Aspiring self-builders with deposits from 5% can access a new scheme to deliver their dream home. The Help to Build equity loan scheme was launched in late June. The scheme uses a £150 million fund from the government that allows for low-deposit mortgages through equity loans. These can cover either self-build or custom-build. This is the sector’s equivalent of the Help to Buy scheme and is available for 4 years.
But before you start to consider the opportunities, consider the rules and requirements which are as follows:
- The equity loan amount can be between 5% and 20% of the total estimated project cost (the amount is higher in London
- Self-builders can spend up to £600,000 on the new home
- The newly built home should be your only home upon completion
The steps to apply for the scheme are simple:
- Secure a self-build mortgage, from a lender registered for Help to Build, or through a broker.
- Apply for Help to Build through Homes England
- If your application is successful, you’ll receive an equity loan offer based on the estimated cost to buy a plot of land (if needed) and build the home.
- When your home is complete, Homes England will pay the equity loan to the registered lender.
Remember, before you apply, you’ll need outline planning permission from the local authority for the land you want to build on. You can find a plot for your dream home using South Gloucestershire Council’s self-build database. The government has provided a comprehensive guide which answers all questions about Help to Build . There are also various social media sites with information about Help to Build, including Facebook and Twitter.