Help To Buy Equity Loan Calculator

 Help To Buy is coming to an end on the 31st of March 2023. You can reserve a new build property until the end of October 2022 and will need to complete the purchase before the March deadline. 

The Help to Buy Equity Loan Scheme allows first-time buyers to purchase a new-build property with as little as a 5% cash deposit. To help you buy a property, the government would lend you 20% (or 40% in London) of the value of the property in a form of an equity loan. The rest of the purchase price you will pay via mortgage arranged on the open market. Most lenders allow first-time buyers to arrange their mortgage through the Help to Buy scheme. 

The Help To Buy Equity Loan is interest-free for the first 5 years, with only a £1 fee per month. However, from year 6, you will pay 1.75% of the value of the original loan, this will be charged monthly. For example, if your Help To Buy Equity Loan was £20,000, you will pay £29 per month. This interest fee will increase each year by the Retail Price Index (RPI) plus 2% until you repay the loan.