Fact sheet

Help to Buy

Help to Buy equity loans

With a Help to Buy: Equity Loan the Government lends you up to 20% of the cost of your newly built 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.

Help to Buy equity loans are open to both first-time buyers and home movers on new-build homes worth up to £600,000.

London Help to Buy

To reflect property prices in London the Government lends you up to 40% of the cost of a newly built home, so you'll need a 5% deposit and a 65% mortgage to make up the rest.

You won’t be charged loan fees on the 40% loan for the first five years of owning your home.

London Help to Buy equity loans are open to both first-time buyers and home movers on new-build homes worth up to £600,000.

In the March 2014 Budget the government extended Help to Buy equity loans to March 2020. In the 2015 Autumn Statement the Government announced that Help to Buy equity loan would be extended until 2021. 

Covid 19 and the closure of the scheme

Help to Buy in its current guise is ending in March 2021, but Homes England is extending legal completion up to 31 May 2021 for all buyers due to delays caused by Coronavirus. This allows an extra 2 months for homebuilders to complete the build and for homebuyers to legally complete. Homes England states there will be no further extensions.

Another scheme, Help to Buy mortgage guarantees, were discontinued at the end of 2016.

For further information on Help to Buy schemes, including London Help to Buy, please visit www.helptobuy.gov.uk

For further information on other affordable home ownership schemes such as shared ownership please visit www.gov.uk

There are different home ownership schemes available in Wales and Scotland .

Contact

Simon Rex

Information Services Manager

Tel: 0207 520 5914 simon.rex@bsa.org.uk