Help to Buy Equity Loan scheme

Top up your deposit with an equity loan

With a Help to Buy Equity Loan, you can add to your deposit on a new-build property, whether you’re a first-time buyer or moving home.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Buying your home with an equity loan

An equity loan enables you to apply to borrow a lower  mortgage amount, which means you’ll be able to choose from a wider range of mortgage deals.

Only a 5% deposit needed

You put up at least 5% of the property purchase price, although you can provide a higher amount.

Apply for an equity loan

The government provides up to 20% of the purchase price (15% in Scotland)

Buying in London?

You could borrow up to 40% of your property purchase price from the government with London Help to Buy.

Apply for a mortgage

Your mortgage amount covers the rest of the property price.

Are you eligible?

You can apply through the Help to Buy Equity Loan scheme if

  • You’re 18 or older and buying a new-build property that you’ll be living in as your main home
  • You don’t own another property
  • You can provide a deposit of at least 5% of the property’s value

Any mortgage you apply for is subject to status and availability.

How it works

Equity loan fees

There aren’t any borrowing fees or interest on the equity loan for the first 5 years after you buy your home, although you can start repaying the loan whenever you want to.

After 5 years, there will be an interest fee of 1.75% of the amount of your loan at the time you took it out, which will rise each year after that by the increase in the Retail Price Index. Your Help to Buy agent can explain this in more detail.

Repaying the loan amount

The charges you pay for the loan don’t reduce the loan amount you need to repay. You can start repaying the loan as soon as you want to reduce the government’s share in your home’s equity. The minimum repayment is 10% of the market value at the time you pay (or 5% in Scotland). The equity loan must be repaid when the property is sold or when the mortgage is paid off.

What to do next

You first need to contact your local Help to Buy agent to find a registered home builder. You then apply to the same agent for an equity loan of up to 20% of the property’s value (15% in Scotland). If you’re successful, you can add this money to your 5% deposit and apply for a mortgage for the amount you need to buy your home.

Equity loan details where you live

Home ownership schemes vary depending on where you live. The property value limits and other information about equity loans for your area are below. There is currently no equity loan scheme in Northern Ireland.

Equity loans in London

Find a newly built home available through London Help to Buy.

London equity loans

Equity loans in Scotland

Find a newly built home available through Scotland Help to Buy.

Scotland equity loans

Equity loans in Wales

Find a newly built home available through Help to Buy Wales.

Wales equity loans

Our current rates

This table shows what the initial interest rate will be, as well as the follow-on rate, the amount you can borrow and any application and early repayment charges. You can sort any of the columns by selecting the column title.

You can save a copy of our tariff of mortgage charges and read our important legal information.

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How to apply

After you’ve contacted your local Help to Buy agent to arrange your equity loan, you’ll need to speak to one of our mortgage advisers to start your mortgage application.

Call us

Call us1 today. Lines are open all day, every day – except during the Christmas period, when they may be closed at off-peak times.

0800 197 1081

Visit a branch

Find a branch near you that offers appointments with mortgage advisers and see when we’re open.

More ways to buy your home

Family Springboard Mortgage

Buy your home without a borrower deposit

Buy a home without a borrower deposit if your family or loved ones can provide 10% of the property’s price as security.

Shared ownership

Buy a share of a home and pay rent on the rest

Buying a home through shared ownership means you can apply for a smaller mortgage amount – so your deposit could be lower, too.

Joint mortgages

Buying property with other people

Buying with your partner, family or friends can make sense, so long as you weigh up the benefits and risks of taking out a joint mortgage with others.

Need some help?

You can talk to us about our mortgages online, in branch or by phone at a time that suits you.

Talk to us online

Start a web chat if you’d like to ask us a question online.

Call us

Call us1 today. Lines are open all day, every day – except during the Christmas period, when they may be closed at off-peak times.

0800 197 1081

Visit a branch

Contact a branch that offers appointments with one of our expert mortgage advisers.