The new Help to Buy Equity Loan


The Help to Buy Equity Loan: here’s what you need to know

Are you considering using the Help to Buy Equity Loan scheme to buy your first home? Here are the essential things you need to know.

The latest government Help to Buy scheme started in April 2021 and runs until March 2023.

help to buy

What are Help to Buy Equity Loans?

Launched by the government in 2013, Help to Buy Equity Loans are aimed at helping those who are struggling to get on the property ladder.

In a nutshell, with the Help to Buy Equity Loan scheme:

  • The government will lend you up to 20% of the cost of a new build home. This increases to up to 40% of the cost if the property is in London. This is called an equity loan.
  • You’ll need to save a minimum of 5% of the purchase price as a deposit, and you can use contributions from your Help to Buy ISA or Lifetime ISA to pay this. The remaining 75% comes from a specialist Help to Buy mortgage product.
  • As you’ll have a larger deposit, you won’t need to raise as much of a mortgage. This means your initial mortgage payments will be lower. It should also help with affordability calculations when you apply for your mortgage.
  • The equity loan is interest-free for the first five years and you don’t need to make any repayments on it during that time.
  • The latest scheme is only open to first-time buyers.
  • It’s only available on new build homes
  • Regional price caps apply - see the box below. 


Price Cap

South West


West Midlands




South East


East of England


East Midlands


Yorkshire & The Humber


North West


North East


 help to buy breakdown

What are my other options?

While Help to Buy has been popular with first-time buyers, it’s not the only route available if you have a small deposit.

  • Shared Ownership: Also known as ‘part-buy, part-rent’, this scheme allows you to buy a share of a property and pay rent on the rest. And as you'll only need a mortgage for the share you’re purchasing, you'll need a much smaller deposit than if you were buying the home outright
  • Guarantor mortgages: This is when a parent or close family member uses their own property or savings as security against your loan. This means lenders may accept a smaller deposit than usual and sometimes they won’t require any deposit at all

For more information about the Help to Buy Equity Loan you can book an appointment to speak with one of our Mortgage Advisers. 

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