Help to Buy schemes

We support the following government Help to Buy schemes to help your first time buyer and mover clients buy their new home:

  • Help to Buy: equity loan
  • London Help to Buy
  • Help to Buy: ISA

We also support the Forces Help to Buy scheme but currently this is only available through our branch and telephone channels.

Help to Buy: equity loan

Our Help to Buy: equity loan scheme is available on new build properties in England only (not currently available in Scotland and Wales).

Key criteria

  • Repayment only - maximum term of 35 years.
  • Available on new build houses/flats in England up to a purchase price of £600,000.
  • Must be your client’s only property.
  • Acceptable sales incentives include stamp duty, reasonable legal fees and fixtures and fittings. Due to scheme rules no cash incentives are permitted.
  • Minimum 5% deposit.
  • Maximum 75% LTV.
  • The remainder (up to 20%) of the loan is funded by the government through an equity loan, which is interest-free for the first five years. Interest is charged from year six and the equity loan will run for 25 years (unless your client chooses to pay it back sooner).
  • Our affordability calculator factors in 2% of the equity loan as an expense.

Evidence

  • Before submitting a Help to Buy full mortgage application, you must ensure your client has received the Authority to Proceed (ATP) document from their local Help to Buy agent.

Useful links

London Help to Buy

The London Help to Buy scheme is available on new build properties in Greater London only.

Key criteria

  • Repayment only - maximum term of 35 years.
  • Available on new build houses/flats in Greater London (plus city of London) up to a purchase price of £600,000.
  • Must be your client’s only property.
  • Acceptable sales incentives include stamp duty, reasonable legal fees and fixtures and fittings. Due to scheme rules no cash incentives are permitted.
  • Minimum 5% deposit.
  • The remainder (up to 40%) of the loan is funded by the government through an equity loan, which is interest-free for the first five years. Interest is charged from year six and the equity loan will run for 25 years (unless your client chooses to pay it back sooner).
  • Our affordability calculator factors in 2% of the equity loan as an expense.

Evidence

  • Before submitting a Help to Buy full mortgage application, you must ensure your client has received the Authority to Proceed (ATP) document from their local Help to Buy agent.

Useful links

Help to Buy: ISA

The Help to Buy: ISA is a government scheme designed to help first time buyers (FTBs) save regularly towards a deposit for their first home. It’s a tax-free savings account offering a 25% bonus paid by the government when they purchase their home.

For more information on the scheme rules visit www.helptobuy.gov.uk/isa

Key criteria

  • Available to FTBs purchasing a UK residential property only.
  • Bonus available on purchases up to £250,000 outside of London and up to £450,000 in London.
  • Maximum government bonus of £3,000 on a balance of £12,000 per person applies. If two FTBs are purchasing together, they can both have an individual Help to Buy: ISA. That’s a combined reward of up to £6,000.
  • To be eligible for the minimum government bonus of £400, the customer must have a minimum balance of £1,600 saved in their Help to Buy: ISA.
  • Holding a Help to Buy: ISA does not guarantee a customer a mortgage in the future.

All conveyancers on our panel have been invited to join the scheme, they can register directly with Lender Exchange

Submitting an application on Introducer Internet

  • Within Introducer Internet > full mortgage application > loan required > loan deposit details, select ‘Help to Buy: ISA’ as the source of deposit.
  • Make sure you enter the total ISA amount including the bonus.
  • Please select this option even if your client’s deposit is coming from other sources in addition to the HTB: ISA. Make sure you enter the combined total deposit amount.