Mortgage product changes - We are now accepting mortgage applications for residential purchase and remortgages to up to 90% loan to value (LTV) in our operating area and up to 85% elsewhere.
With a Help to Buy: Equity Loan, you could buy a brand-new house sooner than you think.
The scheme is available on selected new build properties for both first time buyers and home movers.
- You only need a 5% deposit
- The Government lends you up to 20% of the value of the property (15% in Scotland)
- The loan is interest-free for five years
When you sell your property, or choose to repay some or all of the equity loan, the amount you have to pay back will be based on the market value of your property at that time.
For more information please visit helptobuy.gov.uk/equity-loan or mygov.scot/help-to-buy for properties in Scotland.
FAQs
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Am I eligible for a Help to Buy: Equity Loan?
You can apply for a Help to Buy: Equity Loan if you:
- Are 18 or older and buying a new build property
- Don’t own another property
- Can provide a deposit of at least 5% of the property’s value
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How long is the Help to Buy: Equity Loan scheme available for?
The current Help to Buy: Equity Loan scheme is available until March 2021, after which it will be replaced by a new version with regional price caps.
The new scheme will run for two years until March 2023 and it will only be available to first-time buyers.
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What types of mortgage are available with Help to Buy: Equity Loan?
Repayment mortgages are the only option with this scheme.
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What is the maximum property purchase price?
The maximum purchase price is £600,000 for properties in England and £200,000 for properties in Scotland.
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What is the interest rate on the Equity Loan?
You don’t have to pay borrowing fees or interest on the Equity Loan for the first 5 years after buying your home, although you can start repaying the loan whenever you want to.
After 5 years, there will be an interest fee of 1.75% of the amount of your Equity Loan at the time you took it out, which will rise each year after that by the increase in the Retail Price Index.