Help to Buy Scheme

If you’re just starting out with your own place, find out more about this popular government-backed scheme and take your first step onto the property ladder.

Equity loan 2021-2023

Help to Buy is for first time buyers like you, who have found their dream home but can’t afford the full deposit.

This scheme will help you get onto the property ladder, with the government lending you up to 20% of the purchase price of a new build home. You will need to secure a mortgage for 75% of the value of the house with the remaining 20% funded by the government equity loan.

How it works

Your government loan is interest free for the first five years of owning your new home.

From year six, you will pay monthly interest starting at 1.75% which will increase every April. You must repay your loan after 25 years, or earlier if you sell your home.

Here’s what you need to know:

  • You must be a first-time buyer

  • You already have your 5% deposit

  • You are able to secure a mortgage for 75% of the value of your home (we can help you choose a mortgage adviser to make sure your purchase runs smoothly)

  • You can afford the monthly mortgage payments

  • The home you buy under the scheme is your only residence

  • You are not a buy-to-let investor

  • The new build home you buy must be within the relevant regional price cap of £186,100 for the North East and £228,100 for Yorkshire and the Humber.

Here’s an example of how much your deposit, equity loan and mortgage may be if you buy a new home for £200,000:

  • 5% deposit of £10,000
  • 20% equity loan of £40,000
  • 75% mortgage of £150,000.

Visit the government’s website for full details