Help to Build: Equity Loan

  • Ownership: Full ownership.
  • Headline benefits: A government equity loan to help fund your custom or self build home.
  • Headline requirements: 18 years of age or over, and have a right to live in England, will live in the newly-built home as your only home and secure a self build mortgage from a lender registered with Help to Build.

Overview of scheme

Help to Build is a new government equity loan that will be available to people in England who want to custom build or self build their own home.

Custom build and self build homes are not just for people who have owned or built a home before. Help to Build can make building your own home a realistic choice, even if you have a small deposit.

A custom build or self build home means that you can decide on the:

  • design – building in features that suit your lifestyle, such as energy efficiency and smart technology
  • internal layout – designing a home that will suit your family’s specific needs
  • location – homes can often be the size and scale you want, built on smaller plots of land available for development in the area you want to live.

With Help to Build, we can offer you an equity loan based on the estimated costs to buy a plot of land and build the home.

The equity loan amount can be between 5% to 20% (up to 40% in London) of the total estimated cost.

If you’re eligible, you can spend up to £600,000 on your new home. This must include the cost of the land if you don’t already own it, and no more than £400,000 on the cost to build it.

Applications will open for Help to Build: Equity Loan during winter.

You can apply for Help to Build if you:

  • are 18 years of age or over, and have a right to live in England
  • will live in the newly-built home as your only home
  • secure a self build mortgage from a lender registered with Help to Build

Find out more: www.gov.uk/help-to-build-your-home

How to apply for the scheme

  1. 1

    Secure a self build mortgage, from a lender registered for Help to Build, or through a broker.

  2. 2

    Apply for Help to Build through Homes England

  3. 3

    If your application is successful, you’ll receive an equity loan offer based on the estimated cost to buy a plot of land (if needed) and build the home.

  4. 4

    When your home is complete, Homes England will pay the equity loan to the registered lender.

Further details on applying for the scheme

 

When can I apply?

Applications for Help to Build will be open from Winter 2021.

How long is the scheme open for?

Help to Build funding is available for 4 years, from Winter 2021 when applications open. If demand is higher than expected, funding may become unavailable sooner.

How long will the process take?

If you accept the offer of an equity loan from Help to Build, you’ll have 3 years to buy the land (if needed) and build your home.

Eligibility checks

You can apply for Help to Build if you: are 18 years of age or over and have a right to live in England, will live in the newly-built home as your only home, and you secure a self build mortgage from a lender registered with Help to Build. When you apply, Homes England will carry out eligibility checks, including making sure that you can afford the equity loan payments.