Help to Buy was launched by the government in April 2013 to support and drive purchases of New Build Homes. The main aim of it is to improve the access to and affordability of mortgages – specifically for those people who cannot afford a large deposit.

This scheme has recently been extended out to 2020, so should be available to even more prospective purchasers.



The Government will lend you up to 20% of the value of your new property through an equity loan, which will be interest-free for the first five years and can be repaid at any time or on the sale of your home. Customers will only need a minimum 5% deposit to qualify. Help to Buy is available to all purchasers, not just first-time buyers. The scheme is available from 1 April 2013 on all new build homes in England up to the value of £600,000. There is no household annual income limit, but it is only available on new build properties and customers will only need to secure up to a 75% through a traditional mortgage.



The Government will lend up to 20% of the value of a new build home through an equity loan which must be used as a deposit to purchase the property. In addition to this the buyer must contribute at least a 5% deposit (although they can contribute more). The buyer must then secure a mortgage for the remaining balance from a participating lender. Again one of our specialists will help you identify which provider will work best for your circumstances.



The equity loan will be available to all purchasers of newly built homes, not just first time buyers, although it is restricted to a maximum property value of £600,000. All purchasers will also be subject to a Housing & Communities Agency (HCA) affordability check.




The government equity loan is interest free for the first five years after which a fee of 1.75% will be charged from year six, rising annually by RPI inflation plus 1%. The equity loan can be repaid at any time within the term of the mortgage. This can be done via savings, raising capital against the property (re-mortgaging) or on sale of the property.  At this point the property will be revalued and you will repay the same percentage as your initial equity loan (i.e. 20%) but this will be of the future house value. Therefore you could repay more than you initially borrowed on day 1.