Help to Buy
Explore the different Help to Buy schemes around the UK and find out which one is right for you
What is Help to Buy?
Help to Buy is a government scheme. It's aimed to help people who are finding it hard to save enough to move up the property ladder or buy their first home.
House prices in the UK are quite high compared to the average salary. So many people struggle to save a deposit for a house or to get a mortgage that covers the cost of a property in their area.
They stopped taking new applicants for the Help to Buy ISA on 30 November 2019.
This has been replaced by the Lifetime ISA.
This is a similar scheme that helps you save to buy a home, or for retirement.
How does Help to Buy work?
You can use a Help to Buy ISA or a Help to Buy equity loan to make buying a property easier.
With a Help to Buy equity loan, the government will lend you money, interest free, for a fixed period of five years. You’ll start paying interest after this initial fixed period if your loan is not repaid.
With a Help to Buy ISA you set up your own ISA, which the government will then pay into.
London Help to Buy
As house prices in London are higher, you can get a Help to Buy equity loan of up to 40% of the value of a London property. This is interest free for the first five years.
Help to Buy shared ownership
Shared ownership is a scheme under the Help to Buy initiative, that lets you buy a share in your home. This is if you cannot afford a mortgage on 100% of a property.
Am I eligible for Help to Buy?
You can get an equity loan if you're:
a first time buyer
an existing homeowners
buying a new-build home that costs less than £600,000
This scheme is only available if you live in England.
There are similar schemes available in Scotland, Wales and Northern Ireland.
If you're buying a new home with a Help to Buy equity loan you cannot:
sublet your home or enter a part exchange deal on your old home
own any other property
own a home anywhere else in the world
You also need to:
be a UK resident
have a valid National Insurance Number
not have another active cash ISA alongside your Help to Buy ISA. (2)
To be able to get the government bonus on your Help to Buy ISA, your property must be:
in the UK
worth up to £250,000 outside of London
worth up to £450,000 in London
your only home
a property you intend to live in
bought using a mortgage
You can use a Help to Buy ISA as well as a Help to Buy equity loan, as long as you meet all the criteria for both schemes.
Is Help to Buy worth it?
Like any scheme or loan, there are benefits and downsides to Help to Buy.
Using Help to Buy calculators
Help to Buy calculators can help you work out if you can afford to buy a home through a Help to Buy scheme.
You'll need to enter:
where you’re looking to buy a home (in or out of London)
your annual income
the property price
The calculator will estimate how much you can borrow.
Help to Buy calculators do not look at things such as your outgoings, or other debts you may have.
You’d have to consider these things to work out if you can afford your repayments on your mortgage and equity loan.
The calculator will give you an idea of what you can afford with your deposit, income and potential Help to Buy loan.
Help to Buy (Wales)
In Wales, the Help To Buy scheme lets first-time buyers buy a new build home for up to £300,000 with as little as 5% deposit.
The government will loan you up to 20% of the purchase price, interest-free for five years. You’ll need to take out a mortgage on the rest.
After the first five years, you’ll be charged 1.75% interest on the loan. This will then increase by 1% plus any increase in the Retail Prices Index each year. There’s also a monthly £1 admin fee to pay.
You’ll have 25 years to pay off the loan in chunks (known as stair-casing) or all in one go.
The loan is based on a percentage of equity. So you could end up paying back more than you borrowed if the value of your home goes up.
Who's eligible?
To qualify for the scheme in Wales:
you must be buying your first home
the purchase price must be less than £300,000
you must buy the home from a builder who’s registered with the scheme
you'll need to put down a deposit of at least 5%
the deposit and mortgage must make up at least 80% of the purchase price
you must get the mortgage from a qualifying lender
You will not be able to sublet any part of your home under the scheme.
More about the Welsh Home to Buy scheme on the Welsh government website.

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Sources
The information on this page was sourced from HelpToBuy.gov unless otherwise stated below.
(1 and 2) MoneySupermarket