Help to buy

The Government has created the Help to Buy scheme to help people buy their own home.

The following schemes are currently available:

A reference guide for Help to Buy

The table below provides a quick guide to how each scheme works and who can apply.


How it works


ISA - Help to Buy

  • First payment to your ISA can be up to £1200 and you then pay up to £200 per month. 

  • When you purchase your conveyancer will apply for the extra 25%

  • Apply direct to bank or building society

  • Commenced December 2015

  • Purchase price up to £450 000

  • Only home you own

  • Where you intend to live

Equity Loan - Help to Buy 

  • The Government lends you up to 40% of the cost of your newly built home, so you’ll only need a 5% cash deposit and a 75% mortgage to make up the rest.

  • You won’t be charged loan fees on the 40% loan for the first five years of owning your home.

  • After that you will pay a fee on each of the equity loans of 1.75%, rising annually by the increase in the Retail Price Index (RPI) plus 1%

  • Apply direct to Help to Buy Agent – Aldwyck Housing Group

  • Commenced March 2012

  • Equity loans are available to first time buyers as well as homeowners looking to move.

  • The home you want to buy must be newly built with a price tag of up to £600,000.

  • You won’t be able to sublet this home or enter a part exchange deal on your old home.

  • You must not own any other property at the time you buy your new home with a Help to Buy: 

Mortgage Guarantee - Help to Buy

  • Government offers lenders the option to purchase a guarantee on mortgage loans.

  • Lenders taking part are able to offer home buyers more high loan-to-value mortgages (80-95%).

  • You will still be fully responsible for your mortgage repayments. So if you have a 5% deposit, you will need to take out and pay back a 95% mortgage.

  • Apply direct to banks or lenders.

  • Have a purchase price of £600,000 or less

  • Be the only home you own

  • Not be rented out after you buy it

  • Not be bought through shared ownership, shared equity or any other publicly funded mortgage scheme

  • Be bought with a repayment (rather than an interest-only) mortgage

  • You don’t have to pay any additional fee to the Government to get a Help to Buy supported mortgage

  • The size of the mortgage you apply for must be less than 4.5 times your income.

  • The Help to Buy: mortgage guarantee scheme will run until 31 December 2016.