Help to Buy Equity Loan (2021-23), England

First-time homebuyers in London who meet affordability and lending terms can borrow an equity loan of up to 40% of the sale price of a new build home. The maximum full purchase price in London is £600,000; you (the buyer) must fund at least 60% of the sale price with a mortgage and at least a 5% deposit.

You pay no interest on the 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 loan.

Homes England, the lender, secures the equity loan as a second charge on your Help to Buy home. You must repay the equity loan when you sell the home or pay off your mortgage. You can repay all or part (10% to 30%) of the loan any time before then. An independent financial adviser and a solicitor may be able to help you decide if Help to Buy is right for you. Your home may be repossessed if you do not keep up repayments on your mortgage, equity loan or other loans secured against it.

You can find your Help to Buy agent at