The equity loan scheme was developed by builders of residential homes in partnership with the UK government. When you can raise at least 5% of the deposit for your new home and pass the necessary affordability and credit checks for a mortgage, the government will supplement your deposit with a loan for an amount up to the additional 20%. This means you’ll be able to take out a mortgage for the remaining 75% of the cost.
The equity loan scheme was developed by builders of residential homes in partnership with the UK government. When you can raise at least 5% of the deposit for your new home and pass the necessary affordability and credit checks for a mortgage, the government will supplement your deposit with a loan for an amount up to the additional 20%. This means you’ll be able to take out a mortgage for the remaining 75% of the cost.
Equity loans are especially good news if you want to get on or move up the property ladder but can only raise a small deposit. However, it’s important to realise that although the equity loan is fee-free for the first five years, fees do begin to accrue from the sixth year onwards, and you must pay them in addition to the original sum borrowed. Also, you’ll need to pay them back the equity loan when you sell your home or after 25 years, whichever happens first.
In order to buy a home with an equity loan, you’ll need to get it from an approved builder registered on the Help to Buy scheme. Once you’ve decided to go ahead, Zing can put you in contact with the Help to Buy agent in your area.
Our database contains thousands of mortgage deals, so we’ll have no trouble matching your requirements with the right product. And our friendly advisers will be there for you every step of the way, from discussing affordability to arranging income protection. We can also help if you’d like to discuss other affordable housing options.
