Help to Buy Alternatives 2026

Lifetime ISA (LISA)

Save up to £4,000 per year and the government adds a 25% bonus — that's up to £1,000 free money annually. You can open one between ages 18-39 and use it to buy your first home (up to £450,000) or for retirement after 60.

The catch: if you withdraw for any reason other than buying a first home or retirement, you lose 25% of the total withdrawal (which is more than just the bonus — you actually lose some of your own money too). Only use a LISA if you're certain you'll buy within the £450,000 limit.

Shared Ownership

Buy a share of a property (25-75%) and pay rent on the rest. Your mortgage is smaller because you're only buying part of the home. Over time, you can "staircase" — buying more shares until you own it outright.

Pros: much smaller deposit needed (usually 5% of your share, not the full property value). Cons: you pay rent AND a mortgage, service charges can be high, and selling is more complex.

First Homes Scheme

New-build homes sold at a minimum 30% discount to first-time buyers and key workers. The discount is locked to the property forever — when you sell, the next buyer gets the same percentage off market value. Maximum price after discount is £250,000 (or £420,000 in London).

Availability varies hugely by area. Check your local council's planning portal for First Homes developments near you.

95% Mortgages

Many high-street lenders now offer 95% LTV mortgages without government backing. You only need a 5% deposit. Rates are higher than 90% LTV products, but it gets you on the ladder sooner. On a £250,000 property, that's a £12,500 deposit instead of £25,000.

Bank of Mum and Dad

Family gifted deposits remain the most common route onto the ladder. If parents can't gift cash, some lenders accept a "family springboard" — parents deposit savings as security (usually 10% of the property value) which is returned after 3-5 years if all payments are made.

Calculate What You Can Afford

Use our mortgage calculator on CalcPad to see what monthly payments look like at different deposit sizes, interest rates, and terms. Understanding the numbers before you start viewing properties saves heartbreak later.