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Help to Buy – Equity Loan

A Help to Buy equity loan is the Government backed initiative where the government helps you to buy a brand new home by means of an equity loan of up to 20% of the cost of a newly built home, so you only need to provide a 5% deposit and a 75% mortgage to make up the rest.

Who is eligible to apply?

The original Help to Buy: Equity Loan scheme for first time buyers and home movers is ending on 31 March 2021. To qualify for this equity loan you must legally complete buying your home by 31 March 2021.

From 1 April 2021 the Help to Buy scheme will be restricted to first-time buyers only and open for applications for an initial period of two years. The initiative is available to assist the purchase of newly built properties in England up to the value of £600,000. The scheme is designed to assist first-time buyers achieve their dream of home ownership and also qualify for some of the best mortgage rates on the market through selected lenders.

The Help to Buy Equity Loan Scheme is run by Government-appointed Help to Buy agents. They can guide you through your purchase, from providing general information about the scheme to dealing with your application. Prospect Mortgage Services has been appointed as a Help to Buy agent.

How it Works

  • From 1 April 2021 Help to Buy is available to first time buyers only
  • You retain 100% home ownership
  • You only need a minimum of a 5% deposit to qualify for the scheme
  • The Government will lend you up to 20% of the value of your property through an equity loan which is interest free for the first 5 years
  • The loan can be repaid at anytime or when you sell your home or in 25 years – whichever is sooner
  • You will only need to secure a maximum of a 75% mortgage
  • There is a maximum home purchase price of £600,000

Example of a purchase with a Help-to-Buy scheme

Property purchase price £225,000
Cash deposit @ 5% £11,250
Equity loan @ 20% £45,000
Your mortgage @ 75% £168,750



Your home may be repossessed if you do not keep up repayments on your mortgage

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