Help to Build: Equity Loan open for applications
A new government scheme to help people in England to custom and self build their own homes opens for applications on Monday 27 June 2022.
Help to Build – backed by £150 million government funding –can make building a home a more realistic option, even for people with a small deposit.
Applicants can borrow an equity loan of between 5% and 20% (up to 40% in London) of the estimated costs to buy the land (if needed) and build their new home, subject to eligibility and terms and conditions.
They will need at least a 5% deposit of the estimated land and build costs and to apply for a 95% self build mortgage from a lender registered with Help to Build.
The scheme will support custom build, self build or shell build projects, allowing users of the scheme to be involved as much as they want to be in the construction of the home.
Options range from self builds where they handle every stage of the project, to shell builds where a professional takes responsibility for building the structure of the home, leaving the internal layout and design to be finished by the homeowner.
When you take out the equity loan, you agree to repay it in full, plus interest and management fees. You will start to pay interest from year 6, until the equity loan is paid back in full.