Help to Buy: Equity Loan
If you want to own a new-build home in England but you haven’t saved a big enough deposit, the Help to Buy: Equity Loan scheme could offer the help you need.
You could borrow up to 20% of the cost of a new-build home from the government on homes up to £600,000. You would then only need a 5% cash deposit and a 75% mortgage to make up the rest. You also benefit from not paying interest for the first 5 years.
To reflect the current property prices in London, from 1 February 2016 the Government will increase the upper limit for the equity loan it gives new home buyers within Greater London from 20% to 40%. You would still need a 5% cash deposit so you would only need a 55% mortgage to make up the rest. Find out about London Help to Buy.
The Help to Buy: Equity Loan scheme is run by regional Help to Buy agents. They can guide you through your purchase, from providing general information about the scheme to dealing with your application. Alternatively, look out for the Help to Buy logo on new-build developments and ask about the scheme there.