What is Help to Buy: Equity Loan?

The new Help to Buy: Equity Loan scheme was launched on 1 April 2021.

The new scheme will run until March 2023. As with the previous scheme, the government will lend homebuyers up to 20% of the cost of a newly built home, and up to 40% in London.

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

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

You do not pay interest on the equity loan for the first 5 years. You start to pay interest in year 6, on the equity loan amount you borrowed.


See example below for a home with a £400,000 price tag;


Who is eligible?

The Help to Buy:Equity Loan is for first-time buyers and includes regional property price limits to ensure the scheme reaches people who need it most. For more information regarding the regional caps please click here.

You won’t be able to sublet this home or enter a part exchange deal on your old home.

*Content taken from www.helptobuy.gov.uk

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