Before you get started, make sure you have the funds to pay for:
- a fee to reserve your home (up to £500)
- a 5% deposit on exchange of contracts (if you have a larger deposit, pay the rest on completion)
- other fees on completion (stamp duty, legal fees and mortgage fees).
Check that the equity loan meets your needs and that you can afford to repay it.
Consider seeking independent advice to help you understand your financial situation.
You can apply with a Help to Buy agent in the area where you want to live, in England.
For more information download the Homebuyers’ guide to Help to Buy: Equity Loan.
Things to know before you apply
Help to Buy: Equity Loan is not a discount scheme or a price reduction – the purchase price of the new home will be the same whether you buy it with or without an equity loan.
The equity loan is only interest free for the first 5 years, you will begin to pay interest from year 6.
The total equity loan amount you repay is linked to the value of your home at the point of repayment, and not the amount you borrowed.
You must have a repayment mortgage, and it must be valid for the duration of the equity loan.
An equity loan is secured against your home by a legal charge in the same way a repayment mortgage is.
Help to Buy: Equity Loan is exempt from regulation by the Financial Conduct Authority.
For more information go to who is eligible