5 years of the Help to Buy: Equity Loan scheme

24 September 2018

It’s been 5 years since the launch of the government’s Help to Buy: Equity Loan scheme back in April 2013. In that time over 169,000 properties have been bought with the help of an equity loan, with the total value of these loans at almost £9bn. 81% of the people it’s helped have been first time buyers. 

The scheme is designed to make it much more affordable for people to get onto or progress up the property ladder.  It’s available on new builds in England and Wales until 2021. To be eligible your customer will need a 5% deposit and the government will lend them up to 20% of the property price, or 40% for a property in London. The remaining 75% of the property price will be covered by a standard mortgage, meaning they’ll have access to better rates. 

The equity loan is interest free for the first 5 years, so those who took out a Help to Buy: Equity Loan in the first year it launched will be looking at additional interest being charged from this year on an increasing scale.

View our infographic to find out more about the take up of the scheme to date.

At Bank of Ireland for Intermediaries we accept Help to Buy: Equity Loans as a deposit on new builds. Speak to our dedicated new build team on 0345 606 1641* or visit our new build page to read more.

Source: Gov.uk Help to Buy (Equity Loan scheme) and Help to Buy: NewBuy Statistical Release, August 2018. Data to 31 March 2018. Figures based on Help to Buy: Equity Loan (1 April 2013 - 31 March 2018), and Help to Buy: NewBuy (12 March 2012 - 31 March 2018).