Help to Buy FAQ

If you're looking for more information about the Help to Buy equity loan scheme, you can take a look at our Help to Buy Frequently Asked Questions below or download our Help to Buy Buyers Guide.

What is Help to Buy

The Help to Buy scheme consists of an “equity loan” where the Government will loan you up to 20% of the value of your new build home. Here's how the Help to Buy Scheme works:

  • You put down a 5% deposit
  • The Government will lend you up to 20% of the value of your property through an equity loan
  • You only need to secure up to a 75% mortgage from a bank or building society
  • The equity loan can be repaid at any time or on the sale of your home 
  • The scheme is only available on new build homes and on homes up to a maximum value of £600,000

Take a look at the Help to Buy Buyers Guide for full details.

Why is Help to Buy right for me?

Help to Buy could be the right scheme for you if you are interested in a new build home but want to make your mortgage repayments more affordable.

Why has the Government launched Help to Buy?

The Government wants to help more people across the country make the aspiration of home ownership a reality. Help to Buy is aimed at increasing the supply of low-deposit mortgages.

Can I buy a house now using Help to Buy?

Yes, if you have a 5% deposit.

Can existing homeowners access the scheme?

Yes. Both schemes are available to home movers as well as first-time-buyers, subject to meeting the relevant eligibility criteria.

What if I don’t have a deposit – can I still get a mortgage?

To access a Help to Buy product, buyers will need a minimum 5% deposit.

Am I guaranteed to get a mortgage? Are there any criteria I need to meet?

Borrowers will need to meet appropriate tests to ensure they can pay back the mortgage, as well passing their chosen lender’s credit and affordability checks.

How much can I borrow?

Subject to meeting the eligibility criteria and affordability checks, you’ll be able to use the Help to Buy scheme to purchase a property with a value up to £600,000 (in England). To purchase your property you will need to put down a 5% deposit, raise a 75% mortgage and the Government will lend you 20% of the value of your new home.

What are the terms and conditions of the Help to Buy equity loan scheme?

Eligible applicants will offered an equity loan of up to a maximum of 20% of the purchase price (based on the open market value) Applicants are required to fund at least 80% of the purchase price by means of a conventional mortgage, savings and any deposit where required. For the first five years there is no fee charged on the equity loan component. At the start of year six a fee of 1.75% is payable on the equity loan, which rises annually by RPI inflation plus 1%. The equity loan is provided by the HCA and held as a second charge. Terms and conditions apply and full details will be provided on request. This offer is subject and only available on selected developments and properties in England only. It is not offered with any other promotion. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

The example below shows how fees are calculated. The fee payment is not made for the first five years. After this date a monthly fee will be payable and the table below illustrates how this would work on Help to Buy equity loan totalling £40,000.

Help to Buy monthly payment table

Your solicitor/conveyancer will be able to provide more illustrations when they advise you on your purchase. Take a look at the Help to Buy Buyers Guide for more information.

Can I get an interest only mortgage using Help to Buy?

Help to Buy is only available on capital repayment mortgages.

Can I buy a property using Help to Buy and rent it out?

Help to Buy will only be available on properties which are occupied by the individual or individuals taking out the mortgage.

Can I get a mortgage through an incorporated company?

Help to Buy mortgages are only available to an individual or individuals rather than incorporated companies.

How do I go about accessing the scheme?

Speak to your Sales Executive for more details. You can search for the development of your choice below, and get in touch with us today.