Many of you may already be aware of the Help to Buy scheme that was introduced back in 2013, but there are different versions of Help to Buy that are available, not just for those who are first-time buyers.
The Help to Buy Equity Loan is excellent for those looking to move home into a new build property that is no more than £600,000, but who are struggling to find the funds for a deposit. Perhaps your current home has not gone up in value enough to fund the deposit for your next move. Or perhaps the price jump between your current home and the new house you want to move into is too high. This is the case for many flat owners looking to move into a house, as figures released from Zoopla showed that the price difference between a flat and a house is increasing, as over the past decade flat prices have gone up by 15% and house prices are up 21%.
For the Equity Loan, as long as you have a 5% deposit, you can borrow 20% of the purchase price, interest-free for the first five years. After the first five years you will pay an additional fee as interest of 1.75%, rising annually by the increase (if any) in the Retail Price Index (RPI) plus 1%. For those in the London area, you can borrow up to 40% of the purchase price.
So if you already own a small property and are looking to move up the ladder and into a new build, then the Equity Loan could give you the boost you need to help get you to where you want to be, without having to wait and build up your savings first.
Finding the deposit is still the largest challenge many buyers are faced with, and since the scheme started, almost two in ten applicants are already existing homeowners in need of that extra bit of help to move them up the housing ladder.
Mortgage Guarantees
Another option for those with a good credit score who are looking to move into either a new build or an older property, is the government-backed mortgage guarantee.
If you have a deposit of at least 5% and are either a first-time buyer or looking to move on to another property, then with the help of this guarantee, banks and building societies will be encouraged to lend you a mortgage. However, this scheme is only available until 31st December 2016.
For more information about the Help to Buy schemes, please visit the government website here or speak with a professional mortgage broker who can talk you through all the relevant terms and conditions.
Why speak to a mortgage broker?
If you’re saving hard to secure your deposit for either your first home or your next home, then you would be a lot closer to moving than you think. To learn more about the ins and outs of the Help to Buy schemes, Mortgage Advice Bureau can help.
Not only can our trusted advisers explain exactly how the scheme works but we also have access to over 11,000 different mortgage products from 90+ lenders, so you aren’t restricted in the options that are available to you.
Let us take the work off of your hands, and get in touch today to arrange an appointment with one of our expert mortgage advisers. We offer appointments either face-to-face or over the phone; whatever suits you best.
Paul Wood is from Pygott and Crone – for further information call: 0800 917 7404
Email: info@pygott-crone.com or visit: www.pygott-crone.com
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 is £395.
For more company news and insights from Pygott & Crone, click here
Latest news
Understanding rent reviews and increases
The Renters' Rights Act 2025 introduced a clear and structured framework for rent increases in England's private rented sector that every tenant should understand.
Mortgage rates and refinancing decisions
Mortgage rates continue to be one of the biggest considerations for homeowners, buyers and landlords planning their next move.
Price your home right: The foundation of success
Every detail in a property sale—from photography and listing descriptions to viewings and negotiations—operates within the framework created by the asking price.
First-time buyer essentials: What you need to know
First-time buyers accounted for approximately 36% of all mortgaged property purchases in the UK in 2025, making them the largest single group of buyers in the market.
