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 Equity Loan 


How does it work?

With a Help to Buy Equity Loan the government will lend you up to 20% of the cost of your newly built home, so you'll only need a 5% cash deposit and a 75% mortgage to make up the rest.

You won't be charged loan fees on the 20% loan for the first five years of owning your home.

Example: for a home with a £200,000 price tag:




If the home in the example above sold for £210,000, you'd get £168,000 (80%, from your mortgage and the cash deposit) and you'd pay back £42,000 on the loan (20%). You'd need to pay off your mortgage with your share of the money.

For more information, (including advice on fees and paying back your loan) please download our Help to Buy Buyers Guide (PDF).


London Help to Buy

To reflect the current property prices in London, from February 2016 the government is increasing the upper limit for the equity loan it gives new home-buyers within Greater London from 20% to 40%.

If you are looking to buy a new home in a London borough, find out more about London Help to Buy.


Who is eligible?

Equity loans are available to first time buyers as well as homeowners looking to move. The home you want to buy must be newly built with a price tag of up to £600,000.

You won't be able to sublet this home or enter a part exchange deal on your old home. You must not own any other property at the time you buy your new home with a Help to Buy Equity Loan.

This scheme is available in England only.



 

Other Help to Buy Scheme Options:



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