Help To Buy

The Help to Buy scheme has been set up by the Government and is designed to help first time buyers and existing home owners to buy a home (NB – Only HtB1 is exclusively for new build property). It means that you can buy a property worth up to £600,000 with as little as a 5% deposit. However, there are certain conditions:

You cannot own other properties (including properties abroad).

Your mortgage must be a repayment one.

The Help to Buy scheme cannot be used in conjunction with any other Government mortgage scheme.

You cannot rent out your property.

You cannot take out a mortgage as a company.

The value of your mortgage must be less than 4.5 times your annual income.

Help to Buy 1: Equity Loan

The Help to Buy 1: Equity Loan makes it easier to obtain a mortgage if you cannot afford a large deposit. The Government will lend you 20% of the cost of your new-build property. The balance of the total cost is a 5% deposit and 75% mortgage. And for the first five years of owning your home you won’t even be charged loan fees on the 20% loan.

As an example imagine you are buying a home that costs £200,000. The Government will give you a loan of £40,000. Your 5% deposit will be £10,000 and your mortgage will be £150,000. If you were to then sell your home for £210,000 you’d get £168,000 (80%) and you’d pay back £42,000 (20%) on the loan. You’d need to pay off your mortgage using your share of the money.


Help to Buy 2: Mortgage Guarantee

This scheme enables you to secure a high loan-to-value mortgage of 80-95% of the property’s value. The Government will provide a guarantee on 15% of the mortgage which will give lenders greater confidence about lending you the money. You still need to be able to afford the mortgage and you will be responsible for all repayments.

As an example imagine you are buying a home that costs £200,000. You have a 5% deposit (£10,000) and you secure a 95% mortgage (£190,000) from a mortgage broker. The Government’s guarantee ensures that 15% (£30,000) of the loan is covered in the event that you experience problems.


You can look for a mortgage lender that’s offering a high loan to value (LTV) product (i.e. a 95% mortgage). Enquire about Help to Buy 2: Mortgage Guarantee scheme and the lender will do the rest. You can apply for a mortgage through participating high street lenders or through a mortgage broker.

Help to buy calculator

For more information please speak to our sales staff or visit the Help to Buy website.