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.
Use the Help to Buy calculator to work out what monthly payments are affordable for you.
If you’re a first-time buyer in England, you can apply for a Help to Buy: Equity Loan. This is a loan from the government that you put towards the cost of buying a newly built home. You can borrow a minimum of 5% and up to a maximum of 20% (40% in London) of the full purchase price of a new-build home.
You must buy your home from a homebuilder registered for Help to Buy: Equity Loan. The amount you pay for a home depends on where in England you buy it.
The equity loan, the deposit you have saved, and your repayment mortgage cover the total cost of buying your newly built home. The percentage you borrow is based on the market value of your home when you buy it. You do not pay interest on the equity loan for the first 5 years. You start to pay interest in year 6, on the equity loan amount you borrowed.The equity loan payments are interest only, so you do not reduce the amount you owe.
You can repay all or part of your equity loan at any time. A part payment must be at least 10% of what your home is worth at the time of repayment.
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, and use the Help to Buy deposit calculator to see how it affects your monthly payments.
| Region | Price 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 – 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. Use the Help to Buy calculator to see how your deposit and the equity loan affects your mortgage repayments.
To be eligible for the Help to Buy Wales scheme, you must:
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. Use the Help to Buy calculator to see how a 40% equity loan will affect your monthly payments.
| 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 |
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.
¹Help to Buy England
²Help to Buy London
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:
For full terms and conditions please click here.
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