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You can get a low-interest loan towards your deposit. This is called an equity loan.

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Eligibility

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The home you buy must:

• be a new build from a developer who is part of the HTB scheme.

• the maximum purchase price of the house depends on where you are buying your house.

  • North East £186,100

  • North West £224,400

  • Yorkshire and the Humber £228,100

  • East Midlands £261,900

  • West Midlands £255,600

  • East of England £407,400

  • London £600,000

  • South East £437,600

  • South West £349,000

• be the only one you own

• not be sub-let or rented out after you buy it

• be one that you can show you cannot afford (if you’re applying in Wales).

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How it works

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With an equity loan:

• you need a minimum of 5% deposit

• the government will lend you up to 20% of the purchase price (up to 40% in London)

• you need a mortgage of up to 75% for the rest (up to 55% in London)

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You must buy your home from a registered Help to Buy builder, we can provide you with a list.

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Equity loan fees

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You will not have to pay any interest on the equity loan for the first five years.

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In the sixth year, you'll be charged monthly interest of 1.75% pa of the equity loans value. The fee then increases every year, according to the Retail Prices Index plus 1%. Your Help to Buy agent will contact you to set up these monthly fee payments. You’ll also get a statement about your loan each year.

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You will only repay interest and the value of the equity loan will not reduce. You will have opportunities to repay the equity loan, please discuss this with your adviser.

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Paying back the loan

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You must pay back the loan after 25 years or when you sell your home - whichever comes first. The amount you pay back depends on how much your home is worth (the market value).

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​For example: If you purchase a property for £200,000 and you apply for the maximum 20%, your initial equity loan will be £40,000. If you then sell the property in the future for £300,000 you would pay back 20% of the future value so £60,000. The future purchase price will be determined by a RCIS qualified surveyor.

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You can pay back part or all of your loan at any time. The smallest repayment you can make is 10% of the market value of your home.