To qualify, the home you are looking to purchase must be a new build, your only home (not a second home or a property you plan to rent out) and must not cost more than £600,000.
You may be able to get on the property ladder with just a 5% deposit. Step one is to work out your finances with your mortgage adviser and then visit house builders to find a potential new home. Before paying the reservation fee, speak to us to get a mortgage 'Decision in Principle'. This will provide you with an approximate idea of the size of mortgage you would qualify for.We will be delighted to advise you on your purchase to make things as simple as possible and find and arrange the right mortgage for you. As an authorised Home Buy agent we will also organise the government "equity loan" part.
Mortgages are subject to the scheme rules and the lenders normal checks and criteria. Help from your Advisory Financial Services mortgage broker is invaluable to help you prepare and to arrange a successful mortgage offer.
If the home in the example above sold for £210,000, you'd get £168,000 (80%, from your mortgage and the cash deposit) and you'd pay back £42,000 on the loan (20%). You'd need to pay off your mortgage with your share of the money.
For more information (including information on fees and paying back your loan) please download the Help to Buy equity loan buyers guide
We have also prepared our own useful guide to help you think about the steps you need to take when buying a home
How to work out interest fee payments from year 6 onwards
Repaying the Help to Buy Equity Loan
Your home may be repossessed if you do not keep up repayments on your mortgage