Low cost home ownership

Help to Buy: equity loans

Read more about Help to Buy

Equity loans through the Help to Buy scheme are open to both first-time buyers and home movers on newly built homes developed with a participating, registered builder in England.  Homes can have a purchase price of up to £600,000. 

With an equity loan a household will need to:

  • contribute at least 5% of the property price as a deposit
  • receive a loan from the government for up to 20% of the purchase price
  • obtain a mortgage of up to 75% to cover the rest of the cost

A household will not be charged loan fees on the loans from the government for the first five years of owning the home. In the sixth year the household will be charged a fee of 1.75% of the loan’s value. After this the fee will increase each year. The increase will be worked out using the Retail Price Index.

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