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Help to Buy Mortgage Rates

What interest rates would you expect to pay on a Help to Buy Mortgage? Find out here.

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By Pete Mugleston  | Mortgage Advisor Pete has been a mortgage advisor for over 10 years, and is regularly cited in both trade and national press.

Updated: 3rd July 2019* | Published: 7th February 2019

We get lots of enquiries from people who want to know the best Help to Buy mortgage rates, many of whom may have been declined a mortgage or have a bad credit history.

There are a range of online Help to Buy mortgage rates tables that each provide brief information about the different rates each lender may give you. 

However, these tables don’t give an accurate guide and can be misleading because they don’t take into account your financial and personal circumstances, which lenders will look at to determine what rate to give you.

The good news is that the brokers we work with can provide this information and find you the best Help to Buy mortgage deal based on your circumstances.

To help you understand more about Help to Buy rates,we have gathered all the key information you’ll need to know including: 

If you are looking for a for a Help to Buy mortgage quote that takes your individual situation into consideration, speak to an advisor here

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How to get the best Help to Buy mortgage rates

A lot of customers approach us after searching through online rate tables - the problem is, everyone’s personal circumstances are different and these tools don’t take that into consideration. This can make it difficult to know if you’ll qualify for a mortgage and the rate you are presented with. 

Every lender has different rules about what they will and won’t accept from a customer in terms of bad credit or income, so for an accurate reflection of the rate you would expect to pay on your mortgage, you need to speak to a mortgage advisor who specialises in Help to Buy mortgage rates.

If you have more complex financial circumstances such as “bad credit” or a fluctuating income, then getting the best deal for you relies on a broker who knows the market and which lenders are more likely to accept your mortgage application.

Make an enquiry here and one of the experts will give the right advice.

Help to buy mortgage rates across the UK

Help to Buy varies across the UK and depending on where you live and the choice of lenders in your area, you may pay a different interest rate on your Help to Buy mortgage. 

Cities and highly populated areas often present a wider range of lenders in comparison to smaller cities and towns, so you may find that there aren’t as many Help to Buy mortgage products with favourable rates to choose from if you live in a more rural area.

Additionally, if you have any financial issues that pose a risk to lenders such as “bad credit” or low income, this can also restrict the number of lenders that may consider you as well as resulting in you possibly paying a higher interest rate on your Help to Buy mortgage.

No matter where you live, the mortgage advisors we work with dedicate their time to finding the best mortgage rates for Help to Buy in the UK, including locations in Scotland, Wales and England.

Speak to an expert today to find the best Help to Buy mortgages in the UK.

Help to Buy Equity loan mortgage rates

The amount of Equity Loan you can borrow from the government differs based on your location too, and this section will shed light on exactly how this will impact your application.

How do I find the best Help to Buy mortgages in England and Wales? 

Wales is subject to the same terms and criteria as England when it comes to the Help to Buy scheme. You’ll need at least 5% deposit and can take out an equity loan to cover up to 20% of the property’s value, which means you would need a mortgage for the remaining 75%.

The only real difference is that the equity loan can cover up to 40% in London.

The best way to ensure you end up with favourable rates on a Help to Buy mortgage in England or Wales is to apply through a whole-of-market broker. This will give you access to all of the best deals you qualify for and could save you time, money and potential marks on your credit report.

How do I find best Help to Buy mortgages Scotland?

In Scotland, you will need at least 5% deposit and can take out an equity loan to cover up to 15% of the property’s purchase price.

As fewer lenders operate in Scotland, finding the best rates on a Help to Buy mortgage can be trickier, but the way to go about it is much the same: apply through a whole-of-market broker to make sure you have access to all of the best deals that you qualify for.

What interest rate do you pay on a Help to Buy Equity Loan? 

A Help to Buy Equity Loan is charged at a 0% interest rate for the first five years but after this, you'll be charged 1.75% on your outstanding amount as interest. This does not apply to Scotland as no interest is charged on the equity loan there.

This will increase each year by RPI (Retail Price Index) which can increase or decrease due to inflation, plus 1%. 

Equity Loan interest rate example

If the property you were buying was valued at £200,000 and you had a 5% deposit of £10,000, your maximum equity loan would be 20% (£40,000), if you were buying in England or Wales.

The examples below was calculated with an RPI of 5% for example purposes only.

Interest rate
RPI + 1% 
Interest Only Loan repayment 
0 - 5 years 0% 0%
6 1.75 £700
7 1.86 £744
8 1.97 £788
2.08 £832
10 2.21 £884

The above example shows the potential interest only payments for an Equity Loan. These would be paid alongside your mortgage payments and do not pay off the Equity Loan itself.

What is the best Help to Buy mortgage for a new build property?

As Help to Buy mortgages are only for new-build properties, all of the above applies to anyone who is asking this question.

The advisors we work with are experts in new-build mortgages and can give you bespoke advice on these properties if you make an enquiry here.

Repaying a Help to Buy mortgage

You can choose to repay your Equity Loan during the term of your mortgage, alongside your interest only payments and your mortgage, although for some borrowers, this can be expensive and difficult to keep up with. 

An alternative could be to pay your Equity Loan as a lump sum when you sell your property, however if your property increases in value over time, the loan amount you have to pay back will also increase in line with this.

Calculating how much your Help to Buy mortgage repayments could be can be complex so speaking to a mortgage broker who has experience in Equity Loans can really help.

 As well as looking at your finances and your situation to give you a tailored Equity Loan and mortgage quote for Help to Buy, a mortgage broker can also find you the best interest rates. Speak to an advisor for more information on this here. 

Will bad credit affect my Help to Buy mortgage quote?

Some lenders won’t accept borrowers with bad credit however there are specialist lenders who have more of an appetite to lend to borrowers with bad credit. This can however, affect the Help to Buy interest rate that you are charged. 

Some lenders view more severe forms of bad credit such as bankruptcy as more of a risk, as this can suggest a history of mishandling debts and money. Therefore this is another factor that can affect the amount of interest you may pay on your HTB mortgage

Because each lender has varying rules on how they assess “bad credit” mortgage borrowers, it’s best to speak to one of the mortgage mortgage advisors we work with who has experience in Help to Buy for people with “bad credit.” 

The advisors we work with have access to a range of lenders and after talking with you and understanding your situation, will know the best Help to Buy mortgage products to recommend. 

For more information on how “bad credit” can affect your Help to Buy mortgage rate, contact a bad credit mortgage specialist here.

How an advisor can help you find the top Help to Buy mortgages

We have access to over 100 mortgage brokers and each one is carefully vetted to ensure that they have the specialist knowledge to provide the most accurate advice.

 Here’s how the mortgage advisors we work with can help you:

  • They will search the market and find the top 10 Help to Buy mortgages for you
  • They can calculate your mortgage and Equity Loan repayments to give you an accurate reflection of what you can expect to pay
  • They can calculate your affordability for a Help to Buy mortgage and put you in touch with the lenders with the best rates
  • They will help you through the Help to Buy mortgage process

Make an enquiry here and one of the experts be in touch to help.

Find the best Help to Buy mortgage deals by using an expert broker

If you have questions about Help to Buy mortgage rates or would like a Help to Buy mortgage quote, call Online Mortgage Advisor today on 0800 304 7880 or make an enquiry here.

Then sit back and let us do all the hard work in finding the broker with the right expertise for your circumstances. 

We don’t charge a fee and there’s absolutely no obligation or marks on your credit rating.

Updated: 3rd July 2019
OnlineMortgageAdvisor 2019 ©

FCA disclaimer

*Based on our research, the content contained in this article is accurate as of most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The info on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs. Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

Find out more about Help To Buy

Help To Buy Mortgages