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Help to Buy Mortgage Calculator

How are Help to Buy mortgages calculated? Get the right advice 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: 22nd October 2019 *

The Help to Buy scheme is only available for new build properties, and you’ll find a whole range of Help to Buy mortgage calculators online. The problem is, each calculator will provide you with a different estimation because they all use different average variables. 

This can make the process of understanding what you can borrow, or how much a mortgage amount might cost you, confusing. 

Without in-depth knowledge about the criteria that each mortgage lender uses to assess whether you will be approved for a mortgage, you can be left more confused than when you started.

The good news is that the brokers we work with can provide accurate information and find you the best mortgage deal based on your circumstances, even if you’ve been declined or have bad credit.

To help you calculate how much a Help to Buy mortgage could be, we have gathered all the key information you need to know in this guide including:

Save time on reading and get a Help to Buy mortgage quote that takes your personal situation into consideration. Call 0808 189 2301 or make an enquiry to speak to one of the expert advisors we work with.

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Where can I find a Help to Buy mortgage calculator?

We have one that you can use below. Our Help to Buy mortgage calculator will tell you how much you need to borrow based on the deposit and equity loan amount you have.

Simply enter these details into the boxes below, along with the price of the property you’re hoping to buy, and our online tool will do the rest for you.

We also have a separate mortgage calculator (found below the Help to Buy tool) that you can use to work out how much you’re potentially eligible to borrow from a mortgage lender.

Before you proceed, keep in mind that any mortgage calculator will only return rough figures with no context. For bespoke calculations that factor in your specific needs and personal circumstances, make an enquiry and the advisors we work with will help you out.

Help to Buy Calculator

Please note, maximum property values vary = £600k in London and England, £300k in Wales, and £200k in Scotland. Maximum Help to Buy Loan also varies = 40% in London, 20% England and Wales, 15% in Scotland.

How Much Can I Borrow?

Please note, these are approximate figures to illustrate the typical range off mortgage affordability. Help to buy loan lenders can limit affordability differently to some lenders.

Is there a Help to Buy mortgage calculator for how much can you borrow?

Most mortgage providers cap their lending at 4.5 times the borrower’s salary, but if you’re using the Help to Buy scheme, it’s more a case of how much you need to borrow.

We’ve created a Help to Buy mortgage calculator table below to give you a brief overview for how much mortgage you’ll need to qualify for (75% of the property’s value), with a Help to Buy equity loan and the minimum required deposit of 5% factored into the equation.

Interest rate: 3% (for example purposes only)

Property Value Deposit Size 5% Equity Loan 20% Mortgage Loan Required (75%)
£100,000 £5,000 £20,000 £75,000
£150,000 £7,500 £30,000 £112,500
£200,000 £10,000 £40,000 £150,000
£250,000 £12,500 £50,000 £187,500

For an accurate idea of how much a mortgage you’ll need to buy a property through the Help to Buy scheme, make an enquiry and the advisors we work with will break it down for you.

How is the interest on a Help to Buy equity loan calculated?

When calculating how much your Help to Buy mortgage will cost you, it’s important to factor in the interest rate charged on your equity loan.

The first five years of the Help to Buy equity loan is interest-free. After this, you'll be charged 1.75% on the outstanding amount as interest.

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

Equity loan interest example

Property value of £200,000 with a £40,000 equity loan

RPI of 5% (for example purposes only)

  Interest Rate RPI + 1% Interest Loan Repayment (Annual)
0-5 Years 0% 0%
6 Years 1.75% £700
7 Years 1.86% £744
8 Years 1.97% £788
9 Years 2.08% £832
10 Years 2.21% £840

Your interest payments for your equity loan are paid alongside your mortgage payments and do not pay off your loan amount.

For a mortgage of £200,000, in the 7th year of your mortgage you could be paying £744 annually for your interest payments on your equity loan as well as monthly mortgage payments of £711.

How are the repayments on my Help to Buy equity loan calculated?

You can choose to repay your loan during the term of your mortgage, although you also have the option to settle your equity loan as a lump sum when you sell your property.

Borrowers can make part repayments, known as staircasing, to reduce their ongoing costs when the interest-free period ends (after five years) and begin chipping away at the equity they have borrowed. 

Keep the following in mind if you’re considering staircasing:

  • You’re able to make repayments any time
  • Repayments must be at least 10% of your property’s value
  • Staircase payments could be subject to other criteria set by your mortgage provider
  • Every time you want to make a repayment, an independent valuer must assess your property and you will likely need to pay the costs of the valuation fees for this

Furthermore, if the property increases in value over time, the loan amount you have to pay back will also increase in line with this.

As you can see, this can be complex so speaking to a mortgage broker who has experience in Help to Buy 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, a mortgage broker can also find you the best interest rates on mortgages you will be eligible for which will help keep your payments as low as possible. 

Make an enquiry for a free, no obligation chat and we’ll match you with a broker with the right experience. All the experts we work with are whole-of-market mortgage brokers with access to all the lenders in the UK. They have the tools and knowledge to find the lender with the best mortgage to suit you.

How is a Help to Buy mortgage calculated across the UK?

Location Deposit Equity Loan Mortgage
Scotland 5% Up to 15% of the purchase price Your deposit and mortgage must cover a combined minimum of 85% of the purchase price
Wales 5% 20% 75%
Midlands 5% 20% 75%
South England 5% 20% 75%
South East England 5% 20% 75%
London 5% 40% 55%
North England 5% 20% 75%
North West England 5% 20% 75%
Yorkshire 5% 20% 75%

Where can I find a Help to Buy London mortgage calculator?

If you are buying in Greater London, the government has made the upper limit of the equity loan 40%, instead of 20%. This is to reflect the higher property prices you find in certain locations.

You can find links to calculators which may be useful on the government website here. However, for an accurate mortgage quote from an actual lender, speak to one of the expert advisors we work with. Make an enquiry for a free, no obligation chat.

Where can I find a mortgage calculator for Help to Buy Scotland?

The Scottish government’s Help to Buy website includes a sustainability calculator that lenders and financial advisors can use to determine whether a borrower is eligible for the scheme.

For detailed information about how Scottish Help to Buy mortgages are calculated, make an enquiry and the experts we work with will crunch the numbers for you and connect you with the lender offering the best deal you qualify for.

Where can I find a Help to Buy Wales mortgage calculator?

Help to Buy mortgages in Wales are calculated in much the same way as anywhere else in the UK (with the exception of Scotland and London), so any Help to Buy mortgage calculator will give you a rough idea of the rates and deals on offer if you’re using the scheme there.

For a clearer idea of the deals and rates you will qualify for, bespoke to your profile as a borrower, make an enquiry and the experts we work with will calculate this for you.

Will Bad credit affect your Help to Buy mortgage?

Bad credit can affect your chances of approval for a Help to Buy mortgage as well as the interest rate you may pay on your equity loan. 

Some lenders won’t accept borrowers with bad credit. However, there are specialist lenders who are more willing to approve a mortgage for borrowers with a less than perfect credit history.

Because of this, it’s best to speak to one of the mortgage advisors we work with who has experience in Help to Buy mortgages for people with bad credit.

For advice about how the specific type of bad credit you have can affect your application, contact a bad credit mortgage specialist .

Alternatively, see our bad credit information section.

Speak to a Help to Buy mortgage advisor

The Help to Buy mortgage advisors we work with are hand-picked whole-of-market mortgage brokers we trust to find you the best mortgage.

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

  • Search an increased market and find the best mortgage rates and deals
  • They can calculate your mortgage and equity loan repayments to give you an accurate reflection of what you can expect to pay
  • They can also calculate your affordability to ensure that the lender you choose provides a loan that is affordable for you
  • Approval for the Help To Buy loan must be gained before a mortgage application can be submitted. They can look after the Help To Buy application for you.

Call us on 0808 189 2301 or make an enquiry and one of the experts will be in touch shortly to help. We don’t charge a fee, there’s no obligation and we won’t leave a mark on your credit rating.

Updated: 22nd October 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.

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