Help to Buy
Help to Buy Mortgage Guidance and Support Services
Expert Help to Buy Consultation and Application Support
The Help to Buy: Equity Loan was a UK government initiative designed to help first-time buyers purchase a new-build home with a smaller deposit, and was available across the country. The scheme’s aims were to increase homeownership and support the housing market by making it easier for more people to buy their first home. While the scheme closed to new applicants on 31 October 2022, approximately 206,330 equity loan accounts remain active across England, meaning expert guidance remains essential for existing borrowers navigating remortgages, repayments, and interest obligations.
The Help to Buy equity loan scheme allows buyers to borrow up to 20% of a new build property’s value, or up to 40% in London, with a minimum 5% deposit required from the buyer. This structure provided the benefit of enabling thousands of first-time buyers to step onto the property ladder with significantly less upfront capital.
Our Help to Buy Services
First-Time Buyer Help to Buy Support
Comprehensive consultation for eligible first-time buyers who secured new build properties through the scheme. First-time buyers must not have ever owned a property or residential land anywhere in the world to qualify for the Help to Buy scheme. Our advisers guide clients through eligibility requirements, ensuring all criteria are met for a smooth purchase process.
Help to Buy Remortgage Advice
Specialist advice for existing Help to Buy customers looking to remortgage after five years of ownership. With over 104,000 Help to Buy accounts set to exit their interest-free period by 2030, many borrowers face important decisions about their equity loan. We provide clear options for keeping or repaying the loan during a remortgage, helping you understand the market value implications and long-term costs.
Help to Buy Regional Price Caps 2023
During the final phase of the buy scheme (April 2021 to March 2023), regional price caps determined the maximum property purchase price eligible for the equity loan. These caps reflected local house prices and affordability across different areas of England:
These regional price caps directly influenced the overall cost of buying a home through the scheme, as buyers could only purchase properties up to the capped value in their area, impacting affordability and the long-term financial implications for both buyers and taxpayers.
The scheme was closed to new applicants on 31 October 2022, and all purchases must be completed by 31 March 2023. Eligible properties under the Help to Buy scheme must hold a minimum Energy Performance Certificate (EPC) rating of B, ensuring buyers moved into energy-efficient new build homes.
When purchasing through Help to Buy, after your deposit and the government equity loan, the rest of the property price is typically covered by a repayment mortgage.
Impact of House Prices on the Scheme
The Help to Buy equity loan scheme is closely linked to movements in UK house prices. Because the equity loan is calculated as a percentage of your property’s market value, any change in house prices directly affects the amount you must repay. If house prices rise, the repayment amount on your equity loan increases; if house prices fall, the amount you owe decreases. This dynamic can make it challenging for buyers to plan ahead, especially if they have taken out a large equity loan.
A key risk associated with the buy equity loan scheme is negative equity. If the housing market declines and house prices drop below the outstanding loan and mortgage balance, buyers may find themselves owing more than their property is worth. This situation can make it difficult to sell, remortgage, or move up the property ladder, and may lead to financial strain. Homes England, which administers the scheme, has implemented measures to help mitigate negative equity risks, but buyers should remain aware of market fluctuations and their potential impact.
The Help to Buy equity loan scheme has also influenced the wider UK housing market. While it has helped many first time buyers access new build homes, some analysts argue that the scheme has contributed to rising house prices, particularly in high-demand areas. This has made affordability a challenge for some buyers, even as the scheme aimed to make homeownership more accessible. The overall impact of the buy scheme on the market varies by region and market conditions, but understanding the relationship between house prices, equity loans, and repayment obligations is essential for anyone with a Help to Buy equity loan.
Alternatives to the Help to Buy Scheme
With the closure of the Help to Buy equity loan scheme to new applicants, buyers still have several options to help them get on the property ladder:
Shared Ownership
This government-backed scheme allows buyers to purchase a share of a property (usually between 10% and 75%) and pay rent on the remaining share. It’s a flexible way for first time buyers to access homeownership with a smaller deposit and lower initial mortgage requirements.
Deposit Unlock
Designed for new build homes, Deposit Unlock enables buyers to purchase with just a 5% deposit, similar to the Help to Buy scheme. Instead of an equity loan, the lender provides a guarantee, making it easier to secure a mortgage without additional government borrowing.
Guarantor Mortgages & JBSp Mortgages
Guarantor Mortgages & Joint Borrower Sole Proprietor Mortgages: These options allow buyers to use the income or support of a family member or co-borrower to increase borrowing power and affordability, without the need for an equity loan.
Housing Association and Council Schemes
Local housing associations and councils often offer affordable housing initiatives, including shared equity or discounted purchase price schemes, to help buyers access new build or resale properties.
Other Financial Help
Additional options include Lifetime ISAs for saving towards a deposit, and government mortgage guarantee schemes that support buyers with smaller deposits.
The UK government has announced plans for a new scheme to support first time buyers, aiming to provide more flexibility and financial help for those looking to buy a home. Details are yet to be confirmed, but buyers are encouraged to seek professional advice to explore the best alternatives for their circumstances.
If you’re considering your next steps after the Help to Buy scheme, our advisers at SBS Finance can help you compare all available options and find the right solution for your property purchase.
Our Help to Buy Process
Step 1: Eligibility Assessment
We review your first-time buyer status and financial circumstances thoroughly. This includes confirming that the property purchase price falls within regional caps and that the home meets new build requirements. Understanding these criteria is essential for a successful application.
Step 2: Mortgage Planning
Calculate affordable mortgage amounts with the help to buy equity loan factored in. We access whole-of-market mortgage products suitable for Help to Buy purchases, comparing options from multiple lenders to secure competitive interest rate deals for your repayment mortgage.
Step 3: Application Support
Navigate the Help to Buy application process with participating builders and coordinate your mortgage application alongside legal processes. Our guidance ensures all documentation is correctly prepared, reducing delays and complications.
Step 4: Completion and Beyond
Support continues through completion, with ongoing advice on equity loan management. You will need to pay a monthly management fee of £1 until the equity loan is paid off. We provide future remortgage planning as you approach year five, preparing you for when interest begins and ensuring you understand your options to repay or retain the loan.
Customer Testimonials
“The guidance through the Help to Buy process made purchasing our first home straightforward. We understood exactly what the equity loan meant for our finances and felt confident throughout.”
Sarah T.
First-Time Buyer, Hampshire
“As our five-year interest-free period approached, we needed clear advice on remortgaging options. The team explained our choices for repaying the equity loan or keeping it in place, helping us make the right decision for our circumstances.”
David and Emma R.
Help to Buy Remortgage Clients, London
Frequently Asked Questions
Contact Us
Get Started with Help to Buy Advice
Whether you have an existing Help to Buy loan approaching its sixth year or you’re exploring alternatives now that the scheme has closed, our experts provide clear, practical guidance. Our initial consultation process typically takes around 2 hours, giving us time to understand your circumstances and explain your options thoroughly.
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03456 461 941Address
Unit 314, Solent Business Centre, 343 Millbrook Road West, Southampton, Hampshire, United Kingdom. SO15 0HWSee the regulatory information in the website footer.