Help to Buy Calculator (Scheme Closed)

Help to Buy: Equity Loan Scheme Closed

Important: The Help to Buy: Equity Loan scheme closed to new applications on 31 March 2023. This calculator is maintained for existing Help to Buy customers who need to calculate repayments or staircasing options.

First-time buyers: Please explore current government schemes and support options:

First-Time Buyer Calculator Shared Ownership Calculator Lifetime ISA Calculator

Note: If you're an existing Help to Buy customer, you can continue to use this calculator for repayment planning and staircasing calculations.

Calculate Help to Buy Costs

Enter your property details to see your equity loan amount, mortgage payments, and total costs.

Property Value (£)

Your Deposit (£)

Equity Loan (%)

Mortgage Interest Rate (%)

Mortgage Term (years)

UK Help to Buy Scheme

Government equity loan scheme designed to help first-time buyers purchase new-build homes with just a 5% deposit. The government provides an interest-free equity loan for the first 5 years, reducing the mortgage amount needed.

Equity loan amounts: Up to 20% of property value (40% in London). Combined with your 5% deposit, you only need a 75% mortgage (55% in London), making homeownership more accessible.

Key benefits: Lower mortgage payments, reduced deposit requirements, and access to new-build properties with modern energy efficiency and warranties.

Important: Available only for new-build properties purchased as your main residence. Regional price caps apply - check current limits for your area.

Eligibility & Requirements

Essential eligibility criteria for Help to Buy scheme participation:

First-time buyer status: You must not have owned a property before (applies to all applicants)
New-build only: Property must be newly constructed by participating developers
Minimum deposit: 5% of property value required from your own funds
Regional price caps: Property value must be within local limits (£186,100-£600,000)
Main residence: Must be purchased as your primary home, not investment property
Mortgage approval: Must secure mortgage approval for remaining amount after equity loan

Tip: Use our affordability calculator to check your borrowing capacity before applying.

Equity Loan Costs

Understanding long-term costs of Help to Buy equity loans:

Years 1-5: Interest-free period - no monthly payments on equity loan
Year 6 onwards: 1.75% annual fee on outstanding equity loan amount
Annual increases: Fee rises each year by RPI inflation + 1%
Repayment options: Pay in chunks of 10% minimum or full amount anytime
Sale/remortgage: Must repay based on current property value percentage

Example: £60,000 equity loan (20% of £300,000) costs £1,050/year from year 6, increasing annually.

Planning tip: Consider using our overpayment calculator to plan early equity loan repayment strategies.

Related Calculators

Frequently Asked Questions

Essential information about Help to Buy in the UK

What is Help to Buy?

Help to Buy is a government scheme that helps first-time buyers purchase new-build homes with a 5% deposit. The government provides an equity loan of up to 20% (40% in London) of the property value.

How does the equity loan work?

The equity loan is interest-free for the first 5 years. After that, you pay 1.75% annually, increasing each year by RPI + 1%. You repay the loan when you sell or remortgage, based on the current property value.

Who is eligible for Help to Buy?

You must be a first-time buyer purchasing a new-build property as your main residence. You need a minimum 5% deposit and the property must be within the regional price caps.