Help to Buy

Help to Buy: Equity Loan

What is an equity loan?

Are you a first time buyer struggling to get on the property ladder? A Help to Buy Equity Loan could help. It allows you to take out a loan which you then add to your deposit for the house you want to buy.   

You take out a shared equity mortgage on the remaining part of the property's price. A lender agrees to give you this loan alongside your main mortgage in return for a share of any profits when you sell your house or repay the loan. 


  • You actually own 100% of the property - the 'loan equity' part just means that you're taking out a loan which counts towards your deposit.
  • Having this bigger deposit can help you buy a property earlier than you could otherwise, and you might be able to get a cheaper mortgage deal.

How does an equity loan work?

A smaller deposit

The loan allows you to put down a 5% deposit on a new-build home worth up to £600,000, with up to 20% of the cost of the property covered by a shared equity loan.

Repay at any time, or when you sell

You can repay the loan at any time during the term of the mortgage, or when you sell your property.

Loan amount linked to property value

The value of this loan is linked to the value of the property you've bought, so if this rises over time so will the loan amount you have to pay back.

How much you need to contribute

  • You need to put in at least 5% of the property price as a deposit
  • The government will give you a loan for up to 20% of the price
  • You'll need a mortgage of up to 75% to cover the rest  
  • Example below for a property worth £200,000

Example below for a property worth £200,000

What are the fees?

  • You won’t be charged loan fees for the first five years of owning your home
  • There’s no interest to pay on the loan for the first five years, but after that, you have to pay a fee of 1.75% of the loan’s value. This increases every year by the Retail Prices Index (RPI) measure of inflation, plus 1%
  • Paying fees don’t count towards paying back the loan amount

What happens if I sell?

  • You must pay back the loan after 25 years or when you sell your home, whichever is earliest. You can pay back part or all of your loan at any time
  • How much you pay back will depend on the market value of your home at that time. The minimum percentage you can pay back is 10% of the market value

Example below

Interested in a NatWest Equity Loan?

Arrange a free call back to discuss how NatWest Equity Loan can help you get the house you want quicker.

If you want to book an appointment to discuss a NatWest Help to Buy: Equity Loan, call us on 0800 096 9527

Customers with hearing and speech impairments can contact us by using the Minicom number 0800 027 1396.

NatWest mortgages are available for over 18s. Your home may be repossessed if  you do not keep up repayments on your mortgage.

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