How does it work?

With this government-backed scheme it could be possible to buy your new home with as little as a 5% deposit.  That’s because on new homes costing up to £600,000 the Government will lend eligible buyers up to 20% of the price as a Help to Buy equity loan, meaning the deposit you’ll need to find is much less.

Not only will you need less savings, but because you’ll have a combined deposit of 25% – your 5% plus the 20% equity loan – you’re likely to get a better mortgage rate with lower repayments.

And the good news doesn’t end there! For the first five years, the equity loan is completely interest free, and from year 6 you’ll pay 1.75% of the loan’s value.  You can repay your equity loan anytime within 25 years or on the sale of your home, whichever is sooner.

Help to Buy is currently available for first time buyers and homeowners looking to make their next move. The home you buy must be your only residence – you won’t be able to rent it out – and any previous home in or outside of the UK must be sold before purchasing through Help to Buy.


Checking your financial eligibility

A company called Metro Finance will carry out checks to make sure you’re eligible for Help to Buy Equity Loan. At this point you’ll need show that you have funds to pay:

  • a reservation fee of £500
  • a deposit on exchange of contracts of at least 5% of
    the full purchase price (some mortgage lenders may require higher deposits)
  • other associated fees on completion (such as legal fees, stamp duty, mortgage fees).

Complete a Property Information Form

Next, you’ll need to fill in one of our forms to confirm details of your proposed purchase. We’ll need details about your mortgage (agreed in principle by your lender), deposit and household income. The Property Information Form also confirms your agreement for funds from your Help to Buy mortgage to be paid directly to us.


Reserve your plot

You can reserve your chosen plot by making a payment of £500. This can be paid by cheque or by online bank transfer.


Apply for the Help to Buy Equity Loan

At this stage, you’ll need to send the signed Property Information Form and a Reservation Form to the Help to Buy North West team. You can then apply for the equity loan online by going to www. Help to Buy North West will check that you can afford the mortgage, and that you’ve signed the declaration confirming that the home will be your only residence.


Buying your home

If your application is successful, you’ll receive an ‘Authority to Proceed’ from Help to Buy North West, usually within four working days. At this point, you should go ahead with your mortgage application (you should only submit your mortgage application once you have the ‘Authority to Proceed’ from Help to Buy North West). Finally, you’ll need to instruct a solicitor to act on your behalf to conclude the purchase.

What’s changing with Help to Buy?

More information about the Help to Buy Equity loan scheme, including more detail on rules and restrictions, can be found here:

Learn More