A guide to Help to Buy

If you are looking to buy a new house or move home but are unsure if you can afford it then it is worthwhile looking into the governments Help to Buy schemes. These can help towards the cost of the deposit, which is often the largest outlay when purchasing a new home. 

By allowing buyers to purchase property with a 5% deposit these schemes make the housing market more accessible and affordable to people searching for their next home. 

Currently the only scheme availble with new build properties is the Help to Buy: Equity Loan. This is available to first time buyers and many developers offer it as an incentive to buy. The scheme varies depending where in the country you want to buy. 

Here is a quick run through of the Help to Buy Equity loan offering for London. 

Help to Buy London

How does it work?

Help to Buy is an equity loan from the government up to 40% of the value of a property, provided you have a deposit of 5% you will only need a mortgage of 55% of your new home.

The property you buy must:

  • be a new build
  • have a purchase price of up to £600,000, subject to regional price caps
  • be the only one you own
  • not be sub-let or rented out after you buy it

Help to Buy London equity loan example

HTB london250

For a property worth £400,000AmountPercentage
Cash deposit£20,0005%
Equity loan£160,00040%
Your mortgage£220,00055%

How do I pay back the Help to Buy London equity loan?

You must pay back the loan after 25 years or when you sell your home - whichever comes first. You will not be charged any interest on the 40% loan for the first five years of owning your home. However a management fee of £1 a month will be applicable from the date of purchase for the duration of the equity loan.

From year six, a fee of 1.75% is payable on the equity loan, which rises annually by CPI (Consumer Price Index) inflation plus 2%. For full information about the scheme, please visit

Help To Buy Calculator

Loan value