Help to Buy: Equity Loan

What is a 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 build 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:

Help to Buy: Equity Loan in England - 
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 

 

Inside  London:

Help to Buy: Equity Loan in England  
inside 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. 

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