Comparison · Mortgages & Home Buying · 2026
Help to Buy Equity Loan vs Shared Ownership 2026: Closed Scheme vs Live Route
Help to Buy Equity Loan in England closed to new applicants on 31 March 2023 and is no longer available to buy into. This guide is for two audiences: existing Help to Buy borrowers weighing repayment, staircasing or remortgaging, and prospective buyers now looking at Shared Ownership as the live low-deposit route in 2026.
TL;DR -- 30-Second Summary
- • Help to Buy Equity Loan is closed to new applicants since 31 March 2023 — existing loans continue as normal
- • Existing HTB borrowers get 5 years interest-free, then RPI+2% interest and repay a % of current value
- • Shared Ownership is the live route: buy 10-75% of a home, pay rent on the rest, small deposit on the share
- • Staircasing applies to both: buy further shares over time at up-to-date valuations
- • No direct national successor to Help to Buy exists yet — check gov.uk for current schemes
Side-by-Side Comparison
| Feature | Help to Buy Equity Loan (existing) | Shared Ownership |
|---|---|---|
| Open to new buyers in 2026? | No — closed since 31 March 2023 | Yes — live scheme |
| Ownership structure | You own 100%, government holds an equity loan (e.g. 20%/40%) | You own a share (10-75%), housing association owns the rest |
| Ongoing cost on unowned portion | Free for 5 years, then RPI+2% interest | Rent from day one, reviewed annually |
| Deposit needed | N/A now — was 5% of full price at purchase | Typically 5-10% of the share purchased |
| Staircasing | Buy further chunks of the equity loan share | Buy further shares, sometimes up to 100% |
| Repayment basis | Both are based on % of current market value at the time of the transaction, not the original price | |
Worked Example
Example A: an existing Help to Buy borrower bought a GBP 250,000 home in 2020 with a 20% (GBP 50,000) equity loan. Five years on, an independent valuation puts the property at GBP 290,000, so 20% of current value is GBP 58,000 — that is what they would need to repay or staircase against, not the original GBP 50,000. If they do nothing, interest begins at around 1.75% of GBP 50,000 (about GBP 875 a year) and then rises annually with RPI+2%.
| Measure | HTB borrower (Example A) | Shared Ownership buyer (Example B) |
|---|---|---|
| Property value | GBP 290,000 (current) | GBP 280,000 |
| Share owned / loan | 80% owned, 20% equity loan (GBP 58,000) | 40% share purchased (GBP 112,000) |
| Deposit paid | 5% of original price in 2020 (GBP 12,500) | 5% of the share (GBP 5,600) |
| Ongoing charge on unowned share | approx GBP 875/yr rising with RPI+2% | Rent, illustratively around 2.75% of unsold share per year (approx GBP 4,620), reviewed annually |
These figures are illustrative and simplified — always get a current RICS valuation for an existing Help to Buy loan and an up-to-date quote from the housing association for Shared Ownership rent before making a decision.
Managing an Existing Help to Buy Loan
If you already have a Help to Buy equity loan, the main decisions are whether to repay in full, staircase in stages, or remortgage to include the equity loan repayment. Doing nothing before the five-year interest-free period ends is a valid choice if you plan to sell or staircase soon after, but leaving it indefinitely means paying RPI+2%-linked interest that can climb faster than a typical mortgage rate in high-inflation years.
Get a Help to Buy-approved RICS valuation before deciding, since the repayment cost is fixed to your propertys current value, not what you paid. Some lenders now offer combined remortgage-and-repayment products, so speak to a broker who has handled Help to Buy cases before committing.
Shared Ownership as the Live Option
For anyone buying for the first time in 2026 without Help to Buy available, Shared Ownership offers the closest equivalent low-deposit structure: a smaller deposit because you only mortgage part of the property, combined with rent on the share the housing association retains. You can staircase up over time as income allows, and some newer leases allow staircasing to 100% ownership, though this varies by provider and property.
Check the specific lease terms carefully, including rent review mechanisms, service charges, and any restrictions on staircasing increments or subletting, since these vary between housing associations and can materially affect the long-term cost.