With only a 5% deposit needed - Help to Buy gives you the opportunity to start looking for your dream home today.
What is Help to Buy?
The Help to Buy equity loan is a scheme backed by HM Government. It is exclusively available on new build properties up to £600,000 in the UK.
It is available to both first-time buyers and existing homeowners
You’ll only need a minimum deposit of 5% to purchase your dream home
The government will lend you up to 20% of the value of the new home through an equity loan which can be repaid at any time during the loan term or on the sale of your home
The loan is interest-free for the first 5 years of owning your home
You’ll only need to secure up to a 75% mortgage
There is a range of competitive mortgage rates available
You will own 100% of your home
How Does It Work?
You'll need to have at least a 5% deposit to be eligible for an equity loan.
An equity loan worth up to 20% of the property's value can then be taken out. In effect, the equity loan 'tops up' your deposit – the aim being to give you access to cheaper mortgage rates.
In short, this is how the numbers work:
You put up at least a 5% deposit.
You borrow up to 20% of the value of the property you intend to buy (this is the equity loan).
You apply for a mortgage to cover the remaining cost.
Here's an example.
Let's say you want to buy a new-build home worth £200,000... Using the equity loan scheme you could put down a 5% deposit (£10,000) and take out an equity loan worth 20% (£40,000), so you'd only need to apply for a 75% mortgage (£150,000).
For more information (including advice on fees and paying back your loan)
please see the official Help to Buy Buyers’ Guide.