Help To Buy Equity Loan Calculator

Help To Buy Equity Loan

 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.

How much could you borrow with Help to Buy Equity Loan?

Calculate the value of the property you could get based on your salary and Help to Buy Equity Loan. 

How to apply?

Calculate how much you can borrow using the Help To Buy Calculator

  1. Find your new home – search online for new homes on the Help-to-Buy website 
  2. Reserve your new home – you will have to pay a reservation fee of up to £500. You will get a refund if you will not be accepted for the Equity Loan
  3. Speak to us about your mortgage options.
  4. Apply for your equity loan through the Help-to-Buy portal and submit your paperwork.
  5. If you get accepted, you will get ‘Authority to proceed’.
  6. At this time, we will apply for the mortgage. We will find the lender who will most likely approve you. We have access to over 90 lenders, that could accept you even in the most complicated cases, for example, if you have bad credit, or you are self-employed with irregular income.
  7. When your mortgage is approved, the normal conveyancing process will start. We can also help you to find and choose solicitors who are experienced with Help To Buy Loans.

Your property may be repossessed if you do not keep up repayments on your mortgage. 

Book your free consultation