What is Help to Buy?

It is run by the government to help you get onto the property ladder even if you do not have a large deposit saved.

There are two separate schemes:

Help to Buy mortgage guarantee scheme

This scheme could help you buy an existing property or a new build home anywhere in the UK.

You will need a deposit of at least 5% of the property's value and a mortgage to cover the rest. This can be up to 95% of the total price, which is called its loan to value (LTV).

To make it easier to get accepted for a mortgage, the government provides a guarantee to your lender for up to 15% of your home's value. This would cover some of the lender's costs if you failed to pay your mortgage and they had to repossess your home.

The mortgage guarantee scheme was launched on 8 October, 2013 and will end on 31 December, 2016.

Help to Buy equity loans

In England, this scheme gives you a loan from the government that you can put towards buying a new build home worth up to 600,000. The loan is interest free for five years.

To buy a home you need a deposit you have saved yourself of at least 5% of the purchase price. The equity loan from the government can cover up to 20% of the price, and the mortgage will cover the rest.

For example, if you bought a home that cost 200,000:

  • You could pay a 5% deposit of 10,000

  • You could get a 20% equity loan of 40,000

  • You would need a mortgage for the remaining 75%, which would be 150,000

In London the equity loan can cover up to 40% instead of just 20%.

You need to repay the amount you borrow from the government within 25 years or when you sell the house, but you can choose to pay it back before then.

There are separate schemes for:

  • Wales, where the scheme works in the same way but with a maximum purchase price of 300,000

  • Scotland, where the Affordable New Build Schemes let you buy a home with a 5% deposit and a 15% equity stake provided by the government

  • Northern Ireland, where you can buy a home worth up to 150,000 through their Co-Ownership scheme

The equity loan scheme was launched on 1 April, 2013 and will be withdrawn in 2020.

Are you eligible for Help to Buy?

Both schemes are available if you are over 18 and if you are a first time buyer or you already own a property and want to move house. They can only be used:

When you apply, lenders check you will be able to afford a mortgage before they accept you. Here is how they check this.

Mortgage guarantee scheme

You can use these Help to Buy mortgages for a home in the UK worth less than 600,000. You could use it for:

  • A new build

  • An existing property

  • Remortgaging your current home

Equity loan scheme

In England you can only use this to buy a new build home worth less than 600,000. You must buy it from a house builder registered with the Homes and Communities Agency.

If you are buying elsewhere in the UK, here are eligibility rules for the schemes in:

How much does it cost?

Mortgage guarantee

The costs are the same as you would pay to take out a normal mortgage, with no extra fees. This is because it helps you get accepted for a mortgage, but you do not borrow any extra money from the government. You will need to save a deposit of between 5% and 20%.

Equity loan

Your Help to Buy mortgage will come with all the same costs as any other mortgage, but you also have to pay back your equity loan and pay fees on it.

You do not pay back the exact amount you borrowed because your equity loan is calculated as a percentage of your property's value.

For example, if you bought a property for 200,000, a 20% equity loan would come to 40,000. If you sold your home later for 220,000, you would have to pay back 20% of this to the government, which would come to 44,000.

  • For the first five years this loan is interest free, but you pay a monthly management fee of 1 by direct debit.

  • After five years you will be charged an additional annual fee until you have paid back the loan.

  • This will start at 1.75% of the amount you owe and is charged each year.

  • The rate will increase each year by the same amount as the Retail Price Index (RPI) plus 1%. The RPI is a statistic the government uses to measure inflation.

  • You can repay this fee with a monthly or annual direct debit.

How to apply for Help to Buy

Mortgage guarantee

The process is the same as buying a home with a normal mortgage.

However, your choice of mortgages will be smaller because you will have to choose a specific Help to Buy mortgage from one of the lenders that offer them.

You can find a Help to Buy guarantee scheme mortgage and apply directly through a lender using our comparison.

Equity loan

You can contact your local Help to Buy agent to:

  • Find a property

  • Check your eligibility

  • Start your application

  • Find out if you will be accepted for an equity loan

You will also need to find a Help to Buy mortgage to take out alongside your equity loan.

What if your circumstances change?

Help to Buy is part of a legal agreement, so any changes to your policy will need to be agreed by everyone named on the mortgage and your Help to Buy agent.

You also have to pay any administration costs charged by the scheme and your lender. Check with them how much this will cost.

If your partner moves out

You can apply for Help to Buy and a joint mortgage with a partner or another person.

If one person moves out, for example if you got divorced, you need to contact:

  • Your lender to remove one of you from the mortgage

  • Your Help to Buy agent if you used the equity loan scheme

You will then need to draw up a legal document called a Deed of Release, which formally removes one of you from the scheme and the property.

If someone else moves in

You could add someone to your mortgage and the Help to Buy agreement, but you need permission from your Help to Buy agent and lender.

If you lose your job

You still need to keep paying your mortgage and any Help to Buy fees, even if your income goes down.

If you die

If you bought your home jointly with someone else, ownership of the property can pass to:

  • The surviving co-owner, who then owns the home in full

  • Another person named in your will, who could inherit your share in the property

If you own your property by yourself, your share in it is passed to the person named as beneficiary in your will. If you used the equity loan scheme, they will also be responsible for paying the rest of the loan back.

They can sell your home or keep it in their name if they can afford the mortgage and loan payments.

Should you use Help to Buy?

Work out if it is right for you by looking at the pros and cons of Help to Buy.

If you decide against using Help to Buy, you may still be able to buy a home.

Help to buy scheme FAQs


Can I get Help to Buy in London?


The equity loan or mortgage guarantee scheme can be used in London. Equity loans can cover 40% of the purchase price for property in London.


Can I buy a property off-plan?


You can reserve a home before it is built and use the Help to Buy scheme. Make sure your mortgage offer is still valid when the sale goes through.


Could I get shared ownership instead?


Yes, the government also offer the Shared ownership scheme, which lets you buy a share of your home's value of between 25% and 75%.


What is the Help to Buy ISA?


It is a savings account that pays tax free interest and includes a bonus paid by the government if you use it towards a deposit. Find out more.