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Help to Buy

The Help to Buy: Equity Loan in England is changing on 1 April 2021.

5% cash deposit + 20% equity loan + 75% mortgage = 100% home ownership

On 1 April 2021, a new Help to Buy: Equity Loan (2021-2023) for first-time buyers only replaces the current scheme. To buy a home with the current scheme, you must reserve it by 15 December 2020. You must legally complete your home purchase by 31 March 2021, to be able to get the equity loan funding. Help to Buy: Equity Loan (2021-2023) is subject to eligibility, terms and conditions.

As with the current Help to Buy: Equity Loan, you can borrow up to 20% in the regions or 40% in London of the cost of a new build home. The amount you can spend on your home will depend on where in England you live.

For further information on how these changes might affect you, please speak with one of our experienced sales executives or visit the Government's dedicated webpage.

Help to Buy scheme
Help to Buy scheme example

What is Help to Buy and how can it help you?

The Help to Buy: Equity Loan scheme
  • Help to Buy: Equity Loan is available on new-build properties in England up to £600,000 (there are price cap changes from 1 April 2021).
  • There's no household annual income limit and it's available to all types of home buyers (only first time buyers from 1 April 2021)
  • You only need: - a minimum 5% cash deposit; and - no more than a 75% repayment mortgage
  • HM Government will lend you an equity loan of up to 20% of the full purchase price of the home, it's interest-free for the first five years.
  • You can repay your Help to Buy: Equity Loan at any time, when you sell your home,or you can wait until the end of its term

Help to Buy: Equity Loan calculator

Use our calculator guide to find out how Help to Buy: Equity Loan could help you buy a new home with just a 5% deposit.

Are you looking for a property in:
  • Adjust the slider or enter the amount of deposit you have available to purchase a home. The higher the deposit amount, the higher your Help to Buy: Equity Loan budget will be. This calculator assumes that the minimum allowable deposit for ‘Help to Buy: Equity Loan’ is 5%.

    Your deposit

    How much deposit do you have?

    x Please alter your amount to between the minimum and maximum figures.
    Max £30k Min £5.062k
    £
  • The Government could lend you up to 20 of the value of your property through an equity loan, which will be interest free for the first 5 years and can be repaid at any time or on the sale of your home. The Government could lend you up to 20 of the value of your property through an equity loan, which will be interest free for the term of the loan and can be repaid at any time or on the sale of your home.

    Help to Buy: Equity Loan

    The Government could lend you up to 20 of the home value.

    x Please alter your amount to between the minimum and maximum figures.
    Max £120k Min £20.25k
    £
  • You will only need to secure up to a 75 mortgage – qualifying for some of the best rates available.

    Mortgage

    Mortgage required

    x Please alter your amount to between the minimum and maximum figures.
    Max £450k Min £75.938k
    £

Your results

  • Your deposit
  • Help to Buy: Equity Loan
  • Your mortgage

Your results

  • £5,500Your deposit (5%)
  • £20,500Help to Buy: Equity Loan (20%)
  • £76,000Your mortgage (75%)
Your budget with
Help to Buy: Equity Loan
£101,250

Help to Buy FAQs

How long is the current scheme available for?

Help to Buy: Equity Loan, which is open to first time buyers and movers, will end in March 2021. A new Help to Buy: Equity Loan for first time buyers only will replace it on 1 April 2021. Find out more here on the Government's dedicated webpage.

Where are the schemes available?

The Help to Buy: Equity Loan scheme is available across all Charles Church developments in England up to £600,000. (NB: there are price cap changes from 1 April 2021).

Can you clarify the equity loan element?

In England, HM Government will provide you with a Help to Buy: Equity Loan up to 20% value of the full purchase price of the property. This loan is interest-free for the first five years. From year six you will be required to pay an interest fee of 1.75% of the amount of your Help to Buy: Equity Loan, rising each year after that by the increase (if any) in the Retail Prices Index (RPI) plus 1%.

What are the repayment terms of equity loans under the Help to Buy scheme in England?

You can repay the equity loan any time within the first 25 years (or the term of the mortgage), or when you sell the property. In addition it is also possible to repay part of the equity loan subject to certain limits and criteria.

Are equity loans under the Help to Buy scheme in England available on pre-owned homes?

No, this scheme is only available on new-build homes like those built by Charles Church.

Can I use Help to Buy: Equity Loan if I already own a home?

Yes - this scheme is available to both first-time buyers and existing homeowners. (NB: the scheme is only available to first time buyers after 1 April 2021).

Are equity loans under the Help to Buy scheme in England available under a buy-to-let option?

No - this scheme is only available to purchasers using the property as their main residence.

What types of mortgage are available with equity loans under the Help to Buy scheme?

You must arrange a repayment mortgage.

Where can I get independent financial advice?

Charles Church can put you in touch with a list of recommended independent financial advisers who can assist you every step of the way.


Help to Buy: Equity Loan terms and conditions

The Help to Buy: Equity Loan scheme is available on all plots in England, with a full purchase price up to £600,000, subject to status. Eligible applicants will be offered an equity loan of up to 20% of the purchase price at the open market value. Applicants are required to fund at least 80% of the purchase price with a conventional main mortgage and minimum of 5% cash deposit. For the first five years there is no interest charged on the equity loan. At the start of year six, 1.75% interest is payable on the equity loan, which rises annually by RPI inflation plus 1%. The equity loan is provided by the Government's Homes and Communities Agency (trading as Homes England), and held as a second charge on the Help to Buy home. Terms and conditions apply. Applicants should seek independent financial advice, and get information and guidance on applying for a Help to Buy: Equity Loan at www.helptobuy.gov.uk

A professional legal adviser is required to carry out the legal formalities of buying the home and to represent your interests. Charles Church can provide you with a list of recommended solicitors and/or financial advisers as necessary. Charles Church cannot advise you on a mortgage. The Help to Buy scheme is subject to availability and may be withdrawn at any time without notice. Not to be used in conjunction with any other purchase assistance scheme, offer or promotion. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE, YOUR EQUITY LOAN OR OTHER DEBT SECURED ON IT. For full details on the Help to Buy: Equity Loan scheme please visit www.helptobuy.gov.uk

Help to Buy related links: