Help to Buy encompasses an equity loan scheme through which you can be offered an equity loan of up to 30% of the purchase price on selected new build schemes. Use our Find a Property page to find Help to Buy schemes in your area. You will need to have funds (including a mortgage plus any deposit) of at least 70% of the purchase price. You will however own your new home outright.
For the first five years you pay no interest on the loan. At the start of year six, you start to make monthly payments at a rate of 1.75% rising at RPI + 1% p.a. You can buy a bigger share in your home over time in a process known as 'staircasing'.
You can sell the home on the open market, at which time the equity loan is repaid as a percentage of the market value at the time of sale. So if you received a 25% equity loan to purchase under Help to Buy, you will repay 25% of the value at the time it is sold.
For full details of the Help to Buy scheme, download the following buyer's guide: