Help To Buy

With a Help to Buy: equity loan the Government lends you up to 20% of the cost of your new-build home.

CALL US NOW: 020 7510 0902

Equity Loan How does it work?

With a Help to Buy: equity loan the Government lends you up to 20% of the cost of a new or existing home, so you'll only need a 5% cash deposit and a 75% mortgage to make up the rest.

You won't be charged loan fees on the 20% loan for the first five years of owning your home.

For a home with a £200,000 price tag

£10k Buyer's 5% Deposit £40k Government's
20% loan£150kCommercial lender's
75% mortgage
If the home in the example above sold for £210,000, you'd get £168,000 (80%, from your mortgage and the cash deposit) and you'd pay back £42,000 on the loan (20%).

You'd need to pay off your mortgage with your share of the money.

Who is eligible?

Equity loans are available to first time buyers as well as homeowners looking to move. The home you want to buy must be newly built with a price tag of up to £600,000.

You won't be able to sublet this home or enter a part exchange deal on your old home.

You must not own any other property at the time you buy your new home with a Help to Buy equity loan.

This scheme is available in England only.

How to apply

The Help to Buy: equity loan scheme is run by Government-appointed Help to Buy agents. They can guide you through your purchase, from providing general information about the scheme to dealing with your application.

Find Help to Buy Agent

Or look out for the Help to Buy logo on new-build developments and ask about the scheme there. You can get more help and advice from the Money Advice Service and other useful contacts.

Find out more

Mortgage Guarantee Loan How does it work?

A mortgage supported by the Help to Buy mortgage guarantee scheme works in exactly the same way as any other mortgage except that under the scheme the Government offers lenders the option to purchase a guarantee on mortgage loans.

Because of this support, lenders taking part are able to offer home buyers more high-loan-to-value mortgages (80-95%).

You will still be fully responsible for your mortgage repayments. So if you have a 5% deposit, you will need to take out and pay back a 95% mortgage.

For a home with a £200,000 price tag

£10k Buyer's 5% Deposit£30k Lender Covered on next £30k by
by Government Guarantee£190k95% Mortgage from
commercial lender

If the home in the example above sold for £210,000, you'd get £168,000 (80%, from your mortgage and the cash deposit) and you'd pay back £42,000 on the loan (20%).

You'd need to pay off your mortgage with your share of the money.

Who is eligible?

A mortgage under the Help to Buy: mortgage guarantee scheme works like any other mortgage. Your lender will check that you can afford the mortgage and that you do not have a history of payment difficulties.
commercial lender



To qualify for a mortgage supported by Help to Buy mortgage guarantee:



  • A mortgage under the Help to Buy: mortgage guarantee scheme works like any other mortgage. Your lender will check that you can afford the mortgage and that you do not have a history of payment difficulties.
  • The property you are purchasing could be an existing or new-build home in the UK, priced up to £600,000
  • You must not own any other property anywhere in the world at the time you buy your home supported by the Help to Buy: mortgage guarantee scheme
  • Your mortgage must be a repayment one, not interest only. Offset and guarantor mortgages are also excluded from the scheme
  • You can't let out the property to somebody else
  • Your mortgage can be taken out by an individual or individuals but not by a company
  • You cannot use the mortgage guarantee scheme with any other Government scheme such as Help to Buy: equity loan or shared ownership. Your deposit for the property can't come from a government scheme either
  • You don't have to pay any additional fee to Government to get a Help to Buy supported mortgage
  • The size of the mortgage you apply for must be less than 4.5 times your income.



The Help to Buy: mortgage guarantee scheme will run for three years until 31 December 2016.