The official Government Help to Buy website
Some homebuyers will have more time to buy their home if they reserved it by 30 June 2020. They must have experienced severe delays with their purchase due to COVID-19. To find out more go to Help to Buy: Equity Loan customers during Coronavirus (COVID-19).
A new Help to Buy: Equity Loan scheme open to first-time buyers only will be available for two-years from 1 April 2021. The Help to Buy scheme will end on 31 March 2023. Find out more at about Help to Buy scheme 2021-2023.
With a Help to Buy: Equity Loan the government lends you up to 20% (40% if you’re in London) of the cost of your newly built home.
You pay a deposit of 5% or more and arrange a mortgage of 25% or more to make up the rest.
You won’t be charged interest on the 20% loan for the first five years of owning your home.
Example: for a home with a £200,000 price tag
Example: for a home in London with a £400,000 price tag
You only need to repay the equity loan in full when you:
But you can choose to pay off your equity loan any time, in full or in 10% chunks before the end of the loan period.
The amount you borrow is a percentage of the value of your new home. And the amount you pay back is the same percentage of the value of your home.
This means, if the value of your home rises, so does the amount you owe on your equity loan. It works both ways, so if the value of your home falls, the amount you owe on your loan falls too.
For more information, including advice on fees and paying back your loan, please download our Help to Buy buyers’ guide.