Help to Buy: Equity Loan 2021-2023
Imagine yourself in your very own first home. If you're looking to buy in London, this Government scheme could lend you up to 40% of the market value towards a new home.
What is Help to Buy & how can it help you?
Help to Buy: Equity Loan scheme is available to first time buyers on new-build properties in England*. How much you can spend on your home will depend on where you’re buying.
To find out more about the scheme and how to apply, download the
homebuyers guide to Help to Buy: Equity Loan (2021-2023)
How long is the current scheme available for?
Help to Buy: Equity Loan, which is open to first-time buyers only, will end in March 2023. For more information, visit the Government's dedicated webpage.
Where are the schemes available?
The Help to Buy: Equity Loan scheme is available across most Persimmon developments in England where our homes fit the price cap criteria.
Can you clarify the equity loan element?
The equity loan is interest-free for the first 5 years. There will also be a £1 monthly management fee by Direct Debit.
From year 6, you’ll pay a monthly interest fee of 1.75% of the equity loan. Interest fees will rise each year in April by the Consumer Price Index (CPI), plus 2%. You’ll continue to pay interest until you repay your loan in full plus the £1 monthly management fee.
What are the repayment terms of equity loans under the Help to Buy scheme in England?
You must repay the equity loan when you pay off your repayment mortgage, sell your home or reach the end of your loan term, normally 25 years.
You can pay off your equity loan in full any time before then or make part payments. Your first part repayment will need to be at least 10% of what your home is worth at that time.
Are equity loans under the Help to Buy scheme in England available on pre-owned homes?
No, this scheme is only available on new-build homes like those built by Persimmon.
Can I use Help to Buy: Equity Loan if I already own a home?
No - this scheme is only available to first-time buyers. If there are joint applicants then both must be first-time buyers.
You must check that you satisfy the qualifying criteria to be first-time buyer under the scheme. For example, 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 or have had any form of sharia mortgage finance.
Are equity loans under the Help to Buy scheme in England available under a buy-to-let option?
No - this scheme is only available to purchasers using the property as their main residence.
What types of mortgage are available with equity loans under the Help to Buy scheme?
You must arrange a repayment mortgage.
Where can I get independent financial advice?
Persimmon can put you in touch with a list of recommended independent financial advisers who can assist you every step of the way.
Professional Help to Buy agents will help you to apply for an equity loan if you’re eligible and can afford the equity loan on top of your other outgoings. You can find your Help to Buy agent at www.helptobuy.gov.uk/equity-loan/find-helptobuy-agent
**Help to Buy: Equity Loan (2021-23), England is available subject to eligibility, terms and conditions. First-time homebuyers who meet affordability and lending terms can borrow an equity loan of up to 20% (40% in London) of the sale price of a new build home. How much you can spend on your home will depend on which region it is in. North East £186,100; North West £224,400; Yorkshire and the Humber £228,100; East Midlands £261,900; West Midlands £255,600; East of England £407,400; London £600,000; South East £437,600; South West £349,000. You must fund at least 80% (60% in London) of the sale price with a mortgage and at least a 5% deposit.
To qualify for the Help to Buy: Equity Loan 2021-2023 programme, you must be a first-time buyer, meaning purchaser(s) who have not (either alone or with others): previously acquired via purchase, gift, trust or inheritance and major interest in a dwelling or an equivalent interest in residential land situated anywhere in the world; and/or benefited from any form of sharia mortgage finance. If the Eligible Dwelling is being bought by more than one individual, all purchasers must be first-time buyers.
Pay no interest on the loan for the first 5 years. Interest fees start at 1.75% and rise each year in April by the Consumer Prices Index (CPI) plus 2%. You pay a monthly management fee of £1 for the life of the loan. Homes England, the lender, secures the equity loan as a second charge on your Help to Buy home. You must repay the equity loan when you sell the home or pay off your mortgage. You can repay all or part (10% to 30%) of the loan any time before then. An independent financial adviser and a solicitor may be able to help you decide if Help to Buy is right for you.
A professional legal adviser is required to carry out the legal formalities of buying the home and to represent your interests. Persimmon can provide you with a list of recommended solicitors and/or financial advisers as necessary. Persimmon cannot advise you on a mortgage. Your home may be repossessed if you do not keep up repayments on your mortgage, equity loan or other loans secured against it.
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We’ve been awarded a four-star rating by the Home Builders Federation in their 2020 survey.
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The prices shown are correct at the time of being published but are subject to change without prior notice, please contact our Marketing Suite for accurate price information.
Site layouts are intended for illustrative purposes only, and may be subject to change, for example, in response to market demand, ground conditions or technical and planning reasons. Trees, planting and public open space shown are indicative, actual numbers and positions may vary. Site plans does not form any part of a warranty or contract. Further information is available from a site sales advisor.
The dimensions shown are approximate and the precise measurements may vary.
For full details on the HM Government-backed Help to Buy: Equity Loan scheme please visit www.helptobuy.gov.uk.
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