A Help to Buy equity loan is part of the Government’s initiative to help both existing homeowners looking to move and first-time buyers trying to get onto the housing ladder. The scheme was started to help make up the difference between a homebuyer’s deposit and the deposit required by lenders before they will consider granting a mortgage.
How the Help to Buy Equity Loan Scheme works:
You put down a 5% deposit and the government loan you a further 20%. This portion is known as the ‘equity loan.’ You would need to borrow the remaining 75% from a mortgage lender in the normal manner. For example, if you bought a new home for £200,000 and you had £10,000 to put down, the scheme would allow you up to £40,000 as an equity loan. Your mortgage would make up the difference, namely £150,000.For more details of this watch the video here.
If you later sold the property for £210,000 in a few years time, you would have made a gain of £10,000 on the home’s value. When you sell the property you’d pay back whatever is still owed under the mortgage and the equity loan provided by the government (£40,000). In addition, you’d pay the government an additional £2,000 which would be their share (20%) of the gross increase (£10,000) in the original home’s value (£210,000 - £200,000).
For more details download the Help to Buy Guide.
Who is eligible for a Help to Buy Equity loan?
The scheme is only available on new build homes up to £600,000 and to be eligible the borrower must not own any other property at the time that they apply for the Help to Buy loan. You cannot rent out the property bought and you cannot part-exchange your existing property for the new one you are buying with the help of the loan.
Mortgage Required have partnered with Help to Buy South. We can quickly arrange loans for the purchase of your new home. To check if you are eligible for a Help to Buy Loan ask us for details.
For more details on the various Government Schemes available through Mortgage Required contact us or speak to a mortgage adviser on 01628 507477.
Related Articles:
- “Help to Buy” Government Loan Scheme now available at Mortgage Required.
- What is the Shared Ownership Scheme?
Related Products:
Download our Free First Time Buyers Guide
Recent posts
Best UK Mortgage Rates this Week
Yesterday
Here are the lowest fixed mortgage rates of the week, available to first-time buyers, home movers, buy-to-let, and those remortgaging.
Call us for more information: 01628 507477 or email: team@mortgagerequired.com.
Maidenhead, Berkshire – 26th January 2026 – Dedicated independent mortgage experts, Mortgage Required, are delighted to have acquired fellow experienced brokerage, Y-Not Finance.
The acquisition connects two well-respected brokerages, both with a wealth of experience and shared values, to continue providing the best advice on all aspects of the mortgage market.
As part of the UK government’s plans to change the leasehold system to help families struggling with unaffordable ground rent costs.
The Prime Minister announced this morning (27 January) that ground rents will be capped at £250 per year, reverting to a peppercorn rate after 40 years.
Additional borrowing, also known as a further advance, is when you borrow more money on your existing mortgage for a specific reason agreed with your lender.
Here are five of the most common reasons for additional borrowing.
UK Housing Market Round-Up: 2025
30 Dec 2025
Property search site Zoopla has estimated that the UK housing market will end 2025 with approximately 1.15 million completed sales – 4.5% more than the previous year.
Take a look at the 2025 summary of the UK housing market.
Buying in the New Year
29 Dec 2025
If buying your first property, or moving home, is on your to-do list this year, the new year can be a great time to take this big step. In this short blog, we look at what you need to consider as you plan and prepare for your home-buying journey.
Just because the Bank of England decides to reduce the base rate, this doesn't automatically mean that your mortgage rate will go down.
Autumn Budget 2025: A Summary
26 Nov 2025
Chancellor, Rachel Reeves, has delivered the Autumn 2025 budget. We have summarised the government's plans for tax and spending.
More information
Trusted by
