You can get an equity loan towards the cost of buying a new-build home as a first-time buyer.
The Help to Buy: Equity Loan scheme will close to new applications at 6pm on 31 October 2022.
This guidance applies to England. There’s different guidance on how to apply for an equity loan in Scotland and how to apply for an equity loan in Wales.
How it works
You’ll need to pay a minimum deposit of 5% of the property purchase price
You can then borrow an equity loan to cover from 5% and up to 20% of the property purchase price of your newly built home. If the property is in London, you can borrow up to 40%. You then arrange a repayment mortgage for the rest of the property purchase price
The equity loan percentage you borrow is used to calculate your interest and equity loan repayments.
You do not have to pay interest for the first 5 years. In the sixth year, you’ll be charged interest at a rate of 1.75%. This will be applied to the equity loan amount you originally borrowed (the equity loan percentage of the property purchase price). This annual interest is spread over the year in monthly payments.
We make it easy to navigate through this seeming maze of options to get on the property ladder. We are here to help you every step of the journey and we want to help you make buying your dream home a more affordable reality, you have peace of mind by contacting us and getting the very best mortgage for your situation. Let us help you make getting the keys to your new dream home a reality.
Your home may be repossessed if you do not keep up repayments on your mortgage.