Help to Buy is an equity loan provided by the government to help you buy a new-build home in England with a maximum purchase price of £600,000. Different schemes are available in Scotland, Wales and Northern Ireland.
Loans are available for first time buyers as well as home movers with the following conditions:
You must not own any other property at the time you buy your new home with a Help to Buy equity loan
You won't be able to sub-let your new property
You won't be able to part exchange your old house
With a Help to Buy equity loan you will need to contribute at least 5% of the property purchase price. The government will then give you a loan for up to 20% of the price and you'll need a mortgage for the remaining 75%
There are no fees payable for the first 5 years of your equity loan. From the 6th year you will be charged a fee of 1.75% of your loan's value and this will increase every year by using the RPI plus 1%. The fees do not count towards repaying the loan.
Our Help to Buy calculator will work out the maximum purchase price of a new-build property you can look for based on the amount of deposit you have. To use the calculator, enter your figures directly into the corresponding fields & then press 'Calculate'. Your results will appear below the calculator.