top of page

Help to Buy : Equity Loans

Equity loans are open to both first-time buyers and home movers on new-build homes in England with a purchase price up to £600,000.You won’t be able to sub-let your home if you use this scheme. It must also be your only property. How it works with an equity loan:

  • You will need to contribute at least 5% of the property price as a deposit

  • the government will give you a loan for up to 20% of the price

  • you’ll need a mortgage of up to 75% to cover the rest

Example Cash


5% Equity loan£40,000

20% Your mortgage£150,000

75% Equity loan fees

You won’t be charged loan fees for the first 5 years of owning your home. In the sixth year, you’ll be charged a fee of 1.75% of the loan’s value. After this, the fee will increase every year. 

The increase is worked out by using the Retail Prices Index plus 1%.Your Help to Buy agent will contact you before the fees start, to set up monthly payments with your bank. You’ll also be sent a statement about your loan each year.Fees don’t count towards paying back the equity loan.Applying for an equity loan

You must buy your home from a registered Help to Buy builder. Your Help to Buy agent should have a list of registered builders for you to choose from.Selling your home and paying back the loan 

You must pay back the loan after 25 years or when you sell your home - whichever is earliest. How much you pay back will depend on the market value at that time.



Bought for £200,000

20% Borrowed £40,000

Sold for £250,000

20% Pay back £50,000

You can pay back part or all of your loan at any time. The minimum percentage you can pay back is 10% of the market value of your home. The amount you pay will depend on the market value at that time.


Bought for £200,000

Borrowed 20%

Borrowed £40,000

Value at time of payment £220,000

Paying back 10%

Pay back £22,000

Information as per

bottom of page