Help to buy equity loan

These are for newly built properties only.

You pay for a new home by putting down a deposit of at least 5% and a mortgage of up to 75%. The rest of the purchase price (to a maximum of 20%) is paid by an Equity Loan from the government to you. The schemes are provided by local HomeBuy Agents.

The amount you borrow is calculated as a percentage share in your property. It is this percentage share you pay back.

You do not need to repay the Equity Loan until either you sell the property or the end of the term for the equity loan mortgage, whichever comes first. When you repay the Equity Loan you pay back a sum equal to the percentage share in your property you originally borrowed. This is based on the value of your property when you sell it and may be more than you originally borrowed.

You can also pay back some of your Equity Loan without selling your property. You can pay back either 10% or 20% or the total amount, so long as the loan is worth at least 10% of the value of your property. Your HomeBuy Agent can provide more details about this.

There are no additional loan fees to pay for Help to Buy Equity Loan for the first 5 years. After this fees at 1.75% of the amount of the loan is payable. This increases each year with the Retail Prices Index plus 1%. Your HomeBuy Agent will let you know when the fees are payable and arrange to collect them from you.

You will need the help of a Solicitor or Conveyancer to assist you in buying the property and to advise you on the details of the Help to Buy Equity Loan.

Who can apply for a home buy equity loan?

Help to Buy equity loans are open to both first-time buyers and home movers on new-build homes worth up to £600,000.

You won’t be able to sub-let your home and so the scheme cannot be used for buy to let properties. There are other forms of affordable housing to consider such as Shared Ownership.

Need help?

Contact your local HomeBuy Agent for more information about shared ownership properties in your area or visit their website at

Co-op Legal Services has a range of partners of specialist solicitors and conveyancers who are experts in all areas of affordable housing. They can guide you through the process and give you clear and simple explanations of what is involved.  

Conveyancing partner

Co-op Legal Services works closely with our conveyancing partners, to ensure they provide you with a high quality, fast and competitively priced service. Once you agree, you will become their client and they will undertake your conveyancing work. Our Approved Partner will confirm the contact information, experience and qualifications of anyone carrying out the work for you and will give you their terms of business.

We monitor the service our conveyancing partners provide to ensure it provides you with the service you would expect to receive. Our partners are fully regulated and authorised by the Council for Licensed Conveyancers and/or the Solicitors Regulation Authority. For introducing you, our conveyancing partners will pay Co-op Legal Services a referral fee. The amount of the referral fee may vary depending on the conveyancing partner. This is not added to your charges and you will not have to pay anything extra. It is paid directly by them to cover our marketing and administration costs.

About Co-op Legal Services

Co-op Legal Services has over 600 staff working in different businesses with offices in Manchester, Bristol, Stratford-upon-Avon, Sheffield and London.

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