What is help to build?
Help to Build is a new government equity loan that will be available to people in England who want to custom build or self build their own home.
Who is help to build for?
Custom build and self build homes are not just for people who have owned or built a home before. Help to Build can make building your own home a realistic choice, even if you have a small deposit.
What are the benefits?
A custom build or self build home means that you can decide on the:
- Design – building in features that suit your lifestyle, such as energy efficiency and smart technology
- Internal layout – designing a home that will suit your family’s specific needs
- Location – homes can often be the size and scale you want, built on smaller plots of land available for development in the area you want to live.
How much can you borrow?
With Help to Build, you can apply for an equity loan based on the estimated costs to buy a plot of land and build the home.
The equity loan amount can be between 5% to 20% (up to 40% in London) of the total estimated cost.
If you’re eligible, you can spend up to £600,000 on your new home. This must include the cost of the land if you don’t already own it, and no more than £400,000 on the cost to build it.
Who can apply?
You can apply for Help to Build if you:
- are 18 years of age or over, and have a right to live in England
- will live in the newly-built home as your only home
- secure a self build mortgage from a lender registered with Help to Build
Where to start?
You can find out more about Help to Build: Equity Loan here.
This explains how the equity loan works, who can apply, what you can borrow, how to repay, information about interest, fees and how to apply.
How to apply for the scheme
- 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.
How long is the scheme open for?
Help to Build funding is available for 4 years. If demand is higher than expected, funding may become unavailable sooner.
How long will the process take?
If you accept the offer of an equity loan from Help to Build, you’ll have 3 years to buy the land (if needed) and build your home.
In summary:
- Help to Build is an equity loan scheme where self-builders can apply to borrow between 5%-20% of their costs – and up to 40% in London.
- The scheme is designed to open up custom and self-build homes to people with small deposits.
- The total build costs cannot be over £600,000, or £400,000 if the land is already owned.
