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Launched in June 2022 and closed in March 2025, the Help to Build equity loan scheme aimed to make custom or self-build homes more accessible to people in England. It allowed you to build your dream home with just a 5% deposit, while benefitting from an interest-free loan for five years. With a budget of up to £600,000 when buying land (or £400,000 if you built on land you already owned), the scheme supported a wide range of self-build projects.
Help to Build
7 min read
Although the Help to Build equity loan scheme is no longer open to new applicants, My Home Move Conveyancing's guide explains how the scheme worked, who it was designed for, and what alternatives are available if you’re considering a self-build project today.
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What was the Help to Build scheme?
What benefits did the Help to Build scheme offer?
The Help to Build equity Loan Scheme was a government funded scheme, to help people build their own home, benefits included:
Financial Backing
The government invested £150 million into the scheme, opening new doors for aspiring homeowners who want to create their perfect property.
This investment addressed a crucial gap in the UK housing market, where only 7% of homes were self-built, demonstrating the potential for growth in this sector.
Empowering choice and collaboration
Community involvement was at the heart of this initiative, backed by an additional £2.1 million investment focused on engaging local residents in the planning process.
Shaping local development
Taking a strategic approach to planning and development, the scheme prioritised community input at every stage. By encouraging active participation in decisions about location, design, and integration of new properties, the initiative ensures developments enhance rather than disrupt local areas.
This combination of financial support and community engagement demonstrates how the Help to Build scheme aimed to revolutionise the way housing development was approached in the UK.
Who was eligible for the Help to Build scheme?
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You must have been over 18 and have a right to live in England
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The new self build home must've been your only residence
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You had to secure a self build mortgage from a Help to Build mortgage provider
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You must have had a minimum deposit of 5% of the estimated cost of the land and build
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How did the Help to Build equity loan scheme work?
The Help to Build scheme operated through a combination of a self-build mortgage and an equity loan.
Step 1: Secure a self-build mortgage
In order to secure your equity loan, you had to arrange a self-build mortgage from a broker, or provider registered with the Help to Build scheme. These mortgages can have a Loan to Value (LTV) of 95%, meaning you needed a deposit of just 5%.
Step 2: Apply for your Help to Build equity loan
Once you had a mortgage in place to finance your build, you had to apply for the equity loan. If approved, you received a loan offer based on the estimated costs to buy the land and build your home. The offer value ranged between 5% and 20% (up to 40% if building in London) of these total estimated costs.
Step 3: Building your home
With financing in place, you proceeded to build your home. This step included purchasing the land, finalising designs, obtaining necessary permissions, and overseeing the construction process.
What was the cost for self builds?
Without a Help to Build equity loan, the cost to build your own house could vary. The maximum amount you could spend on your self-build under the scheme was £600,000 which included a maximum of £400,000 for the build itself.
Using the equity loan to help with repayments
Once your home is built, the government funded scheme (Homes England) paid the equity loan amount straight to your self-build mortgage provider, which reduced your overall mortgage balance. Finally, you would be transitioned to a standard repayment mortgage for the remaining amount.
Did Help to Build make it cheaper to build your own home?
When you built a house using the Help to Build scheme you were eligible for a 95% mortgage and an equity loan of up to 20% of the cost to buy the plot of land and build your home (rising to 40% if building in London). This equity loan helped to make self-build mortgages more affordable for those who had a smaller deposit.
This means the scheme could make it cheaper to self-build because, instead of borrowing 95% of your home’s value, you only borrowed 75% from a mortgage lender. And, interest rates on a mortgage for 75% of the home’s value are lower than those for a 95% loan to value mortgage, making your overall repayments lower.
Repaying your Help to Build equity loan
Understanding how to repay your equity loan is crucial for long-term financial planning.
During the first five years: With the Help to Build equity loan you have five years where no interest is added, and therefore no payments are required. However, a monthly management fee of £1 is payable from the start of your equity loan.
In year six, interest is charged on your loan at a rate of 1.75%, divided into 12 monthly instalments.
From year seven onwards, this rate increases annually in line with the Consumer Price Index (CPI) plus 2%.
Repayment structure
During the term of your equity loan, your monthly repayments only contribute towards interest. You cannot contribute monthly towards the loan itself, you can either pay off in full or make part payments during the loan’s term, following specified scheme conditions. If you sell your house before the end of the term, you will also need to pay back the equity loan in full.
Repayment amounts
When making either a full or part payment towards the equity loan, the percentage you pay back is worked out from the market value of your house at the time of payment.
For example, if you had a self-build mortgage of £400,000 and an equity loan offer of 20%, the original value of your loan would be £80,000. If your house is valued at £500,000 when you choose to pay back the loan, the value to pay back is 20% of that market value, equalling £100,000.
Types of builds that were eligible for equity loan
There were different types of builds you could use the equity loan for:
Custom builds: Working alongside a developer to design your home within a custom build development.
Self-builds: Where you designed and built your home from scratch, often with the help of architects or a project managers.
Shell home: Where you have a structural shell but customise the interior to your needs, including layout and installations.
Other affordable home ownership schemes
While Help to Build is closed, building your own home is still possible using specialist self-build mortgages, savings products such as Lifetime ISAs, or other affordable home ownership schemes depending on your circumstances.
Shared Ownership– Ideal if you're interested in owning a share of a property and paying rent on the remaining share, making ownership more affordable.
Lifetime ISAs – A savings account that helps first-time buyers save for a deposit, offering a government bonus on your contributions.
First Homes Scheme – Designed for first-time buyers or key workers purchasing a new home in their local area at a discounted price.
For information on building a home in Wales visit the Welsh Government website.
If you are planning to build a home in Scotland visit the Scottish Government website to find out about self-build loans.
Whilst there isn't a government-backed scheme to help people who want to build their own home in Northern Ireland, you can find out about self build mortgages available in Northern Ireland here.
Do you need a conveyancer for your self build project?
In short, the answer is yes, conveyancing is typically required when you’re building a house, especially if you are purchasing land or entering into contracts with builders.
Here are the main reasons you need a conveyancer for a new building project:
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Land purchase:
If you're buying a plot of land to build on, a conveyancer will handle the legal transfer of ownership and check for restrictions, easements, or planning permissions tied to the land.
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Contract review:
When working with a builder, a conveyancer will check that the terms of the building contract are fair and protect your interests, including timelines, warranties, and costs.
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Mortgage and financing:
They assist in arranging finance for the land and construction and ensure the lender’s requirements are met.
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Legal compliance:
A conveyancing solicitor will ensure your build complies with local planning laws and building regulations, avoiding legal complications down the line.
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Title and registration:
Post-construction, they assist you in registering the title deed for your new home so that everything is legally in your name.
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