Buying a low-cost home

Help to Buy

Help to Buy: Equity Loan

With a Help to Buy equity loan, you can get a low-interest loan from the Government towards your deposit.

To be eligible for Help to Buy: Equity Loan (2021-2023):

  • You must be a first-time buyer
  • The new build home you buy must be within the relevant regional price cap

You and anyone you’re buying a home with must:

  • Not own a home or residential land now or in the past in the UK or abroad
  • Not have had any form of sharia mortgage finance.

The home you buy must not be sub-let or rented out after you buy it.

With an equity loan:

  • You need a 5% deposit
  • The government will lend you up to 20% (up to 40% in London)
  • You need a mortgage of up to 75% for the rest (up to 55% in London)

You must buy your home from a registered Help to Buy builder.

You’ll have to pay equity loan fees, but not for the first 5 years. In the sixth year, you’ll be charged a fee of 1.75% of the loan’s value. The fee then increases every year, according to the Retail Prices Index plus 1%.

You must pay back the loan after 25 years or when you sell your home - whichever comes first. The amount you pay back depends on how much your home is worth (the market value).

Find Help to Buy providers in London