Help to Build: Equity Loan
If you applied for a Help to Build: Equity loan
You can no longer apply for a Help to Build: Equity Loan for properties in England.
You may still be able to:
There’s no government-backed loan to help build homes in Northern Ireland. You can read about raising money to build your own home in Northern Ireland.
If you applied on or before 31 March 2025
Your application can only go ahead if all of the following apply:
- Homes England received it on or before 31 March 2025
- Homes England issues you a formal mortgage offer by 30 April 2025
- you accept the formal mortgage offer by 31 May 2025
You can still view your application and make changes to it if you applied on or before 31 March 2025.
What happens next
If you’re approved for an equity loan, and for your mortgage, Homes England will ask if you still want to go ahead with your project.
After you accept their offer, you can start building the home.
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The mortgage lender will give you parts of the mortgage at various stages of the build (you can make a plan for this when getting the mortgage).
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After finishing the build, you decide whether you want to take the equity loan.
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If you want to take the loan, Homes England will pay it to the mortgage lender when you’ve shown them your build warranty (proof that the build is finished).
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The mortgage lender will subtract the loan amount from the value of the mortgage you owe.
You have 3 years to build the home. You can ask for more time if you’re not finished building after 3 years.
Homes England will only allow more time if the build has been delayed due to circumstances beyond your control, for example import delays, staff shortages, or weather.
Fees
You must pay a £1 monthly fee to manage the loan, starting from when Homes England gives the loan amount to your lender.
The £1 fee is collected by the equity loan administrator. This is a person Homes England appoints to manage the loan.
Interest
You must pay interest on the loan each month, starting 5 years after the date that’s shown on the equity mortgage document.
In year 6, you’ll pay a total of 1.75% interest on the equity loan amount you borrowed, divided into 12 monthly instalments.
For example, if you got an equity loan of £80,000, 1.75% would be £1,400. You’d pay 12 monthly instalments of £116.67, adding up to £1,400.
From year 7 onwards, the amount of interest you pay will go up in line with the consumer price index, plus 2%. You can read more about how much interest you’ll pay.
Paying interest does not count towards paying back the equity loan.
If you miss a fee or interest payment
You may need to pay recovery costs or interest on the amount you owe.
Contact Homes England if you have a question about your Help to Build: Equity loan.
Homes England
Telephone: 01158 526 934
Monday to Friday, 9am to 5pm
Find out about call charges