Help to Buy: Equity Loan


What is a Help to Buy: Equity Loan?

 Help to Buy: Equity Loan is a government scheme for first-time buyer. 

If you're eligible for an equity loan, you can borrow between 5% and 20% (up 40% if you're in London) of the market value of a new build

You can only apply for an equity loan if you reserve a new build from any of the homebuilders registered with the Help to Buy scheme (registered homebuilders)

The amount you pay for a home depends on where in England you buy it.

Help to Buy (2021-2023) ends on 31 March 2023. Find out more about when the scheme is closing to new applications in our FAQs.

Help to Buy: Equity Loan price limits- April 2021 to March 2023


Maximum property price 

North East 


North West 


Yorkshire and the Humber 


East Midlands 


West Midlands 


East of England 




South East 


South West 


The maximum property price is the full purchase price. You cannot change or negotiate this price.

Your homebuilder will be able to confirm if the home you want to buy is within the price limits.


The equity loan, the deposit you have saved, and your repayment mortgage cover the total cost of buying your newly built home.

You can repay all or part of your equity loan at any time. Any part payment you choose to make must be at least 10% of the market value of your home at the time you choose to repay. Part payments will reduce the amount you owe on the equity loan.

 You must repay your equity loan in full:

  • at the end of the equity loan term
  • when you pay off your repayment mortgage
  • when you sell your home
  • if you do not comply with the terms set out in the equity loan contract and we ask you to repay the loan in full.

No interest is charged on the equity loan for the first 5 years. You will start to pay interest from year 6. 

The interest you pay does not go towards repaying the equity loan. You cannot pay monthly equity loan repayments to reduce the amount of equity loan you have borrowed.

Your equity loan is secured against your home by a legal charge in a similar way to a repayment mortgage.

Help to Buy: Equity Loan is exempt from regulation by the Financial Conduct Authority.

How much can I borrow?

You may pay back more than you borrow

The percentage you borrow is based on the market value of your new home when you buy it.

When you repay your loan in full or in part, the amount you pay back is worked out as a percentage of the market value of your home, 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.

Your home may be repossessed if you do not keep up repayments on your repayment mortgage, equity loan or other loans secured against it. Consider seeking independent financial advice before making any financial decisions.


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

You will need to meet the eligibility criteria to borrow a Help to Buy: Equity Loan.

To be eligible for an equity loan you must be a first-time buyer and buying a new build. You and anyone you're buying a home with must:

  • not own, or have ever owned, a home or residential land, now or in the past, in the UK or abroad


  • not have had any form of Sharia mortgage