Last Updated on 23rd September 2020
With a Help to Buy Equity Loan, the Government lends you up to 20% of the cost of your newly built home. This means that you’ll only need a 5% cash deposit and a 75% mortgage to make up the balance.
A Help to Buy Equity Loan allows buyers to become exempt from loan fees on the 20% loan for the first five years of homeownership.
How to qualify for a Help to Buy Equity Loan
The home you buy must be:
- a new build home
- have a purchase price of up to £600,000 in England (or £300,000 in Wales)
- the only home you own
- for residential purposes (not sub-let or rented out once purchased)
- a property that you can show you can’t afford (if you’re applying in Wales)
How a Help to Buy Equity Loan works
With an equity loan:
- you will need a 5% deposit
- the government will lend you up to 20% (up to 40% in London)
- you’ll need a mortgage of up to 75% for the remainder (up to 55% in London)
You must buy your home from a registered Help to Buy builder. Your Help to Buy agent should have a list.
Speak to a Help to Buy expert
If you’re unsure of whether you’ll qualify, you can speak to an expert mortgage advisor for information on the latest government schemes. Our advisors also specialise in a wide variety of mortgage fields, such as help to buy with bad credit, self-employed mortgages and first-time buyer mortgages.
Getting a mortgage for a new build also isn’t as straightforward as most people think. With so many options such as buying off-plan and buyer incentives available, it helps to speak to an expert.
Often applicants go straight to their bank. Banks will only offer their own products and not necessarily the best overall deal on the market. The mortgage arena is packed full of some great rates right now. As our advisors are whole of market, we aren’t tied to one lender. This means that we can search the market far and wide to ensure you really are getting the best rates and the best-suited product.