Eligibility for Help to Buy: Equity Loan

Help to Buy: Equity Loan is open to all buyers seeking a newly built home in England. It is not just for first-time buyers.

As an appointed agent for Help to Buy, we need to make sure all applicants meet the eligibility criteria for the scheme.

To apply for a Help to Buy: Equity Loan you must:

  • have a deposit with a minimum value of 5% of the full purchase price of the property
  • arrange a repayment mortgage valued at between 25% and 75% of the full market value of the home (up to 55% in London)
  • reserve a newly built home, being purchased from a registered Help to Buy property developer, up to the value of £600,000
  • be able to evidence that you can afford the repayments on the equity loan and all other outgoings

At the time you buy your new home with a Help to Buy: Equity Loan you must not:

  • own any other residential property, or have your name attached to the deeds of another residential property, in the UK or abroad. The home purchase through an equity loan must be the only home you will own. 

Married couples are considered as owning assets (such as property) jointly and therefore, if one owns a property, the other is directly linked to it and is treated as a homeowner.

You will be expected to sell your current home (in the UK or abroad) if moving. 

The scheme is not available to assist buy-to-let investors or to own land with planning permission to build residential properties.

  • sub-let or rent the property out after you buy it, without written consent to do so.
  • have a financial interest in any other residential property, even if you do not live there.

If you make a fraudulent claim for a Help to Buy: Equity Loan you may be liable to criminal prosecution. You will also have to pay back the loan immediately.

Affordability checks

We will carry out an initial eligibility and sustainability assessment. This helps to determine how much you can reasonably afford based on your outgoings. 

It’s important that you can keep up with repayments over the longer-term. Your home may be at risk if you do not keep up the repayments on your mortgage or other loans secured against it.

The calculator and guidance used to assess eligibility and sustainability (opens in a new window) is set by the government and is available to review online.

Further affordability checks will be carried out by your financial advisor or mortgage advisor.

Applying for Help to Buy: Equity Loan

Those who are eligible for a Help to Buy: Equity Loan can start the application process.

rating button