Calculate your deposit, equity loan, and mortgage amount under the Help to Buy equity loan scheme.
Help to Buy equity loan scheme rates (example)
This calculator works out the deposit, government equity loan, and mortgage amount needed under a Help to Buy-style equity loan scheme, which allows buyers of new-build homes to put down a smaller deposit by supplementing it with an equity loan from the government — reducing the size of the mortgage needed compared to a standard purchase.
The property price is split three ways: your cash deposit, the government equity loan, and the remaining amount covered by your mortgage. Because the equity loan reduces the mortgage amount needed, your monthly mortgage payment is lower than it would be without the scheme — but the equity loan isn't free long-term, as a fee becomes payable from year 6 (and the loan itself must eventually be repaid, typically based on the property's value at repayment, not the original loan amount).
Formula: Deposit = Property Price × Deposit %. Equity Loan = Property Price × Equity Loan %. Mortgage Amount = Property Price − Deposit − Equity Loan. Monthly Mortgage Payment uses the standard amortising loan formula on the Mortgage Amount. Equity Loan Fee (from year 6) = Equity Loan Amount × Fee Rate (example 1.75%, typically increasing with inflation in later years).
Example: For a £300,000 new-build property with a 5% deposit (£15,000) and a 20% equity loan (£60,000), the mortgage needed is £225,000. At a 5.25% interest rate (example rate — enter your actual rate) over 25 years, the monthly mortgage payment would be roughly £1,348. From year 6, an equity loan fee of around £1,050/year (1.75% of the £60,000 equity loan, example rate — this typically increases with inflation in later years) would also become payable, on top of the mortgage payment. (Note: this example is for illustration purposes only and does not represent any specific scheme currently open to new applicants.)
The Help to Buy equity loan scheme allowed buyers of new-build homes in England to buy with as little as a 5% deposit, with the government providing an equity loan (commonly 20% of the property price, or up to 40% in London) interest-free for the first 5 years. From year 6, a fee becomes payable on the equity loan (commonly starting around 1.75% and increasing with inflation in subsequent years), and the loan itself must eventually be repaid — typically as a percentage of the property's value at the time of repayment (whether through sale, remortgaging, or paying it off directly), meaning the amount repaid reflects any change in the property's value, not just the original loan amount. Important: the Help to Buy equity loan scheme stopped accepting new applications in England in 2023 — this calculator illustrates how the scheme worked (useful for existing Help to Buy homeowners working out their fees or repayment, or for understanding historical purchases), but it isn't available for new purchases. Always check current government and Homes England guidance for any schemes currently open to first-time buyers, as replacement or successor schemes may exist with different terms.
No — the Help to Buy equity loan scheme in England stopped accepting new applications in 2023. This calculator illustrates how the scheme worked, which remains useful for existing Help to Buy homeowners managing their equity loan, but it isn't an option for new purchases. Check current government guidance for any schemes currently available to first-time buyers.
Under the scheme, the equity loan was interest-free for the first 5 years. From year 6, a fee became payable (commonly starting around 1.75% of the loan amount), which typically increased each year afterwards in line with inflation (often using the RPI measure plus a margin). This fee was in addition to your regular mortgage payment.
The equity loan is typically repaid as a percentage of the property's market value at the time of repayment (e.g., 20%), not as a fixed pound amount equal to the original loan. This means if your property has increased in value, the amount you repay in pounds will be higher than the amount you originally received — and if it has decreased, you may repay less.
Yes, the equity loan scheme was specifically for new-build properties, often subject to regional price caps (the maximum property price eligible varied by region). It generally wasn't available for purchasing existing (resale) homes.
London property prices are significantly higher than the national average, so the scheme offered a larger equity loan percentage (up to 40%, compared to 20% elsewhere) to help make the scheme more accessible to buyers in the London market, where a 20% equity loan combined with a 5% deposit might still leave too large a mortgage relative to typical incomes.
First-time buyers should look at currently available options, which may include other government-backed schemes, mortgage products designed for smaller deposits (such as 95% mortgages), the Lifetime ISA (which provides a 25% government bonus toward a first home), and shared ownership schemes. Each has different eligibility criteria and trade-offs — check current government and lender guidance for what's available.
Disclaimer: The information, rates, fees, and figures provided on this page are for educational and illustrative purposes only and do not constitute financial advice. The Help to Buy equity loan scheme illustrated here stopped accepting new applications in England in 2023 and may not reflect any scheme currently available. Equity loan fees, repayment terms, and price caps were set by the government and Homes England and varied over the life of the scheme. Always check current government guidance and consult a qualified financial adviser or mortgage broker before making property purchase decisions.