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Help to Buy and shared ownership: buying with a smaller deposit

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Quick answer: The Help to Buy equity loan scheme has closed to new buyers, but shared ownership still lets you buy a share of a home (typically 25%–75%) and pay rent on the rest, making a first purchase possible with a much smaller deposit.

Getting onto the property ladder with a small deposit is hard. Several government-backed schemes aim to help — but they change often. This guide explains what is still open, how shared ownership works, and the trade-offs to weigh up.

How shared ownership works

You buy a share of a property with a mortgage and deposit on that share only, then pay rent to a housing association on the remaining share. Because your mortgage and deposit are based on a fraction of the value, the cash needed up front is much lower.

Over time you can 'staircase' — buy additional shares, sometimes up to 100%. Remember to budget for rent, a service charge and (in many cases) ground rent on top of the mortgage.

Other routes for first-time buyers

A Lifetime ISA gives a 25% bonus on savings towards a first home worth up to £450,000 — up to £1,000 of free money a year. The mortgage guarantee scheme supports some 95% mortgages, letting buyers purchase with a 5% deposit.

Weigh the help against the limits: shared ownership homes can be harder to sell, and scheme rules and availability change, so always check the current position on gov.uk before committing.

Common questions

Is Help to Buy still available?

The Help to Buy equity loan scheme is closed to new buyers. Shared ownership, the Lifetime ISA and the mortgage guarantee scheme remain the main routes for buyers with small deposits.

Can I own 100% with shared ownership?

In many cases yes, by staircasing — buying further shares over time until you own the whole property, subject to the terms of your lease.

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