Get in touch

Speak to us now on live chat

Speak to someone on the phone

We can call you

Send us an email

Go Back

Call us today:

020 8115 4286

If you wanted to speak to a local expert, please go here to contact a specific branch.

Please provide us with the below details and one of our local experts will be in contact.

Please provide us with the below details and one of our local experts will be in contact.

All done

Thank you for providing us with your contact details, one of our local experts will be in contact.

Get in touch
  • Speak to us now on live chat
  • Speak to someone on the phone
  • We can call you
  • Send us an email
Go Back

Please provide us with the below details and one of our local experts will be in contact.

Go Back

Please provide us with the below details and one of our local experts will be in contact.

Go Back

Call us today:

020 8115 4286

If you wanted to speak to a local expert, please go here to contact a specific branch.

Go Back

All done

Thank you for providing us with your contact details, one of our local experts will be in contact.

Contact Help to buy: Equity Loan

Fill in the form below to get in touch

Sales or Lettings enquiry

Your Details

We will use your data for the purpose of your enquiry. After we have responded, we would also like to send you emails with information on our other products and services, including our regular newsletter which contains special offers, property photos, hot topics and useful tips.
Please tick this box if you are happy to receive this and remember you can change your preferences at any time. If you would like to know more about how we use your data please visit our Privacy Notice here

All done

We received your message. Our expert local team will review your details and get back to you shortly.

If you need any more information call us on

Contact Brentford area

Fill in the form below to get in touch

Your Details

We will use your data for the purpose of your enquiry. After we have responded, we would also like to send you emails with information on our other products and services, including our regular newsletter which contains special offers, property photos, hot topics and useful tips.
Please tick this box if you are happy to receive this and remember you can change your preferences at any time. If you would like to know more about how we use your data please visit our Privacy Notice here

All done

We received your message. Our expert local team will review your details and get back to you shortly.

If you need any more information call us on

Property Search Request Valuation
Search
Call us 02080225147
Buy New Homes Rent
Rent
Buy
New homes
{{ displayPropertyFilter.displayPlace }}
Search
{{ computedMinPrice }} to {{ computedMaxPrice }}
{{ minPriceOption.label}}
{{ maxPriceOption.label}}
{{ inputPropertyFilter.minRooms == 0 ? 'Min Bedrooms' : inputPropertyFilter.minRooms + ' Bedrooms' }}
{{ roomOption.label }}
{{ inputPropertyFilter.propertyTypes.length == 0 ? 'Property Types' : inputPropertyFilter.propertyTypes.join(', ') }}
{{ propertyTypeOption.label }}
{{ inputPropertyFilter.propertyFilters.length == 0 ? 'More Filters' : inputPropertyFilter.propertyFilters.join(', ') }}
{{ propertyFilterOption.label }}
{{ displayPropertyFilter.displayPlace }}
Clear Filters
Update
Back
Search by location, postcode or keyword
{{ displayPropertyFilter.displayPlace }}
Price
{{ computedMinPrice }}
{{ computedMaxPrice }}
Number of beds
{{ roomOption.label }}
Property Type
{{ propertyTypeOption.label }}
Additional filters
{{ propertyFilterOption.label }}

Help to Buy: Equity Loan

Help to Buy Equity Loans to top-up mortgage borrowings
Made in Chelsea, in 1856 With over 160 years’ experience matching people and property throughout London, we’re not only one of London’s longest established agents, but also one of the most prevalent.
The best in the business Underpinned by a culture built on energy, agility, professionalism and knowledge, our local teams live and breathe our values. That means we go to great lengths to get the best results for our clients.
Local know-how, better results Our clients benefit from better results because we intimately understand - and are proud to be a part of - the communities in which we operate.

So you’ve managed the incredible task of saving a deposit for a house – congratulations! Affordability now comes into play, and many London home buyers find that they’re not able to borrow the full amount needed to purchase their dream home. To help first-time buyers step onto the property ladder, the government has introduced Help to Buy Equity Loans to top-up mortgage borrowings. The following guide will outline everything you need to know, and help you decide if this is the government scheme for you.

What is a Help to Buy Equity Loan?

A Help to Buy Equity Loan allows a purchaser to contribute a minimum of 5% deposit and borrow up to 40% as a government loan (20% if buying outside of Greater London). The remaining amount made up by a mortgage loan (up to 55%).

Who is eligible for a Help to Buy Equity Loan?

In order to apply for a Help to Buy Equity Loan, you must:

  •       Be a first-time buyer or a homeowner looking to move
  •       Not own any additional properties
  •       Be purchasing your primary residence
  •       Be purchasing a newly built home for up to £600,000

Current homeowners are not able to part-exchange their current home if taking out an equity loan.

How do I apply?

The London Help to Buy Equity Loan scheme is available on certain new-build properties. When enquiring to an agent, ask whether they have these available or look out for the Help to Buy logo on developments. Once an eligible property is identified, you apply for the scheme online.

What mortgage do I need?

Mortgages must be repayment only, and the amount borrowed mustn’t exceed 4.5 times household or individual income.

Calculating repayments on a Help to Buy Equity Loan

In order to calculate repayments on a Help to Buy Equity Loan, the staggered interest fee must be considered:

  1.          First five years = Equity loan is interest-free
  2.          Sixth year = 1.75% interest rate
  3.          Seventh year onwards = Interest is rate of inflation plus 1%

In addition, a £1 per month management fee applies from the date the property is purchased until the loan is paid off.

Can I pay off the equity loan?

Known as staircasing, it’s possible to repay all or part of an equity loan if affordability permits. A repayment must be a minimum of 10% of the property’s prevailing market value. If repayments are made after the initial five-year, interest-free period, then the interest fees charged will reduce to reflect the smaller loan percentage.

What if I want to sell the property before I have paid back the Help to Buy Equity Loan?

For properties sold before the equity loan has been repaid, the repayable amount to the government is calculated based on the current market value and the percentage borrowed. For example, if 30% was borrowed from the government, then 30% of the property’s current market value will be paid back, whether this amount has increased or decreased in size from the initial loan.

Are there any restrictions on Help to Buy properties?

A major restriction on Help to Buy properties is that they cannot be sublet. The exception to this rule is if the property owner is a serving member of the Armed Forces whose tour requires them to serve away from home for a fixed period. In this case, an application to sublet is submitted.

For more information on Help to Buy and government schemes available to you, take a look at our articles on Help to Buy ISAs, Lifetime ISAs and Shared Ownership. If you’re looking for a property eligible for a Help to Buy Equity Loan, speak to our New Homes team.

Why buy with us?

  • Over 160 years’ experience matching buyers to their ideal London properties
  • One point of contact, hundreds of properties for sale across London
  • People with wonderful properties – a team with experience, energy and excellence
  • Viewings and appointments at times that suit your schedule
  • Award-winning customer service every step of the way

Are you looking to buy your first property? Contact us

Marsh & Parsons is registered in England (Company No. 05377981) Registered office address: 80 Hammersmith Road, London, W14 8UD (VAT No. GB 842 7959 83) | Copyright © Marsh & Parsons 2018

Client Money Protection is provided by Propertymark. The redress scheme for Marsh & Parsons is The Property Ombudsman Scheme. Calls may be recorded and/or monitored for training and/or data protection purposes. We are members of The Property Ombudsman (TPO), there to protect your interests. We abide by the TPO code of conduct.

We may refer you to recommended providers of ancillary services such as Financial Services and Insurance. We may receive a referral fee for recommending their services. You are not under any obligation to use the services of the recommended provider, which may also be an associated company of Marsh & Parsons.