Help to Buy Calculator 2026
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Understand the Help to Buy equity loan scheme. Calculate your required mortgage, deposit, and equity loan combination. The scheme is now closed in England but remains active in Wales on new-build homes up to £300,000. Indicative monthly mortgage cost is shown at a standard rate for illustrative purposes.
Property Details
Based on 5.5% rate over 25 years on the mortgage portion only. Equity loan payments not included (interest-free for 5 years, then fees apply).
How the Help to Buy Equity Loan Worked
The Help to Buy equity loan reduced the mortgage buyers needed by providing a government loan of up to 20% of the property price (40% in London). With a minimum 5% personal deposit, a buyer could access a 75% LTV mortgage, typically attracting better rates than a 95% mortgage and without the need for a very large deposit.
The equity loan was structured as a percentage stake in the property, not a fixed cash loan. If you borrowed 20% of £250,000 (£50,000) and the property later sold for £300,000, you would repay 20% of £300,000 (£60,000), not the original £50,000. Conversely, if the property fell in value, you would repay less.
The loan was interest-free for five years. From year six, a fee of 1.75% of the outstanding loan applied, rising each year with the Consumer Price Index (CPI) plus 2%. Borrowers who did not repay or sell within a few years found the ongoing fees added materially to their housing costs.
In Wales, the scheme continues. Buyers considering this route should seek independent financial advice to understand the long-term implications of the equity loan structure, particularly the repayment mechanics on sale.
| Property Price | 5% Deposit | 20% Equity Loan | 75% Mortgage | Monthly Payment |
|---|---|---|---|---|
| £200,000 | £10,000 | £40,000 | £150,000 | £921 |
| £250,000 | £12,500 | £50,000 | £187,500 | £1,151 |
| £300,000 | £15,000 | £60,000 | £225,000 | £1,381 |
Help to Buy (equity loan) closed to new applicants in England in October 2022, with all English loans repaid by March 2023. The scheme remains active in Wales for new-build properties up to £300,000, with an equity loan of up to 20% of the purchase price. Alternatives in England include the Mortgage Guarantee Scheme, First Homes, and shared ownership.
In Wales, the government lends you up to 20% of the purchase price of a new-build home. You need a minimum 5% deposit and a mortgage for the remainder. The equity loan is interest-free for the first five years. From year six onwards, a fee of 1.75% of the outstanding loan applies, rising annually with CPI plus 2%. You repay the loan as a percentage of the sale price, not the original cash amount, so the government shares any house price gains or falls.
In London, the equity loan was up to 40% of the purchase price, enabling buyers to access lower mortgage rates with a smaller personal deposit. The maximum property price in London was £600,000 under the scheme. The London scheme is now closed to new applicants. Buyers in London may now consider shared ownership or the First Homes scheme as alternatives.
When you sell, the equity loan is repaid as a percentage of the sale price. If you took a 20% equity loan and later sell for more than you paid, you repay 20% of the higher sale price. If the property falls in value, you repay only 20% of the lower price. This means the government shares in both gains and losses. You can also repay the equity loan early without selling (minimum repayment is 10% of the market value).
Current options in England include: the Mortgage Guarantee Scheme (government underwrites 91-95% LTV mortgages from participating lenders, available to all buyers not just first-timers); First Homes (new-build homes sold to first-time buyers at a 30-50% discount to market value, discount preserved in perpetuity); and shared ownership (buy a share of a housing association property and pay rent on the rest). Check the government's own home ownership schemes page for the latest eligibility details.