Help to Buy

how to buy deposit, loan and lender

How does it work?

With a Help to Buy: equity loan the Government lends you up to 20% of the cost of your new-build 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 left 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: equity loan buyers' guide (PDF, 309kB)


how to buy deposit, loan and lender

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. The Scottish Government, Welsh Government and Northern Ireland Housing Executive run similar schemes - check out their websites.


how to buy deposit, loan and lender

How to Apply

The Help to Buy: equity loan scheme is run by Government-appointed Help to Buy agents. They can guide you through your purchase, from providing general information about the scheme to dealing with your application.

Or look out for the Help to Buy logo on new-build developments.

If the home in the example left 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: equity loan buyers' guide (PDF, 309kB)


how to buy deposit, loan and lender

Find your local Help to Buy agent

Your local Help to Buy agent can guide you through the options available and explain the eligibility and affordability criteria. Help to Buy agents are appointed by the Government’s Homes and Communities Agency.

Help to Buy agents administer the Help to Buy: equity loan scheme but not the mortgage guarantee scheme. They have the authority to give the go-ahead for you to purchase a home with help from the equity loan scheme.

For Radian covering Berkshire and Oxfordshire:

www.helptobuysouth.co.uk
0845 604 11 22
Email info@helptobuysouth.co.uk

BPHA covering Buckinghamshire and Surrey:

www.helptobuyeastandsoutheast.uk.com
03333 214044
Email helptobuyeastandsoutheast@bpha.org.uk