The official Government Help to Buy website
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.
|East of England||£407,400|
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.
Example: for a home with a £200,000 price tag
When deciding if an equity loan is right for you, it’s important to consider the full cost of your borrowing:
When you take out your equity loan, you agree to repay it in full, plus interest and management fees.
The amount you pay back is worked out as a percentage of the market value at the time you choose to repay.
If the market value of your home rises, so does the amount you owe on your equity loan. And if the value of your home falls, the amount you owe on your equity loan falls too.
Please go to our homebuyers’ guide for more information on how to repay your Help to Buy: Equity Loan.