What is the Help to Build loan?

If you’ve ever considered building your own home but don’t know how you are going to fund it, the Help to Build loan might be an option for you. The Help to Buy loan is a government equity loan scheme for people in England who want to custom-build or self-build their own home. In this article, we look at how the scheme works, why you might consider using the scheme and who is eligible.

Why build your own home?

There are several benefits to building your own home rather than buying, including:

  • Being able to design it yourself - you can add the design elements and features that suit you without having to work around someone else’s tastes or preferences.
  • You can choose the exact location of your home.
  • Choosing your own layout - you can plan the home to fit your needs and lifestyle in terms of its layout.


Using the Help to Build scheme offers an equity-based loan on the estimated costs of buying a plot of land and building your home.

Who is eligible?

You can apply for the Help to Build scheme if you:

  • Are aged 18 or over
  • Have the right to live in England
  • Will live there as your only home
  • Secure a mortgage with a lender registered with the Help to Build scheme


You cannot apply to the Help to Build scheme if you:

  • Have had a Help to Build loan in the last two years
  • You owe money on any other government home ownership scheme

The scheme is not just open to those already on the property ladder or who have owned their own property before. It is also an option for first-time homeowners, even with a small deposit.

If eligible, how much can you spend on building your new home?

The maximum amount you can spend is £600,000. This price must include the cost of the land your home will be built on if you do not already own it and a limit of £400,000 to build your home.

How to apply for the scheme

The first step in the process is to secure a mortgage. This must be a self-build mortgage with a lender registered to the Help to Build scheme. To check whether a lender is registered, you should normally be able to find it on their website or ask them directly.

When you have secured your mortgage, you can then apply for the loan online through Homes England, this can be found here.

After applying for the scheme, you will get an offer based on your estimated costs of buying your land and building your home.

Once completed, Homes England will then pay the equity loan to your lender.

Getting the correct advice

Building your own home can be an exciting but daunting prospect, so it is important you get the right legal advice. As well as obtaining legal advice, you should also consider getting independent financial advice to determine whether the scheme is right for you.

For further help and advice, please contact Louise:

  • 01553 667240
View Louise's profile

This article aims to supply general information, but it is not intended to constitute advice. Every effort is made to ensure that the law referred to is correct at the date of publication and to avoid any statement which may mislead. However, no duty of care is assumed to any person and no liability is accepted for any omission or inaccuracy. Always seek our specific advice.

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