to repay the loan in full by the end of the 25-year term, when you sell, or when you pay off your main mortgage, whichever comes first. If you're approaching the end of the term without a repayment plan, contact Help to Buy – Wales directly as early as possible to discuss your options.
Use the links below to find out about other mortgages
