Help to Buy

Key things you need to know about the Help to Buy: Equity Loan scheme

• You may be eligible for a Government loan of up to 20% of the purchase price of your chosen home, interest-free for the first five years.
• You will need a deposit of a minimum of 5% and a maximum of 20% of the purchase price of your chosen home.
• You may only need a 75% mortgage.
• The scheme is only available on new build homes in England.
• The scheme is only available to first-time buyers (dependent on your financial circumstances).
• Skipton Properties builds in the Yorkshire and Humber region, in which only properties valued at £228,100 and under are eligible for the Help to Buy: Equity Loan scheme. The price cap varies by region throughout England.
• The scheme is only available for repayment mortgages, which are available from a variety of high-street lenders.
• The current scheme runs from 2021 to 2023.

Are you eligible?

• You must demonstrate that you have savings for the deposit, legal fees, stamp duty and cost of moving.
• You must be purchasing a new build property in the Yorkshire & Humber region worth £228,100 or less.
• You must have a good credit history.
• You must take into account the full cost of your borrowing (including your mortgage) and agree to repay the equity loan in full, plus interest and management fees.

For the first five years:

• The equity loan is interest-free and you pay a monthly £1 management fee

From year six:

• You pay the monthly £1 management fee and a monthly interest fee of 1.75% of the equity loan.
• The interest fee will rise each year in April by the Consumer Price Index (CPI), plus 2%.
• You will continue to pay interest until you repay your loan in full.

When will you have to pay it back?

The equity loan is for a maximum term of 25 years and must be repaid in full at the end of the loan term, when you pay off your repayment mortgage or when you sell your home.

Ts & Cs apply.

Would you like more information?

Visit the Government’s Help to Buy site here and read the latest homebuyer’s guide here.