ways to buy

Help to Buy

Help to Buy offers first-time buyers in England and Wales the opportunity to purchase a home with just a 5% deposit. You can get an equity loan of up to 20% of the cost of a new home; helping you to get on the property ladder quicker and with a smaller amount saved.

Typical Taylor Wimpey street scene

Help to Buy

We’ve put together this guide to the Help to Buy equity loan scheme - read on to find out more.

What is Help to Buy?

Help to Buy is a Government-backed scheme available in England and Wales that allows first-time buyers to buy a home with just a 5% deposit. With Help to Buy, you'll get an equity loan of up to 20% of the cost of a new home; this is interest free for 5 years. The terms of Help to Buy vary slightly across different regions and depending on certain criteria:

How does Help to Buy work?

With the Help to Buy scheme in England and Wales, buyers can get an equity loan from the Government to help them buy a home. You can borrow up to 20% of the full purchase price across England and Wales, except in London where you can borrow up to 40% of the total price of the property.

The Government-backed loan means you can buy a home with a 5% deposit and a smaller mortgage, depending on the value of your chosen property and the amount of your loan. The maximum price of a Help to Buy home varies by region.

Typical Taylor Wimpey bedroom

Steps to buying

Firstly, you’ll need to identify the home you’d like to purchase. It must be a new-build home, a home built by a Help to Buy-registered homebuilder, and it must be the only home you live in.

You’ll need to find an Independent Financial Advisor (IFA) to confirm your financial status. We can recommend some IFAs for you, or your Help to Buy agent can also suggest advisors to contact.

You must also reserve your home. You’ll need a signed reservation form from the homebuilder as proof. Reserving a home is subject to a reservation fee.

Once you’ve reserved your home, you can then apply for a Help to Buy equity loan. To do this, you must complete a Property Information Form (PIF) and send it to your local Help to Buy agent, who will assess your affordability and ensure you’re eligible for the loan - click here to find a local agent. You can get a Property Information Form from your Sales Executive.

When you have been approved for a Help to Buy equity loan, you can then apply for your mortgage. Here’s our guide to the mortgage application process. Approval for a mortgage is subject to a number of checks.

The Help to Buy equity loan can cover between 5% and 20% of the purchase price in England and Wales, and 40% in London. For example, if you got a 20% equity loan for a £200,000 house, you’d receive a loan of £40,000.

The loan is interest-free for five years, but there is a £1 monthly management fee. When you enter the sixth year, you’ll start to pay interest on your loan, starting at 1.75%. The interest rate increases every year by adding the Consumer Price Index (CPI) measure of inflation plus 2%. This interest rate is applied to the original loan amount.

Help to Buy Calculator

Our Help to Buy calculator gives you an idea of the type of home you could buy through the scheme based on your available deposit. All you have to do is enter the location you’d like to buy a home in and your available deposit, and the calculator will tell you:

  • The maximum price of the home you may be able to buy
  • The amount you would receive with a 20% Help to Buy equity loan
  • The size of the mortgage you’d need to obtain

 The Help to Buy scheme calculator will estimate the percentage of the purchase price taken up by the deposit. This will vary depending on the amount of your deposit, the purchase price of the property you want to buy and the region that you’d like to purchase a home in.

Benefits of Help to Buy

The Help to Buy scheme provides a number of benefits to those looking to get on the property ladder. 

 Terms and conditions apply. Please visit taylorwimpey.co.uk/terms for full details.