Covid-19 update: We are open by appointment, Click here for further details.

The Help to Buy Equity Loan Scheme


What is the Help to Buy Equity Loan Scheme?

It’s a Government-backed scheme to help people buy a new home with just a 5% deposit, and a loan of up to 20% of the purchase price. The loan is interest free for the first five years. (Different rates apply to new homes in London).

Is the Help to Buy Equity Loan Scheme just for First Time Buyers?

It’s for both first time buyers, and existing buyers who are buying their main residence.  The home you are purchasing will need to be legal completed by 31st March 2021.

In April 2021 the scheme is changing and will be just for first time buyers, until March 2023, with regional price caps.

Who can apply for this Scheme?

Anyone buying their first home or their main residence, it’s not available for investors or people buying a second home.

How much can I borrow with a Help to Buy Equity Loan?

Up to 20% of the value of the new home, providing the value isn’t over a maximum of £600,000.

Do I have to pay anything to use this scheme?

Not initially, but you will be paying £1.00 per month for a management fee until the loan is repaid.  You will start paying interest on the loan in year 6 which is currently 1.75% in year 6 then 1.75% plus any increase in the Retail Price Index (RPI) plus 1% in each of the flowing years.

If I use this scheme how much mortgage will I need?

If you are borrowing the maximum 20% of the purchase price on a Help to Buy Equity Loan, you’ll also need to have a 5% deposit, this will leave you 75% to cover, with a mortgage or funds.

How much deposit do I need?

You’ll need to pay a 5% deposit when you exchange Contracts.

When do I have to repay the loan?

The Equity Loan must be repaid after 25 years or earlier if you sell your home.

Can I repay the loan early?

Yes you can pay it all or part of it back at any time, with a minimum of 10% of the prevailing market value of your home.

How can I get more information on Help to Buy?

For more information visit  https://www.helptobuy.gov.uk/equity-loan/equity-loans/

How do I apply for the Scheme?

The scheme is run by Government-appointed agents. In our region this is currently the Agent for the South: Telephone 0800 456 11 88. Your Financial Advisor will be able to help you to complete the Application Form, take a look at our Buyers Guide – Financial, for more information.

Other Categories


  Buying a New Home – The Process

When you are buying a new home there is a lot of information to take in. We’ve put together this handy Buyers Guide especially for you, to answer some of the most often -asked questions

  Finance

There’s a lot to think about when you are buying a home, and how you are going to finance the purchase is one of the most important aspects to consider.

  First Time Buyers

When you are buying a home for the first time there a lot of information to take in. We’ve put together this handy Buyers Guide especially for you, to answer some of the most often -asked questions

  The Help to Buy Equity Loan Scheme

The Government-backed Help to Buy Equity Loan Scheme is for anyone buying a home, but it must be your main home. We’ve put together some handy questions and answers to give you an overview.

  Legal

Once you’ve chosen your new home, you’ll need to instruct a Solicitor to complete the legal conveyance work on your behalf. Her are some handy questions and answers to help you understand a bit more about the process.

  Stamp Duty Land Tax

This handy question and answer guide gives you a small snapshot of information about STDL – Stamp Duty Land Tax.

  The Benefits of Buying a New Home

There are many benefits to buying a new home. We’ve put together a handy question and answer guide for you to give you some of the information.

  The Consumer Code

The Consumer Code is for you the buyer and us the house builder, our question and answer guide gives an insight into what the Code is all about.

  Westerhill Homes Customer Services

Once you’ve moved into your new Westerhill Homes home, our dedicated and experienced Customer Services Team will be here to support you. Here’s our handy guide in a question and answer format explaining what to expect.

  Westerhill Homes Easy Move

If you’ve found one of our homes you want to buy, but haven’t sold your own home then our Easy Move Scheme will be the perfect solution. Take a look at our handy questions and answers guide to find out more.

  Westerhill Homes Part Exchange

We are keen to help you move and appreciate that selling your own home is stressful. Our Part Exchange Scheme take all the stress away from you, plus you’ll save on estate agents fees. Here’s some handy questions and answers to explain more about how our part exchange scheme works.

  Westerhill Homes Recommend A Friend Scheme

We want to say thank you when you for introducing Westerhill Homes to your friends and family. How does the scheme work?

  Countdown to Moving

There’s so much to think about when you’re moving home, we’ve put together a handy tips sheet to help you plan the move.

  Your new home warranty

The Westerhill Homes Customer Journey continues once you have moved into your new home with our New Homes Warranty.