Help to Buy Equity Loan
Up to 20% interest free loan for the first 5 years

Help to buy equity loan example

• New property purchase: £250,000
• Help to buy equity loan: (20%)£50,000
• Customer deposit: (5%)£12,500
• Customer mortgage: £187,500

No interest is charged on the help to buy equity loan for the first five years.

From year 6 onwards the customer is charged 1.75% per annum. For the initial percentage for the equity loan.

After this, the fee will increase every year. This increase is based on the retail price increase plus 1%.

Help to buy equity scheme

From April 2013 the Government Help to Buy equity scheme was available for all buyers purchasing a new home.

Unlike previous Government's initiatives, this scheme is open to all builders and or developers who register for the scheme. Former help to buy schemes were restricted to selected builders only so were unlikely to be as successful as the current help to buy equity loan scheme.

Builders and developers can register for the help to buy equity scheme here http://www.homesandcommunities.co.uk/help-to-buy

When the property that was purchase through the scheme is sold, it is mandatory that it is at the full market value. The selling price must therefore match the main mortgage lender's independent valuation.

Purchasers cannot part-exchange their existing property for a Help to Buy equity scheme purchase.

There are many mortgage lenders that will accept help to buy equity home loan applications. Home buy customers can sometimes have full access to the mortgage lenders products as they would with a normal purchase. Please contact Impartial for further information.From 1 April 2021 , Help to Buy (HTB) in England and London is changing. The current scheme offers home movers and first-time buyers the chance to purchase a property up to £600k with a 5% deposit, and an additional Government-backed loan of up to 20%, interest free for five years.
The new scheme is open to first time buyers only and there will be regional house purchase price caps. This means the Help to Buy loan amount a customer can borrow will depend on the area they live in. Joint applications for the scheme must both be first time buyers. This will impact all HTB mortgages completing from 1 April 2021.
Help to Buy agents will start to take applications for the new HTB scheme from 16 December , which is when the new eligibility rules are introduced.