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Help to Buy Equity Loan

How much deposit do I need?
At least 5% of the property value.

How much of the property will I own?
The government has an equity share in your home of up of to 20% (up to 40% in London), until you repay the equity loan.

What are the key benefits to the loan?
The loan enables you to buy a new-build property with a smaller deposit, normally 10% and in some cases 15%.

How much mortgage and / or personal deposit do I need?
You must contribute 80% of the home’s price, for example, with a minimum 5% personal deposit and up to 75% mortgage. If your buying in London, you must contribute at least 60% of the home’s price.

Who is eligible?
To be eligible for Help to Buy: Equity Loan (2021-2023):
  • you must be a first-time buyer.
  • the new build home you buy must be within the relevant regional price cap.

  • You and anyone you’re buying a home with must:
  • not own a home or residential land now or in the past in the UK or abroad
  • not have had any form of sharia mortgage finance.

  • What are the Price Caps?
    The maximum purchase price for a Help to Buy property depends on what region of England you live in. Under the new scheme you are unable use Help to Buy to purchase a property above these limits. areas. The caps have been set at 1.5 times the average first time buyer price in each region (as of Autumn 2018).

    Price caps across England:
    North East - £186,100   North West - £224,400   Yorkshire & The Humber - £228,100   West Midlands - £255,600   East Midlands - £261,900
    South West - £349,000   East of England - £407,400   South East - £437,600   London - £600,000
    North East - £186,100
    North West - £224,400
    Yorkshire & The Humber - £228,100
    West Midlands - £255,600
    East Midlands - £261,900
    South West - £349,000
    East of England - £407,400
    South East - £437,600
    London - £600,000

    How do I repay help to buy equity?
    The equity loan must be repaid after 25 years, or earlier if you wish. You must repay the same percentage of the proceeds of the sale as the initial equity loan (if you received an equity loan for 20% of the original purchase price of your home, you must repay 20% of the proceeds of the future sale or value). A more positive way to look at this would be if your house price increases you benefit from 80% property growth while help to buy by 20%.

    What happens after 5 years help to buy?
    If you don't repay your equity loan within five years, you'll start being charged interest on it. Interest is only charged on the original amount you borrow, but this will increase your monthly outgoings. At Instinct we will aim to put an action plan in place at the outset with the aim of repaying the loan before you start to make interest only payments to the help to buy loan.

    For more information about Help to Buy, or would like some more general advice, please call us on: 01914910820, or email us at:

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    Instinct Financial Solutions, 696 Durham Road, Low Fell, Gateshead, NE9 6JA
    Country of registration – England and Wales and registration number - 09487631
    Instinct Financial Solutions Limited is an appointed representative of Sesame Ltd which is authorised and regulated by the Financial Conduct Authority.