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.

Now all types of buyers could benefit from this shared equity scheme, whether you’re a first time buyer or an existing home owner wanting to move into a new house.

With the initiative available on properties in England up to the value of £600,000 the distant dream of home ownership can become a reality. Plus you could 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

  • Help to Buy is available to all homebuyers, not just first time buyers
  • 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£195,000
Cash deposit@ 5%£9,750
Equity loan@ 20%£39,000
Your mortgage@ 75%£146,250

Help to Buy Calculator

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