Help-to-Buy Equity Loan Calculator

The Help-to-Buy Equity Loan Scheme is designed to help first-time buyers and homeowners purchase a property in England with a smaller deposit. Under this scheme, the government lends a percentage of the property’s value as an equity loan, which must be repaid when you sell the home or reach the end of the loan term.

This Help-to-Buy Equity Loan Calculator helps you understand how much you might borrow, the potential future value of your property, and the estimated repayment amount.

To use the calculator:

  1. Enter the property price – The purchase price of the property you intend to buy.
  2. Input the deposit amount – The amount you plan to put down as a deposit.
  3. Enter the equity loan percentage – The percentage of the property’s value you want to borrow through the Help-to-Buy scheme (e.g., 20%).
  4. Specify the expected annual home value increase – An estimate of the annual increase in the property’s value (e.g., 2% per year).
  5. Enter the number of years – The number of years you plan to keep the property or the duration of your equity loan.

Examples:

  1. Example 1: You plan to buy a property worth £300,000 with a deposit of £15,000. You want to borrow 20% through the Help-to-Buy scheme. You expect the property value to increase by 2% per year and plan to keep the property for 5 years:
    • Property Price (£): 300000
    • Deposit (£): 15000
    • Equity Loan Percentage (%): 20
    • Expected Home Value Increase (% per year): 2
    • Number of Years: 5
    • The calculator will show the equity loan amount, estimated property value after 5 years, and the repayment amount.
  2. Example 2: You are buying a property worth £250,000 with a deposit of £20,000 and borrowing 15% through the scheme. You expect a 3% annual increase in value and plan to keep the property for 7 years:
    • Property Price (£): 250000
    • Deposit (£): 20000
    • Equity Loan Percentage (%): 15
    • Expected Home Value Increase (% per year): 3
    • Number of Years: 7
    • The calculator will show the relevant details based on your inputs.

UK Help-to-Buy Equity Loan Calculator

Important Information

  • Repayment Amount: The repayment amount is based on the future value of the property. If the property’s value increases, the amount you repay will also increase.
  • Interest Payments: Remember that after the initial interest-free period (usually 5 years), interest will be charged on the Help-to-Buy loan.