Help to Buy: Equity Loan

What is Help to Buy: Equity Loan?

Help to Buy: Equity Loan is a government scheme that allows you to borrow a low-interest loan to put towards the cost of purchasing a newly built home.

Separate schemes are available in England, Wales, Scotland and Ireland. This information is about how the scheme works for homes bought in England.

Your property must be purchased from a house builder registered for the Help to Buy: Equity Loan scheme. 

The equity loan is for the value of up to 20% of the purchase price for homes that are outside of London. For homes inside London, the equity loan is up to 40% of the purchase price.

You add the equity loan to the deposit you have saved and to the amount you need to borrow on a repayment mortgage. Together these cover the total cost of buying your newly built home.

Please remember, your home may be repossessed if you do not keep up repayments on your mortgage or other loans secured against it. 

These examples show the percentages and values you might be able to borrow, based on your circumstances, the value of your new home and its location:

Outside London
New home market value   £200,000
Buyer's repayment mortgage 75% £150,000
Buyer's deposit 5% £10,000
Help to Buy: Equity Loan 20% £40,000
Outside London
New home market value   £400,000
Buyer's repayment mortgage 55% £220,000
Buyer's deposit 5% £20,000
Help to Buy: Equity Loan 40% £160,000


Who can apply for a Help to Buy: Equity Loan?

You will need to meet the eligibility criteria in order to receive a Help to Buy: Equity Loan.