The Help to Buy: Equity Loan was a government scheme that lent first-time buyers up to 20% of the purchase price (40% in London) of a new-build home, interest-free for the first 5 years. The final version of the scheme (2021–2023) closed to new applications in October 2022 and to final completions in March 2023.
Existing equity loans
If you have an existing Help to Buy equity loan, you must repay it when you sell, when you pay off your main mortgage, or at the end of your mortgage term. After year 5, you pay a fee that rises annually. Consider repaying early if property values have fallen, as the loan is percentage-based.
What now?
For first-time buyers today, the main government-backed options are the Lifetime ISA (25% bonus on savings used for a first home up to £450,000) and the Mortgage Guarantee Scheme. Check gov.uk for current first-time buyer support.