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