Help To Buy

The Government-backed Help to Buy Equity Loan Scheme – move in or move up with as little as 5% deposit

We are delighted to have been approved to offer the Help to Buy Equity Loan Scheme to our customers. This new initiative is available to first time buyers and existing homeowners, and combines a low 5% deposit with a 20% equity loan from the Government and a 75% mortgage from a commercial lender.

Once you’ve found your ideal home, you put down a deposit of 5%, and the Government provides you with an equity loan of up to 20% of the value of the property. That loan is interest free for the first 5 years, and can be repaid at any time within 25 years (or the term of the mortgage), or on the sale of the property. You secure a mortgage for the remaining 75% in the usual way, but usually at much lower rates than you would be eligible for with a 95% mortgage.

Example: for a home with a £200,000 price tag


Help to buy example: 5% Deposit (£10,000) + 20% Government Loan (£40,000) + 75% Mortgage (£150,000)


Certain conditions apply:

  • Only available on new build homes
  • Your mortgage must be capital repayment (not interest only)
  • The property purchased must be your only residence.  It is not available to assist buy to let investors or those who will own any property other than their Help to Buy property after completing their purchase.
  • Your property cannot be worth more than £600,000

For more information (including advice on fees and paying back the Government loan) please download the Help to Buy: equity loan buyers’ guide.  Alternatively please contact Chichester Developments and we will be happy to help.

Help to buy Buyers' Guide