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Help to Buy Mortgages

Find out more about Help-to-Buy mortgages

If you are using the Government's Help to Buy scheme, then you will need to get a specialist Help to Buy mortgage. Our preferred mortgage broker can help you to find a lender that will accept your application.


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  • Benefit from a five-year interest-free loan from the government
  • Available for new build properties
  • Only 5% deposit required
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Get expert help for your help to buy mortgage

If you’re a first time buyer looking to take your first steps onto the property ladder, a Help to Buy mortgage could be perfect for you! Mortgage Advice Bureau's expert advisers are always available to help you find the best Help to Buy mortgage for your circumstances.

Your home may be repossessed if you do not keep up repayments on your mortgage’

Michelle Monck

Michelle Monck

Consumer Finance Expert

At a glance

  • The Government’s Help to Buy scheme helps you to buy a new build property with only a 5% deposit, with a five-year interest-free equity loan of up to 20% (or 40% in London) allowing you to take on a mortgage at up to 75% loan-to-value (55% in London).
  • After five years, interest is charged at 1.75%, increasing by the same rate as the Consumer Price Index (CPI) plus 2% in April each year thereafter. The loan needs to be repaid after 25 years, when the mortgage ends or if you sell the house – whichever comes first.
  • From April 2021, price caps have been implemented and the support restricted to first-time buyers only (previously, both first-time buyers and home-movers could benefit from the scheme).

What is the Help to Buy equity loan?

The Government's Help to Buy Scheme was first launched in April 2013. It aims to help borrowers secure a 95% loan-to-value (LTV) mortgage on a new build property. 

The English Help to Buy equity loan involves the Government lending you up to 20% of the value of a new build home outside of London and up to 40% in London. There are similar schemes available in  Wales and Northern Ireland, but there may be differences in how these schemes work. The Scottish scheme has now closed. You will need to have saved at least 5% of the property value as a deposit to qualify for a Help to Buy equity loan. You can then use this deposit of at least 25% to access a range of Help to Buy mortgages from participating lenders for the remaining 75% of the cost of your new home.

It is important to note that Help to Buy equity loans can only be taken out for new build properties and cannot be used to help with the purchase of older properties, and it must be your only residence.

This scheme is now open only to first-time buyers. Loans can be applied for in joint names, just as per a normal mortgage. Since April 2021, there are price caps applying to the property, depending on where the property is located, which are as follows:

English Region

Price Cap for Help to Buy Properties


North East



North West



Yorkshire and the Humber



East Midlands



West Midlands



East of England






South East



South West



How much does a Help to Buy equity loan cost?

Successful applicants pay nothing on the sum lent to them by the Government for the first five years. After this time, you will pay interest on the loan of 1.75%. This rate then increases each year by the CPI (Consumer Price Index – a measure of inflation) plus 2% and continues until you repay the loan in full. From the start of the loan, you will pay a monthly management fee of £1 until the loan is repaid.

It’s important here to stress that the money you pay to the Government at the start of year six and beyond is for the interest on your loan only. The capital amount (i.e. the sum you borrowed from the Government) will not decrease and remains outstanding.

How to calculate your Help to Buy equity loan

Let’s say that you took out a Help to Buy equity loan for a new build property worth £200,000. The Government would expect you to contribute 5% of the mortgage price (5% of £200,000 = £10,000) leaving £190,000 to finance.

For those outside of London, the maximum Government loan is 20% of the property price. In this case, 20% of £200,000 = £40,000.

You would then get a mortgage for the remaining £150,000 (£200,000 less your deposit of £10,000 and the Government’s equity loan of £40,000).

For those living in London, you can increase the equity loan to 40% of the property’s value.


When do I repay the equity loan?

You must repay the equity loan when you pay off your repayment mortgage, sell your home or reach the end of your loan term, normally 25 years. An important point to note is that the value of the Government’s equity loan is tied to the property value, not the initial amount you borrowed. This means that if property prices have increased since you took out the equity loan then you will need to pay more back, likewise if house prices have dropped, you’ll repay less (subject to interest and fees).

How do I repay the Help to Buy equity loan?

You can repay the loan in full or in part at any time. However, if you choose to pay it off in parts, then these must be a minimum of 10% of the value of the loan.

How much will I need to pay back?

If no part repayments have been made, at the point you are ready to pay back your Help to Buy equity loan you will need to pay 20% of your property’s current value – not the amount you initially borrowed. In addition, you will need to pay back interest and charges.

If the house price has increased:

Let’s say you originally purchased your house for £200,000 and this has now increased in value to £250,000. If you borrowed the full (outside of London) amount of 20% then you will now have to pay back £50,000 – even though the Government only lent, you £40,000 originally (20% of £250,000 = £50,000).

If the price of your home has gone down:

If your £200,000 house is now only worth £175,000 then the amount you must pay back likewise goes down. In this example, you had borrowed 20% from the Government and would therefore repay 20% of £175,000 = £35,000, even though your original loan was for £40,000.

Should I speak to a mortgage broker?

Mortgage brokers remove a lot of the paperwork and hassle of getting a mortgage, as well as helping you access exclusive products and rates that aren’t available to the public. Mortgage brokers are regulated by the Financial Conduct Authority (FCA) and are required to pass specific qualifications before they can give you advice.


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Your home may be repossessed if you do not keep up repayments on your mortgage.

Where can I get a Help to Buy mortgage?

You can apply for a Help to Buy mortgage with the following lenders:

  • Accord
  • Aldermore
  • Bank of Ireland UK
  • Barclays
  • Bluestone Mortgages
  • Cambridge Building Society
  • Chorley Building Society
  • Cumberland Building Society
  • Kensington
  • Leeds Building Society
  • Mansfield Building Society
  • NatWest
  • Newbury Building Society
  • Newcastle Building Society
  • Pepper Money
  • Platform
  • Precise Mortgages
  • Principality Building Society 
  • Royal Bank of Scotland
  • Santander
  • Skipton Building Society
  • Teachers Building Society
  • The Mortgage Lender
  • Vida Homeloans
  • Virgin Money
  • West Brom Building Society

Correct as at 23/05/2022

How can I find a Help to Buy property?

Registered builders and developers will advertise if their properties are available under the Help to Buy scheme.

How do I apply?

If you want to buy a home through the Help to Buy Equity Loan scheme, you must either contact a Help to Buy agent in the area you want to live in or contact a participating house builder. To find an agent in your local area, visit the Government website.

What alternatives are there?

You can enjoy tax-free saving for your first home using a lifetime ISA.

Pros and cons of Help to Buy equity loans

  • Lower monthly payments for the first five years compared to a standard 95% LTV mortgage.
  • You can buy a new build home sooner compared to saving for a 20% deposit.
  • You pay nothing to the Government for the equity loan for the first five years (but you do still have to pay the mortgage from your lender!).
  • Available to qualifying first-time buyers.
  • You can’t use this scheme to buy an older property.
  • The value of the property you can purchase is capped depending on where you live
  • The scheme is restricted to selected new build homes and lenders.
  • The scheme will take on first-time buyers only before it closes completely for new applicants in October 2022 in England and Northern Ireland and March 2023 in Wales.

Other Government Help to Buy schemes

This is the Government scheme that covers people living in England and allows you to buy a new build property with a 5% deposit and up to an additional 20% loan outside of London, and up to 40% in London from the Government.

London Help to Buy

With London house prices reaching much higher levels than most other places in the UK, there is a special scheme in place for people looking to buy their first home in the capital. Under this extension of the main scheme, first-time buyers can qualify for a 40% interest-free equity loan, which is backed by the UK Government.

Armed Forces Help to Buy

Designed specifically for people serving in the armed forces, this is a special Help to Buy scheme. Just as with the ordinary Help to Buy scheme, armed forces personnel can get a favourable, interest-free loan, backed by the UK Government to help towards a home deposit and costs.

Rent to Own - Wales

People living in Wales who do not have enough saved for a deposit on a new house are covered by this scheme, which allows them to rent a home that they can buy at a later date. The future mortgage deposit is subsidised by the rent that person pays. This is not specifically covered within this guide.

Help to Buy in Wales and Northern Ireland

People in Northern has the Ireland Co-ownership scheme. Borrowers in Wales are covered by the Help to Buy (Wales) scheme.

Other Help to Buy schemes

There are several other schemes all aimed at helping people to own at least a share in their own home. These include Starter Homes, Social HomeBuy and Help to Buy - Shared ownership.

Interested in discussing your options? Why not speak to a mortgage broker. Alternatively, find exactly what you are looking for on our mortgage comparison charts.


Moneyfacts tip

Moneyfacts tip nigel woollsey

Saving for a deposit can seem like a daunting task but there's plenty of practical steps you can take to boost your savings and cut your costs. Our helpful guide explains.

Content published on 07 February 2020.

Disclaimer: This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.

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