Help to Buy: Equity Loan scheme 2021-2023

Equity Loan Scheme

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Scheme overview

The Equity Loan scheme is a new government initiative launched on the 1st of April 2021 that will run until March 2023. The scheme was created for first-time buyers and includes regional property price limits to ensure the scheme benefits those who need it most.

The scheme means that the government will lend first-time homebuyers up to 20% of the cost of a newly built home, this is increased to 40% due to higher house prices.

This new scheme begins as the previous Help to Buy: Equity Loan Scheme finished in March 2021.

The aim of the scheme is to help those who have found themselves unable to access affordable loan to value mortgages, as a result of not having enough money for a house deposit. First-time buyers in this position and over the age of 18 in England are eligible to apply for this scheme. At the moment this scheme only applies to people in England and cannot be used by those in Wales or Scotland.

It should be noted that, although that the loan can be applied for at any time, equity loans received between January and March require the payment of slightly less interest than loans later in the year.


You are deemed as eligible for the scheme if you:

  • aged 18 or older,
  • a first-time buyer,
  • in England.

You are not eligible if you:

  • own a home or land anywhere in the world now or in the past,
  • have had any form of sharia mortgage finance,
  • own a home bought with other people or inherited,
  • are married or in a co-habiting relationship, either now or on legal completion with anyone who owns or has owned a home or land anywhere in the world,
  • are buying a second home.

If you are married or in a co-habiting relationship, you will have to make a joint application with your spouse or civil partner and both live in the home having it as your only residence.

Price limits on housing

There are some set limits on the homes you can buy with an equity loan which differs depending on where you are in England.

RegionFull property price limit
East Midlands£261,900
North East£186,100
North West£224,400
South East£437,000
South West£349,000
West Midlands£255,600
Yorkshire and The Humber£228,100 (2021)

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