Help to Buy: Equity Loan (2021-2023)

Help to Buy is a government scheme designed to help first time buyers who have never owned a property before to advance up the property ladder.

Who is eligible?

Help to Buy: Equity Loan (2021-2023) are available to first time buyers. The home you want to buy must be newly built with a price of up to £407,400 for the East of England (see the Help to Buy site for more regional caps)

How does it work?

With a Help to Buy equity loan the Government lends you up to 20% of the cost of your newly built home, so you’ll only need a 5% cash deposit and a 75% mortgage to make up the rest.

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.

When getting a mortgage you will be able to borrow up to a maximum of 4.5 times your salary.

Help to Buy Equity Loan example

How do I pay back the Help to Buy equity loan?

You must pay back the loan after 25 years or when you sell your home - whichever comes first.

You will not be charged any interest on the 20% loan for the first five years of owning your home.

However a management fee of £1 a month will be applicable from the date of purchase for the duration of the equity loan.

From year six, a fee of 1.75% is payable on the equity loan, which rises annually by CPI (Consumer Price Index) inflation plus 2%.

For full information about the scheme, please visit helptobuy.gov.uk