If I have a Poor/Bad Credit Profile will I still qualify for a Help To Buy Mortgage ??  YES call us now 03452 605506


The Help to Buy Equity Loan

This is designed to help first time buyers get on the property ladder and to purchase a new build home.  The following rules apply for you to be eligible;

  1. It must be a New Build property
  2. A maximum purchase of £600,000 in England and £300,000 in Wales will apply
  3. This must be the only property that you own
  4. The property cannot be rented out or sub-let after you purchase the property

Enquiry Form

If you wish to proceed with a mortgage enquiry please click the button below to go to our enquiry form.

The overall cost for comparison is 5% APR. The actual rate available will depend on your circumstances. Ask for a personalised illustration.

How it Works

  1. You need a 5% deposit
  2. The Government will lend you up to 20% ( up to 40% in London ) on a low interest loan towards your deposit. This is called an equity loan.
  3. You need a mortgage of up to 75% for the rest (up to 55% in London)
  4. You must purchase the property from a registered Help To Buy Builder – your Help to Buy agent should have a list.
  5. You will have to pay equity loan fees, but not for the first 5 years
  6. You must repay the loan after 25 years
  7. You can repay part of the loan, at any time, with a minimum lump sum of 10% of the loan

Bad Credit?

  1. One of the very positive points of using the Government Equity Loan plan is the very attractive aspects that you will enjoy from the impact that the scheme  has on the Bad Credit that the lender will accept. The lender will base their decision to lend  based on a 75% LTV mortgage where they can be a little more flexile with the underwriting and the terms of the mortgage will reflect the lower risk to the lender and are therefore more attractive.

Additional Information for the Government Help to Buy Website

1. Overview

You may be able to get financial help from the government to buy a home.

You could get:

The Help to Buy mortgage guarantee scheme closed at the end of 2016.


Buying your council or housing association property

There are also schemes for council tenants and housing association tenants.


2. Help to Buy equity loan

You can get a low-interest loan towards your deposit. This is called an equity loan.



The home you buy must:

  • be a new build
  • have a purchase price of up to £600,000 in England (or £300,000 in Wales)
  • be the only one you own
  • not be sub-let or rented out after you buy it
  • be one that you can show you can’t afford (if you’re applying in Wales)


How it works

With an equity loan:

  • you need a 5% deposit
  • the government will lend you up to 20% (up to 40% in London)
  • you need a mortgage of up to 75% for the rest (up to 55% in London)

You must buy your home from a registered Help to Buy builder – your agent should have a list.


For a £200,000 propertyAmountPercentage
Cash deposit£10,0005%
Equity loan£40,000 (£80,000 in London)20% (40% in London)
Mortgage£150,000 (£110,000 in London)75% (55% in London)


Equity loan fees

You’ll have to pay equity loan fees, but not for the first 5 years.

In the sixth year, you’ll be charged a fee of 1.75% of the loan’s value. The fee then increases every year, according to the Retail Prices Index plus 1%.

Your Help to Buy agent will contact you to set up these monthly fee payments. You’ll also get a statement about your loan each year.

Fees don’t count towards paying back the loan.


Paying back the loan

You must pay back the loan after 25 years or when you sell your home – whichever comes first. The amount you pay back depends on how much your home is worth (the market value).



Market value of your homeEquity loanAmount
Bought for £200,00020%Borrowed £40,000
Sold for £250,00020%Pay back £50,000

You can pay back part or all of your loan at any time. The smallest repayment you can make is 10% of the market value of your home.



Market value of your homePercentageAmount
Bought for £200,000Borrowed 20%£40,000
Value at time of payment £220,000Paying back 10%£22,000


How to apply

Apply through the:


3. Help to Buy ISA

If you’re saving to buy your first home, the government will top up your savings by 25% (up to £3,000). If you’re buying with someone else, they can also get a Help to Buy ISA.

You don’t have to pay it back.



The home you buy must:

  • have a purchase price of up to £250,000 (or up to £450,000 in London)
  • be the only home you own
  • be where you intend to live

You can use the scheme with an equity loan.

How it works

Your first payment to your ISA can be up to £1,200 and then you can pay up to £200 each month. When you buy your property, your solicitor or conveyancer will apply for the extra 25%.


Your savingsGovernment paymentTotal
£1,600 (minimum)£400£2,000
£12,000 (maximum)£3,000£15,000
How to apply

Apply to one of the following providers:


4. Buying through shared ownership

You can get a shared ownership home through a housing association. You buy a share of your home (between 25% and 75%) and pay rent on the rest.

There are different rules in Northern Ireland and Scotland. Contact your local authority to find out about buying a shared ownership home in Wales.


You can buy a home through shared ownership if your household earns £80,000 a year or less (or £90,000 a year or less in London) and any of the following apply:

  • you’re a first-time buyer
  • you used to own a home, but can’t afford to buy one now
  • you’re an existing shared owner
How it works

Shared ownership properties are always leasehold.

Older people

If you’re aged 55 or over you can buy up to 75% of your home through the Older People’s Shared Ownership (OPSO) scheme. Once you own 75% you won’t pay rent on the rest.

Disabled people

You can apply for a scheme called home ownership for people with a long-term disability (HOLD) if other Help to Buy scheme properties don’t meet your needs, for example you need a ground-floor property. With this scheme you can buy up to 25% of your home.

If you’re disabled you can also apply for the general shared ownership scheme and own up to 75% of your home.

Buying more shares

You can buy more of your home after you become the owner. This is known as ‘staircasing’.

The cost of your new share will depend on how much your home is worth when you want to buy the share.

It will cost:

  • more than your first share if property prices in your area have gone up
  • less than your first share if property prices in your area have gone down

The housing association will get your property valued and let you know the cost of your new share. You’ll have to pay the valuer’s fee.

Selling your home

If you own a share of your home, the housing association has the right to buy it first. This is known as ‘first refusal’. The housing association also has the right to find a buyer for your home.

If you own 100% of your home, you can sell it yourself.

How to apply

To buy a home through a shared ownership scheme contact the Help to Buy agent in the area where you want to live.