Equity Loan Calculator
Estimate your Help to Buy equity loan, required deposit, and remaining mortgage amount. Plan your UK property purchase with clarity.
Calculate Your Equity Loan Breakdown
Enter the property price and your preferred deposit percentage to see exactly how much you can borrow through an equity loan and the mortgage you will need.
Property & Loan Details
Enter your purchase specifics
Finance Evaluation
Estimated purchase breakdown and future fees
Help to Buy Equity Loan Rules
Key parameters and fee structures for the UK government’s equity loan scheme.
| Parameter | Outside London | London |
|---|---|---|
| Maximum Equity Loan | 20% of purchase price | 40% of purchase price |
| Minimum Cash Deposit | 5% of purchase price | 5% of purchase price |
| Required Mortgage | Up to 75% of purchase price | Up to 55% of purchase price |
| Years 1–5 Fee | 0% (Interest-free) | 0% (Interest-free) |
| Year 6 Fee | 1.75% of loan value | 1.75% of loan value |
| Year 7+ Fee | 1.75% + CPI + 1% annually | 1.75% + CPI + 1% annually |
Equity Loan FAQ
Answers to the most frequently asked questions about Help to Buy and home equity loans in the UK.
The government lends you up to 20% of the cost of a newly built home (or up to 40% in London). You need a minimum 5% cash deposit, and the remaining 75% (or 55% in London) is covered by a standard mortgage. The equity loan is interest-free for the first 5 years.
After the initial 5-year interest-free period, you are charged a fee of 1.75% of the loan’s value in year 6. This fee increases each subsequent year by the Consumer Prices Index (CPI) plus 1%.
Yes, you can repay the equity loan early, either in part (usually a minimum of 10% of the property’s current market value) or in full. This is typically done through remortgaging or using personal savings.
The equity loan percentage is fixed at the time of purchase, but the monetary amount you repay is based on the property’s market value at the time of repayment. If the property value increases, the repayment amount increases proportionally.