Help to Buy Example

The following is an example of a repayment mortgage on a £199,950 property bought under the Help to Buy scheme.

Price (75% LTV)


 20% Equity Loan


Own Deposit




Fixed at 1.59%
to 2/5/21


Reverting to SVR
of 4.00%



35 years

(The overall cost for comparison (APRC) is 3.7% APR)

Please note the following:

  • The monthly payments are calculated on a 35 year repayment mortgage
  • Correct at 8th February 2019
  • Maximum mortgage is calculated as 4.5 times income
  • Early repayment charges apply during initial rate period
  • Mortgage is fixed at 1.59% until 2nd May 2021 (26 months); SVR  for 394 months
  • Deposit is 5% of the full purchase price
  • The equity loan is interest free for the first five years. After that, you will pay a fee of 1.75%, rising annually by the increase (if any) in the Retail Price Index (RPI) plus 1%.
  • The equity loan must be repaid after 35 years, or earlier if you sell your home. You must repay the same percentage of the sale as the initial equity you borrowed e.g. 20%.
  • Valuation fee does not apply and arrangement fee is £999, assumed added to loan
  • All mortgages are subject to availability and status
  • Total cost of credit is £269,030


This does not represent a recommendation and does not contain all the information needed to choose a mortgage. Please ask for a personal illustration.

Your home may be repossessed if you do not keep up repayments on your mortgage.

There will be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1% but a typical fee of 0.3% of the amount borrowed. If however you arrange a mortgage on a property from one of our associated new homes developers, we will waive this fee.

Help to Buy Calculator

All you need is a 5% deposit to secure your home, with up to 20% of the property value provided by an equity loan from the Government and a mortgage of up to 75% from a bank or building society.


Deposit Required (5%)


Help to Buy Loan (20%)


Your Mortgage (75%)


Total Interest


Monthly Repayment

This calculator is provided for informational purposes only.
You should not make any decisions based simply on the information provided.
Values indicated are estimates and may not be accurate and are only to be used as a guide.

Help to Buy Explained

Help to Buy equity loans are open to anyone buying a new build home, whether you are a first time buyer or moving house. The new home you wish to buy must be no more than £600,000 and it must be your only property and the one you live in, you cannot use the scheme to buy-to-let.

How it works
You’ll need to have a deposit of at least 5% of the property price. The government will give you a loan for up to 20% of the price and you won’t be charged fees for the first 5 years of owning your home. But, you will need a mortgage of up to 75% to cover the rest.

In the sixth year, you’ll be charged a fee of 1.75% of the loan’s value. After this, the fee will increase every year. The increase is worked out by using the Retail Prices Index plus 1%. You must also pay back the loan after 25 years or when you sell your home – whichever is earliest. How much you pay back will depend on the market value of your home when it’s sold. You can pay back part or all of your loan at any time. The minimum percentage you can pay back is 10% of the market value of your home. The amount you pay will depend on the market value at that time.

If you would like to know more about the Help to Buy scheme, our helpful independent financial advisors are on hand to guide you through the process.

View the Help to Buy video