Now closed to new applicants, the Help to Buy: Equity Loan was a government-backed scheme aimed at first-time buyers looking to buy a newly built home.
The scheme was created to keep mortgage payments lower and deliver other benefits, such as giving you access to a wider range of mortgage products. If you were able to offer a deposit of 5% of the home’s total value, you could borrow up to 20% (outside London) or 40% (in London) of your home’s value from the government. This loan was interest-free for the first five years.