Help to Buy: Equity Loans
How does it work?
Help to Buy: Equity Loans
How does
it work?
Overview
- Help to Buy: Equity Loan, is a loan from the government that you put towards the cost of buying a newly built home in England
- You will need to have a deposit of at least 5% of the purchase price and a deposit
- You can borrow between 5% and 20% of the price of a new-build home
- The maximum property price is the full purchase price which is £349,000 in the South West
- When you take out an equity loan, you do not pay interest for the first 5 years
- When you repay your loan in full or in part, the amount you pay back is worked out as a percentage of the market value, at the time you choose to repay
To be eligible for Help to Buy from April 2021:
You must be a first-time buyer
The new build home you buy must be priced at £349,000 or under in the South West
You and anyone you’re buying a home with must not own a home or residential land now or in the past in the UK or abroad
Those buying a home must not have had any form of sharia mortgage finance
A joint application will need to be made if applicants are married or in a civil partnership