Help to Buy
What is Help to Buy?

Help to Buy: Equity loan is a Government-backed scheme to help first time buyers get on the property ladder by loaning them up to 20% of the cost of a brand new home (up to 40% for homes in London boroughs). The loan is interest-free for the first five years.Until the end of March 2021, the scheme was open to all buyers purchasing a home up to £600,000.

However, the re-launched scheme, which runs until 31 March 2023, is only open to first time buyers (if buying jointly, both must be first time buyers) and the maximum permitted cost of the new home must be no more than 1.5 times the regional first time buyer price. This ranges from £186,100 in the North East and £224,400 in the North West to £437,600 in the South East and £600,000 in London. 

Get to know Help to Buy
Help to Buy Regional Price Caps
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Paying back your Help to Buy: Equity Loan
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Help to Buy FAQs
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Show me how it works

As you can see:

You can borrow an equity loan from a minimum of 5% and a maximum of 20% (40% in London) of the full market value of a new build home.  

So here if you are purchasing a home worth £200,000

You provide a 5% deposit - £10,000

You have a 20% equity loan - £40,000

You get a 75% mortgage from the lender of - £150,000