Mortgage Fact Sheet

Help to buy Equity Loan

Open to first-time buyers on new build homes

If you are a first-time buyer in England you can apply for the Help-to-Buy Equity Loan (2021-2023).This is a loan from the government that you can put towards the cost of buying a newly built home.

What is Help-to-Buy (2021-2023) and how does it work?

You will need to have at least 5% of the property price as a deposit. The Government will then give you a loan of 5% and upto a maximum of 20% (40% in London) of the full purchase price of a new-build home. The remaining 75% (or 55% inLondon) of the property price is to be paid for by a mortgage from a mortgage lender.

In April 2021, the Government amended the scheme making it available to first-time buyers only as well as introducing a regional property price cap to focus on helping those who need the scheme the most.

How much you can spend on your home will depend on which region it is in

Region Price cap for Help to Buy homes April 2021 to March 2023

North east£186,100
North west£224,400
Yorkshire and The Humber£228,100
East Midlands£261,900
West Midlands£255,600
East of England£407,400
South east£437,600
South west£349,000


The equity loan, the deposit you have saved, and your repayment mortgage cover the total cost of buying your newly built home.

For the first 5 years

  • The equity loan is interest-free
  • You pay a £1 monthly management fee by Direct Debit

From year 6:

  • Pay the £1 monthly management fee
  • Pay interest on the equity loan part charged at 1.75% per annum

  • Interest rate will rise each year in April by CPI plus 2%

  • Continue to pay interest until you repay your loan in full

You must repay your equity loan in full:

  • At the end of the equity loan term

  • When you pay off your repayment mortgage

  • When you sell your home