Understanding Borrowing Limits on the Help to Buy Scheme

Help to Buy is a scheme that has helped thousands buy their home with a boosted deposit and lower interest rates. Here we unpick the borrowing limits and how that impacts your choice of residential property.

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Based on your yearly income, you may be able to borrow:


Most lenders will let you borrow 4.5 times your annual salary so, as long as you have a standard 10% deposit, you should be able to borrow this much.


Depending on your personal circumstances, some lenders may let you borrow 5 times your salary.


Lenders usually cap the amount they lend at 5.5 times your salary, so it’s unlikely you’ll be able to borrow more than this.

This calculator is an estimation of how much you could borrow. If you’re ready to take out a mortgage, speak to a Revolution brokers to see what options are available.

Understanding Borrowing Limits on the Help to Buy Scheme

The Help to Buy scheme helps many people get onto the property ladder, and find affordable mortgage borrowing.

However, before you start making applications and looking for a property, you need to know what you can borrow, the caps on property values, and how much you can apply for as an equity loan.

The Revolution team has created this guide to explain all the limits you should be aware of. For more help with securing competitive Help to Buy lending, give us a call on 0330 304 3040, or email the team at info@revolutionbrokers.co.uk.

What is the Maximum I Can Borrow Through Help to Buy?

There are a few limits to be aware of:

  • The equity loan can be up to 20% of the value of the property.
  • You must contribute at least a 5% deposit.
  • The mortgage element needs to be for at least 25% of the purchase price.
  • Your deposit contribution and the mortgage together must be at least 80%.

In London, the limits are slightly different:

  • You can borrow up to 40% through the equity loan.
  • The mortgage still needs to be for at least 25%.
  • Your mortgage and deposit together need to be at least 60%.
  • The maximum property value is £600,000.

The maximum Help to Buy loan value is £120,000 in England and Wales, with a higher cap of £240,000 in London.

As an illustration:

  • You are buying a property worth £200,000 and have a 5% deposit.
  • You borrow £40,000 as an equity loan.
  • The cash deposit is £10,000.
  • The balance of £150,000 is funded through a mortgage.

Do Limits Apply to a Remortgage on a Help to Buy Mortgage?

If you decide to refinance, the maximum you can borrow is calculated on the usual affordability calculations used for any mortgage.

The only variable is that your equity loan balance will carry over unless you remortgage and raise capital to repay the loan.

How do Lenders Calculate Affordability on Help to Buy?

Lenders will need you to have a 5% deposit to apply for a Help to Buy mortgage - although you can contribute up to 65% of the property value, with a 10% Help to Buy loan and the minimum mortgage value of 25%.

Your application will include information about the property you want to buy, what deposit you have available, and how much you can earn.

Typically, lenders can offer up to 4.5 times your annual income, and your expenses need to be within 45% of your monthly disposable income.

What are the Repayment Terms on a Help to Buy Mortgage?

The loan element is interest-free for five years but carries a £1 monthly nominal fee payable to Homes England.

After five years, you are charged interest at 1.75% in year six, which increases each year in line with the Retail Price Index, plus an additional 1%.

You must repay a Help to Buy loan within 25 years, or whenever you sell the property.

It is essential to note that, whatever proportion of your property is funded through an equity loan, you will need to pay back this same proportion when you repay, calculated against the current market value of your home.

Expert Advice on UK Help to Buy Borrowing

Not sure whether Help to Buy is your best bet - or uncertain whether a property you'd like to purchase falls within the borrowing limits?

Give mortgage advisors a call on 0330 304 3040, or email us at info@revolutionbrokers.co.uk and we'll get the ball rolling!

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FCA disclaimer

The content included in our articles, blogs, web pages and news publications is based on information accurate at the time of writing. Note that policies and criteria can change regularly throughout the UK mortgage lending market, and it remains essential to contact the consultation team to receive up to date guidance. The information included on the Revolution Brokers site is not bespoke to any circumstances or individual application scenarios and therefore is not intended to be used as financial advice. The content we share is designed to be informative and helpful but cannot be relied upon to provide individual advice relevant to your mortgage requirements. All Revolution team members are fully qualified, trained and experienced to provide mortgage advice of an independent nature. We collaborate with lenders and providers who are regulated, authorised and registered with the Financial Conduct Authority (FCA). Should you require specific mortgage borrowing types, some products such as buy to let mortgages may not be FCA regulated. The Revolution team can provide further information about regulated and unregulated lending as required. Please remember that a mortgage is a debt which is secured against your home or property. Your home can be at risk of repossession if you do not keep up with the repayments or encounter any other difficulties in managing your mortgage borrowing responsibly. This also applies to any remortgage or home loan secured against your property, including equity release products.

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