Want to buy a place of your own sooner rather than later?

With the Help to Buy: Equity Loan, subject to eligibility, terms and conditions it’s easier than ever.

We know it can be a little confusing, that's why we've answered some of the most common questions in our frequently asked questions below.

Download our guide
Homes to Buy lifestyle (24).jpg

Examples of Help to Buy

• You just need to save for a 5% deposit.
• The government lends you 20% as a 5-year interest free equity loan.
• This means you'll only need a 75% mortgage.
• Making you much more attractive to lenders.
• You can find your Help to Buy agent here.


Help to Buy FAQs

Help to Buy is an equity loan which helps people purchase a brand new home with a much smaller deposit.

With Help to Buy you only need a 5% deposit and the government gives you 20% as an equity loan. This means your mortgage is only 75%, giving you access to a wider range of lenders.

Only first-time buyers can benefit from the Help to Buy: Equity Loan scheme and you must be a UK resident and meet the affordability criteria.

The affordability criteria is typically 4.5 times your combined gross income, minus the cost of any credit commitments (i.e. car payments or loan repayments).

For example, if you're purchasing as a couple with a combined gross salary of £45,000 and you have a car finance obligation of £149 per month, this is deducted from your income.

Financial commitments: £149 x 12 months = £1,788

Net combined income: £45,000 - £1,788 = £43,212

Mortgage limit: £43,212 x 4.5 = £194,454

Using this figure, the values are broken down as:

75% Mortgage: £194,454

20% Help to Buy loan: £51,854.40

5% Deposit: £12,963.60

This means that using the above example the couple could afford a house up to £259,272*

Absolutely, the idea behind Help to Buy is to help people onto the property ladder. Like any traditional mortgage, the goal for many buyers is to eventually pay off the mortgage on a property and own 100% of their home.

For the first 5 years of having the Help to Buy: Equity Loan there will be no interest to pay. After the first 5 years, you will only pay the interest of 1.75% of the loan amount at the time of purchase. This percentage will rise in line with RPI (Retail Price Index) every 12 months.

For the duration of the loan there will be a small £1/month management fee.

The Help to Buy: Equity Loan is great because you only pay back what the value of that equity is worth. So if for instance your house value drops, so does the amount you pay back. The loan effectively scales meaning that if your house increases in value, remortgaging or selling become viable options to clear the loan. 

Here are the common ways of paying back the loan:

1. Saving to pay off the loan

2. Remortgaging your home once you have built up enough equity in the property

3. Selling your property and using the proceeds of the sale to pay off the balance

Remember, for the first five years, the loan is interest free. Afterwards you pay just the interest on the balance remaining. The loan lasts for 25 years and can be paid back in full or in part as early as you like, so long as each payment is at least 50% of the remaining balance.

Important: You will need to pay back the equity loan when you sell your home, pay off your repayment mortgage or reach the end of the equity loan term. If you breach the terms of the equity loan, you could be asked to repay in full.

No, Help to Buy can only be used for a single property.

Help to buy only applies to brand new properties on building developments throughout England. However, price thresholds apply depending on your region.


Price Cap

South West


South East




East of England


West Midlands


East Midlands


Yorkshire and The Humber


North West


North East


You will need to find your Help to Buy agent, which you can do on HM Government website here.

Most of our developments offer Help to Buy and our sales teams can also provide information about the scheme.

Your dream home could be closer than you think. 

Explore our developments >

No, it's not.

The Help to Buy: Equity Loan is a 20% loan provided to you by the government which is to be paid back. It can be used in conjunction with the Help to Buy: ISA which is a savings scheme that essentially gives you an additional 25% on top of your deposit. Find out more about the Help to Buy: ISA by visiting the government's website.

The Equity Loan cannot be used with Help to Buy: Shared Ownership. This is a different scheme whereby you mortgage a portion of your property and pay rent on the rest. This is great for people who cannot afford the full purchase price of their home straight away. You can find out more details by visiting the government's website.

More information about Help to Buy can be found on the official government website here. 

*Examples are for illustration purposes only.