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New Help to Build Scheme

The Government have just announced the launch of a new ‘Help to Build’ scheme aimed to assist self-builders in England to access mortgages with lower deposits.

The scheme is similar to the ‘Help to Buy’ scheme which was popular among First Time Buyers, however this is available for self-builders and those involved with ‘custom-build’ projects working alongside professional builders.


Applicants will need to be either building their own home, or working alongside a professional development team of builders who taking on the project and are building the property.

Those who can qualify for this new scheme must have a 5% deposit which will allow the Government to offer what’s known as an equity loan which can be between 5-20% of the total estimated cost of the build. This scheme covers projects up to £600,000 and the remainder of the project cost is covered by a ‘self-build’ mortgage.

Much like the Help to Buy scheme, the equity loan will be interest free for the first 5 years and those who are granted the loan will have 3 years to buy the land and build their home.

The total amount of the loan will depend on the estimated costs of the plot of land and the actual build of the home, also the amount that the buyers will pay back either at the end of their mortgage agreement or if they go on to sell the property sooner, or perhaps remortgage after their first fixed term agreement is up. This will all be calculated as a percentage of the properties market value at the present time.

Specialist mortgage providers have stated it will provide ‘a major boost’ to the self and custom build sector as the Government have allocated £150 million to help fund the scheme over the next 4 years.

Applications for the new Help to Build Scheme will open winter 2021 and the Government hopes it will aid and encourage more homes to be build that fit the buyer’s needs in various ways, whether this is the size, location, aesthetic or sustainability of the property.