Help to Buy scheme

Help to Buy is a government scheme designed to help you to buy a home if you cannot afford it. Please note that the scheme is not available to foreign purchasers. If you are a foreign national you must have indefinite leave to stay in the UK to take advantage of the Help to Buy scheme.

The 2 main types of the scheme:

  • Equity loans where the government lends first-time buyers and home movers money to buy newly built homes in England with a price up to £600,000.
  • Mortgage guarantee where the government provides your lender with a guarantee that it will cover losses in case the mortgage is not repaid. This is available for both newly built and older homes in the UK with a price up to £600,000.

Please note that you cannot use these schemes to buy a second property or a buy-to-let property.

Equity loans

How it works

  • You pay at least 5% of the purchase price deposit
  • The government lends you up to 20% of the price
  • You obtain a mortgage for the rest (of up to 75%)


Purchase price £200,000


For the first 5 years you will not be charged any loan fees.

In the 6th year you will be charged a fee of 1,75%, and the fee will increase every year.

When you sell your home, or repay the mortgage, you will have to repay the equity loan together with a share of any increase in the value.

Mortgage guarantee

This is a government-backed mortgage designed to encourage your lender to provide you with a mortgage with you only contributing a small deposit.


  • Purchase price under £600,000
  • Not a shared ownership
  • Not a second home
  • Not a buy-to-let property
  • Cannot use it together with another scheme

You do not have to be a first-time buyer and there is no limit on your level of income. Now most major lenders are offering mortgages under the Help to Buy scheme.

Please note that you will still be responsible for paying the mortgage the same way as any other mortgage.