The biggest homebuying scheme myths in the UK debunked

MYTH #1 – The Help to Buy scheme is still available in England and Scotland

There are several versions of the Help to Buy scheme across the UK, each with different government-backed schemes across England, Wales, and Scotland, covering a range of products from equity loans to savings accounts. While the Welsh scheme remains open until September 2026, Help to Buy closed to applicants in Scotland in 2021 and England in 2022.

Despite this, our research found that users based in England searched for Help to Buy schemes over 250,000 times in the past year (an average of 20,925 per month), highlighting strong demand for homebuying help and suggesting ongoing confusion around the availability of one of the government’s best-known housing initiatives. Scottish users also searched for the schemes over 9,000 times over the year, averaging 810 monthly searches.

This contrasts with Wales, which saw 8,020 searches across the year (668 monthly average). It’s important to note that England’s population is much larger than Wales’ (approximately 57 million compared with Wales’ approximately 3 million). Even accounting for the population difference, the level of interest in England and Scotland suggests that many people may still be unclear about the status of the scheme.

When surveyed, almost a third (32%) of UK citizens said they believed the Help to Buy: Equity Loan (England) was still open to new applicants, whereas 41% were unsure.

Higgins said: 'Although Help to Buy isn’t available in Scotland and England, the scheme still offers a valuable route into homeownership in Wales and is available until the end of September 2026. Buyers can secure a new-build property worth up to £300,000 with a 5% deposit, supplemented by a Welsh government equity loan of up to 20%, which remains interest-free for five years.'

How each country is searching:

• In England, searches for Help to Buy averaged 20,925 per month, totalling 251,100 over the year. Help to Buy ended in October 2022 in England.
• In Scotland, the average monthly search volume was 810, totalling 9,720. The scheme closed to new applicants in February 2021.
• In Wales, the only UK country where Help to Buy is still live, the scheme was searched for 668 times per month on average, totalling 8,020 across 12 months.

Some of these searches may also be attributed to interest in the government-backed Help to Buy ISA. Although this scheme also closed to new applicants in 2019, existing savers can still use their funds and access the government bonus.

‘The scheme was replaced with Lifetime ISAs however this is also currently under review in its current format with the government looking at a simpler saving scheme’ says Higgins.

 

MYTH #2: Buying a home requires a 20% or higher deposit

The minimum deposit required to buy a home in the UK is typically 5%, but the exact amount depends on individual circumstances. We asked Brits how much they believe they need to save before they’re able to buy a house in the UK.

Almost one in six (15%) believe they need to save at least 20% or more for a deposit in order to buy a house, while 11% are not sure how much they need at all. Saving a larger deposit is the popular choice for many people, as it can unlock better mortgage rates, but the survey reveals some Brits are unaware that buying a home with a 5% deposit is achievable.

Key data findings:

• Only 22% said that 5-9% would be enough for a house deposit
• 36% thought they would need to save at least 10-14%
• 11% of respondents were unsure of how much deposit is required to buy a new home in the UK

‘Although 100% mortgages are available, a minimum deposit of 5% is typically needed to secure a mortgage.

‘On a £300,000 property, that's £15,000 instead of £60,000, for a 20% deposit. Equity loan schemes can allow first time buyers to purchase with a 5% deposit. The equity loan covers a percentage of the property's value, reducing the mortgage needed and helping to make homeownership more accessible.

‘15% of survey respondents may think they need to save £54,000 or more before buying a home at an average price of £270,000. This isn’t always the case, and this misconception can discourage buyers who are otherwise ready to purchase a home.’ says Higgins.

 

MYTH #3: Shared ownership is only for first time buyers

Almost two-fifths (37%) of respondents believe shared ownership is exclusively available to first-time buyers, and 28% were not sure to whom the scheme is available. 35% correctly identified that it can also be available to all homebuyers who meet the criteria.

The search data

• Shared ownership attracts 40,500 monthly searches, compared to just 12,100 for rent-to-buy schemes

‘Shared ownership is available to anyone who meets the income and affordability criteria, not just first-time buyers. While it allows buyers to purchase a share of a home with a smaller deposit, it’s important to know that shared ownership also involves ongoing rent payments on the portion you don’t own. Buyers should compare all available schemes before deciding’, says Higgins.

 

MYTH #4: Equity loans work just like mortgages

Many buyers may assume equity loans function the same as traditional mortgages, and search behaviour suggests ongoing confusion about the differences. Understanding the distinction can help buyers make more informed decisions, especially with schemes like Rezide, which support buyers in purchasing a new home with a 5% deposit and a 15% equity loan. This structure means buyers only need an 80% mortgage, with the equity loan offering greater repayment certainty through a fixed interest rate.

The search data

• ‘Equity loan vs mortgage’ 67% increase over the past 3 months, and had a 150% increase year-on-year.

‘With a mortgage, you borrow money and pay it back with interest in monthly payments. With an equity loan, the lender takes a percentage stake in your property. You don't make monthly payments on the equity portion, and there's no interest accruing. When the property is sold or remortgaged, the equity loan is repaid as the same percentage of the property’s value at that point.’

‘For example, if a buyer receives a 20% equity loan on a £300,000 home (£60,000) and later sells the property for £400,000, the lender will receive 20% of the sale value (£80,000).’

‘This structure reduces your monthly mortgage costs compared to borrowing the full 95%’, says Higgins.

 

MYTH #5: Equity loan schemes are available for all types of properties

 

Most equity loan schemes in the UK only apply to new build homes. This can cause confusion for potential buyers who are unaware of this.

The search data

• Searches for ‘How do equity loans work’ increased by 24% over the past year.

‘One common area of confusion is understanding which house buying schemes work with new builds versus existing properties. This matters because it determines which schemes may be available to you as a buyer,’ says Higgins.

‘England’s Help to Buy Equity Loan scheme was restricted to new builds, and many current equity loan schemes maintain this focus. While this may narrow the options for some buyers, new build homes often come with modern construction standards, a 10-year NHBC warranty and higher energy performance certificates, which may contribute to lower running costs.’

Understanding your options in 2026

If you’re considering buying a new home, learning more about how schemes like Rezide or Part Exchange operate in today’s market can help you understand your options following the closure of Help to Buy.

Methodology

David Wilson Homes surveyed 1,000 UK adults using OnePulse. Respondents were asked about their understanding of homebuying schemes, deposit requirements and eligibility criteria.

This was supported by Google search data analysis over the past 12 months to identify the most searched homebuying terms, including legacy schemes such as Help to Buy, shared ownership and equity loans. Monthly average search volumes were used to assess the scale of ongoing interest and confusion around schemes that have changed or ended.

Terry Higgins, Group MD TNHG Mortgage Services, was then consulted to interpret the findings, debunk common myths and explain how today’s homebuying options work in practice.