Is Help to Buy only for first-time buyers? 

Help to Buy is available to both first-time buyers and existing homeowners.

What is Help to Buy?

Help to Buy is a Government-backed scheme which helps first-time buyers and existing homeowners purchase a home with as little as 5% deposit – making now a great time to buy. There are two ways to purchase a property with Help to Buy – either with an Equity Loan or Mortgage Guarantee.

What are the differences between Equity Loan and Mortgage Guarantee?  



Equity Loan

Mortgage Guarantee

Type of home

New-build homes only 

 New and old homes

Mortgage required 



Government Equity Loan 

Up to 20%

Maximum purchase price

£600,000 in England

£300,000 in Wales



How does the Equity Loan work? 

A Help to Buy Equity Loan provides you with an equity loan of up to 20% of the property value which can be repaid at any time within the first 25 years (or the terms of mortgage), or alternatively on the sale of the property. In England and Wales, you won’t be charged any loan fees for the first five years of owning your home. In the sixth year, you’ll be charged a fee of 1.75% of the loan’s value. After this, the fee will increase every year. The increase is worked out by using the Retail Prices Index plus 1%. Fees don’t count towards paying back the equity loan. With a Help to Buy Equity Loan, you only need up to a 75% mortgage; but with a Help to Buy Mortgage Guarantee, buyers will need up to a 95% mortgage.

Why has Help to Buy been set up? 

The UK Government is continuing its pledge to help more people across the country become homeowners, by making more low-deposit mortgages and new housing available.

Am I able to buy a house under the new scheme? 

If you have a 5% deposit you will be able to buy a new home under Help to Buy subject to mortgage approvals.

What is the maximum property purchase price? 

The maximum home purchase price with a Help to Buy Equity Loan is £600,000 in England and £300,000 in Wales. The maximum home purchase price with a Help to Buy Mortgage Guarantee is £600,000 in England, Scotland and Wales.

Can I use Help to Buy for a buy-to-let property?

No, the scheme is only available on properties that will be occupied by the person or persons who have taken out the mortgage.

Am I able to get an interest-only mortgage using Help to Buy?

No, the scheme is only available in relation to capital repayment mortgages.