Help to Buy is a government scheme which can help first time home buyers with just a 5% deposit.


Help to Buy: Equity Loan scheme (2021-2023) is the revised scheme applicable from the 16th December 2020

First-time home buyers who are eligible for an equity loan can borrow up to 20% (40% in London) of the purchase price of a new build home

How much you can spend on your home will depend on which region it is in.


Region Price cap to March 2023
North east £186,100
North west £224,400
Yorkshire £228,100
East Midlands £261,900
West Midlands £255,600
East of England   £407,400
London £600,000
South east £437,600
South west £349,000


You pay a deposit of 5% of the purchase price of your new home at exchange of contracts and arrange a repayment mortgage of at least 25% of the purchase price of your new home.

You won’t be charged interest on the equity loan for the first 5 years. Interest fees start at 1.75% and rise each year in April by the Consumer Prices Index (CPI) plus 2%. You pay a monthly management fee of £1 for the life of the equity loan.

An equity loan is secured against your property in the same way as a repayment mortgage. You must repay the equity loan when you sell the home, pay off your repayment mortgage or reach the end of your equity loan term. But, you can repay all or part of the equity loan any time before then.