If you’re looking to buy your first home, one of the options that can assist in getting onto the property ladder is something called a Help to Buy: Equity Loan. This is a finance loan from the UK Government, specifically for first-time buyers in England who are purchasing a newly built home.

The Government provides an equity loan of up to 20% of the property value (up to 40% in London) while you make up the rest of the deposit. The loan is interest-free for 5 years and the remaining 75% of the total property cost will come from a mortgage provider.

One of the most popular elements of the loan is that in most cases, you only need a 5% cash deposit to buy your new home.

Help to Buy with Sanctuary

A Help to Buy: Equity Loan* gives you the advantage of sourcing a reduced mortgage and deposit than if you were buying outright by yourself, allowing you to find a home that better suits your needs, wants and budget.

Properties at our developments that are available with Help to Buy: Equity Loan will feature the logo. 

*Help to Buy is available subject to eligibility, terms and conditions.

An example

If the house you wanted to buy was £185,000 and it came with a Help to Buy option available, the Government could lend you 20% (£37,000), you would pay a 5% deposit (£9,250) and you’d need to arrange a mortgage to cover the remaining 75% (£138,750).

The amount you can be loaned depends on whereabouts you are buying in England, and you must buy from a homebuilder, like us, that is registered with the scheme.

The following price caps for Help to Buy apply from April 2021 until March 2023:

Region Maximum property price*

North East


North West


Yorkshire and the Humber


East Midlands


West Midlands


East of England




South East


South West


Help to buy calculator

Property value
Results with help to buy
Deposit required
Help to Buy loan
Mortgage required

The Mortgage Calculator provides an indicative guide to monthly costs only. The information provided does not constitute a recommendation for you to proceed and should not be relied on as confirmation of that you will be able to afford the repayments. Before proceeding you should carefully consider whether you will be able to afford the repayments for the entire term of your mortgage, including if your personal circumstances change.  

Sanctuary is not authorised or regulated by the Financial Services Authority to provide financial advice and you should always obtain your own independent advice and recommendations from an Independent Financial Adviser regarding shared ownership – including available mortgage products, affordability, interest rates, terms, conditions and methods of repayment. These matters will be outlined within a Key Features Information (KFI) document that your financial adviser and your mortgage provider will provide to you prior to entering into any commitment. In addition, you will also be required to appoint your own independent legal adviser to deal with your purchase.


The Help to Buy: Equity Loan however is only available to apply for until March 2023 and is only for first-time homebuyers looking to purchase a newly built property.

  • The percentage you borrow is based on the market value of your home when you buy it. If the market value of your home rises, so does the amount you owe on your equity loan while if the value of your home falls, the amount you owe on your equity loan falls too.
  • You do not pay interest on the equity loan for the first 5 years. You start to pay interest in year 6, on the equity loan amount you borrowed.
  • The equity loan payments are interest only, so you do not reduce the amount you owe.
  • You can repay all or part of your equity loan at any time. A part payment must be at least 10% of what your home is worth at the time of repayment.
  • You must repay your equity loan in full: (a) at the end of the equity loan term (b) when you pay off your repayment mortgage (c) when you sell your home (d) if you do not follow the terms set out in the equity loan contract and you are asked to repay the loan in full.
  • The amount you pay back is worked out as a percentage of the market value at the time you choose to repay.
  • The Help to Buy: Equity Loan is not available on shared ownership properties.

When you take out your equity loan you agree to repay it in full, plus interest and management fees, so before deciding if an equity loan is right for you, please consider the full cost of your borrowing:

  • For the first five 5 years the equity loan is interest free while you pay a £1 monthly management fee by Direct Debit.
  • From year 6 you will pay: the £1 monthly management fee, a monthly interest fee of 1.75% of the equity loan, the interest rate will rise each year in April by the Consumer Price Index (CPI) plus 2%, and you will continue to pay interest until you repay your loan in full.

For more information on a Help to Buy: Equity Loan you can visit their website or speak to one of our sales agents for more details. To view our properties available please visit our Development pages.

*Help to Buy is available subject to eligibility, terms and conditions.


For help finding your brand new home contact us