We're operating as normal through the UK Lockdown! - Book your appointment or virtual appointment today. Find out more

Help to Buy: Equity Loan (2021-2023)

Help to Buy: Equity Loan is a Government-backed scheme that lets first time buyers purchase a new home with just 5% deposit.

Providing you’re eligible¹, the Government will provide an equity loan of up to 20% of the cost of your new-build home (or 40% in London), interest-free for the first five years. This means you’ll only need a 5% deposit and 75% mortgage to make up the rest.

 

help to buy uk graphic

Using Help to Buy in your area

The costs involved with Help to Buy will change slightly depending on where in the country you plan to move to. Take a look at the regional price caps below so you can get a better idea of what’s possible.

RegionPrice cap
East Midlands£261,900
West Midlands£255,600
South West£349,000
Wales³£250,000
North West£224,400
South East£437,600
London²£600,000
Help to Buy regional cap map

Help to Buy Wales

Help to Buy – Wales provides a shared equity loan to buyers of new-build homes. The scheme supports the purchase of homes up to £250,000 bought through a registered Help to Buy – Wales builder. Here’s how it works:

With Help to Buy – Wales: You must provide a 5% deposit. The scheme provides a shared equity loan of up to 20% of the purchase price. You must take out a repayment mortgage to cover the remaining amount.

To be eligible for the Help to Buy Wales scheme, you must:

  • Be buying an eligible home, with a maximum price of £250,000 from a builder who is registered with the scheme.
  • Be able to fund at least 80% of the property price through a combination of a repayment mortgage and a minimum deposit of 5% of the purchase price.
  • Take out a first charge repayment mortgage with a qualifying lender.
  • Not sub-let any part of the house you are buying through the scheme.
  • Not be renting your existing home and buying a 2nd home through the scheme

Help to Buy London

The amount you can receive with a Government-backed equity loan is different in London² compared to the rest of the UK. Here this will be 40% of the cost of your new-build home, interest-free for the first five years, meaning you’ll need a 5% cash deposit and 55% mortgage to make up the rest.

Help to Buy London Breakdown
See our example below on a £500,000 home:
5% deposit£25,000
40% Help to Buy Equity Loan£200,000
55% mortgage£275,000

Ready to learn more?

Get in touch with our sales team. They’re here to answer any questions you may have about Help To Buy and help you find the perfect home.

Terms and Conditions

¹Help to Buy England

  • The 20% equity loan is interest free for the first five years of owning your home.
  • 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.

²Help to Buy London

  • The 40% equity loan is interest free for the first five years of owning your home.
  • It is available on new homes in the 32 London Boroughs & City of London.
  • 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.

³Help to Buy Wales

With Help to Buy Wales you must provide a 5% deposit. This is interest free for the first five years of owning your home. The scheme provides a shared equity loan of up to 20% of the purchase price. You must take out a repayment mortgage to cover the remaining amount.

To be eligible for the Help to Buy Wales scheme, you must:

  • Be buying an eligible home, with a maximum price of £300,000 from a builder who is registered with the scheme.
  • Be able to fund at least 80% of the property price through a combination of a repayment mortgage and a minimum deposit of 5% of the purchase price.
  • Take out a first charge repayment mortgage with a qualifying lender.
  • Not sublet any part of the house you are buying through the scheme.
  • Not be renting your existing home and buying a 2nd home through the scheme.

For full terms and conditions please click here.

Start your search...
Ways To Buy
NHBC logo
Considerate Constructors logo
Safemark_Logo_Mono
In House Gold Award 2021 Logo

Hey there, couldn’t help noticing you’re using Internet Explorer

That’s great and all, and we commend you for pushing through with it. Unfortunately we no longer offer support for IE; it hasn’t received a major update since 2015 and Microsoft are dropping support for it later in the year.

If you’re using Windows 10 and want to stick with a built in browser, please consider switching to Edge. Or, if you really want to enjoy the internet properly we strongly recommend downloading Google Chrome here.