What is Help to Buy: Equity Loan?

Help to Buy: Equity Loan was a government scheme that provided an interest-free equity loan of 20% of a new-build property's purchase price (40% in London) to first-time buyers with at least a 5% deposit, enabling them to obtain a 75% mortgage. The England scheme closed to new applications in October 2022 and final completions ended in March 2023. The loan is repayable on sale, full repayment or remortgage, or at the end of the 25-year term, at the prevailing percentage of the property's market value. Interest is charged from year six onwards, starting at 1.75% and rising annually.