Help to Buy Equity Loan

Phil & Lauren Wright outside thier new home thanks to Help to Buy.

Help to Buy - Equity Loan is designed to help you buy a newly built home from a participating registered developer, whether you are a first time buyer or an existing homeowner. Unlike previous schemes, there is no upper income cap for buyers.

The Government will give you an equity loan of between 10% - 20% of the value of your property to help you buy. There is no interest to pay on this loan for the first five years.

The equity loan will be a second charge on your property and will represent a percentage of the value of your property. So when you pay back the loan, you will pay it back as a percentage of the current market value of your home. For example:


Help to Buy allows you to buy your home with a 5% deposit.


Your loan must be paid back either when you sell your property or at the end of 25 years, whichever is sooner.

You will need a conventional mortgage from a qualified lending institution and a minimum deposit of 5% (subject to lender requirements). Don’t forget that you will also need enough money to pay for your legal fees, costs of moving, and stamp duty (where applicable).

Your Help to Buy - Equity Loan home must be your main residence – you cannot use this scheme for Buy to Let.

How do I find a Help to Buy - Equity Loan property?

Help to Buy - Equity Loan properties are available from participating registered developers. Properties up to a value of £600,000 can be included in the scheme. You can find details of registered developers offering Help to Buy - Equity Loans in our operating areas here Finding Help to Buy Equity Loan properties

How do I apply for Help to Buy Equity Loan?

You do not need to complete the Help to Buy Midlands application form if you are only interested in applying for Help to Buy - Equity Loan. Once you have found a suitable property (newly built from a participating registered developer), you will need to follow these steps:

At present part exchange is not available on the Help to Buy - Equity Loan scheme. Your Help to Buy - Equity Loan property must be your only property by the time of purchaser legal completion.

I am a developer wishing to register for Help to Buy Equity Loan funding

Homes and Comunities Agency's logo linking you to the HCA website on Help to Buy If you are not already signed up for funding, you can find the registration document and submission forms at

Developers can contact the HCA regarding Help to Buy at Please note this e-mail address is only for developers with queries relating to Help to Buy Equity Loan, not for general enquiries.

For guidance on developer participation please read this report.

Help to Buy Mortgage Guarantee scheme

The Mortgage Gurantee scheme where lenders pay 95%. The Help to Buy Mortgage Guarantee Scheme will be available from 07 October 2013. The scheme will not be administered by Help to Buy Agents but you can find out more at the HM Treasury website:

Help to Buy - Equity Loan                                                                                       

Please click here for: Help to Buy: Equity Loan and Mortgage Guarantee scheme guidance [pdf] 531KB

Information about getting a mortgage

In addition to going to an Independent Financial Advisor, applicants can seek information from the Money Advice Service. Click here.