Help to Build: Self-Build Equity Loan Explained for UK Self-Builders

What Help to Build Is and Who It Is For

Help to Build is the UK government's equity loan scheme designed to support self-build and custom build housing in England. Launched in 2021 and administered by Homes England, it provides eligible applicants with an equity loan of between 5% and 20% of the estimated completed market value of their self-build home (up to 40% in London). This loan is interest-free for the first five years and reduces the amount the borrower must finance through a self-build mortgage.

Help to Build is modelled closely on the Help to Buy Equity Loan scheme that ran for new build developer properties, but adapted to the specific financing structure of self-build and custom build projects. While Help to Buy has closed to new applicants, Help to Build continues to operate as of early 2026, reflecting the government's stated commitment to growing the self-build sector.

The scheme is open to any individual (or couple, up to two applicants) who wishes to build or commission a custom build home as their main residence in England. You do not need to be a first-time buyer. The property must be a new build — you cannot use Help to Build to fund an extension or conversion. The home must be used as your main residence and cannot be rented out.

How the Equity Loan Is Structured

The mechanics of Help to Build differ from Help to Buy in one critical way: because the home does not exist at the start of the project, the equity loan cannot be disbursed as a lump sum at a notional purchase price. Instead, the loan is drawn down in stages alongside the self-build mortgage.

The process works as follows:

**Pre-application.** You must have planning permission for the build, a final build cost estimate prepared by a quantity surveyor or professional builder, and an offer in principle from a Help to Build-registered lender for a self-build mortgage. The Help to Build loan amount is calculated on the estimated completed market value of the finished home, not the build cost.

**Homes England assessment.** You apply to Homes England through the Help to Build portal. Homes England assesses your application against eligibility criteria and, if approved, issues a Homes England Authority to Proceed (HHAP).

**Stage drawdowns.** The equity loan is drawn down in tranches that mirror your self-build mortgage drawdowns at defined construction milestones (foundations, wall plate, wind and watertight, first fix, second fix, practical completion). At each stage, an independent surveyor certifies that the work is complete to the required standard and both the self-build mortgage lender and Homes England release their respective share of the stage payment.

**Completion valuation.** On practical completion, a RICS valuer certifies the completed market value. The Help to Build equity loan is calculated as a percentage of this final certified value — which may differ from the estimated value used at application.

Interest and Repayment Terms

The Help to Build equity loan is interest-free for the first five years. From year six, a management fee of 1.75% of the loan amount is charged in year six, increasing annually by RPI plus 1%. The management fee is not technically "interest" (the equity loan does not accrue compound interest) but functions similarly in economic terms.

The equity loan must be repaid when: you sell the home; you repay the Help to Buy mortgage in full; the equity loan term expires (25 years or the term of your repayment mortgage if shorter); or you breach the terms of the equity loan agreement (for example by renting out the property).

Crucially, when you repay the equity loan — whether through sale proceeds or by a standalone repayment — you repay a percentage of the then-current market value, not the original nominal loan amount. If you borrowed a 20% equity loan against an estimated completed value of £300,000 (loan = £60,000) and the home is later worth £400,000, you repay 20% of £400,000 = £80,000. If the home falls in value to £250,000, you repay £50,000. The equity loan rises and falls with the property.

Lenders Who Participate in Help to Build

Not all self-build mortgage lenders participate in the Help to Build scheme. Registered lenders as of early 2026 include Buildstore (through their specialist lender relationships), Darlington Building Society, and a small number of regional building societies. The list is substantially shorter than the list of Help to Buy-registered lenders — because self-build mortgages are a specialist product and the additional complexity of the Help to Build stage drawdown structure requires lender-specific systems and processes.

Your mortgage broker must be experienced in both self-build mortgage products and the Help to Build scheme. The interaction between the two funding streams at each stage drawdown requires precise coordination — if the surveyor's stage certificate is delayed, both the self-build mortgage lender and Homes England may delay their disbursements, creating cash flow pressure on your build programme.

Key Conditions and Restrictions

Several conditions attach to the Help to Build equity loan:

**Minimum 5% cash deposit.** You must contribute at least 5% of the estimated build cost from your own resources. The combined Help to Build loan and self-build mortgage cannot exceed 95% of the estimated completed value.

**Main residence only.** The home must be your principal private residence throughout ownership. You cannot rent the property out — if you let it, Homes England can require immediate repayment of the equity loan.

**Staircasing and modifications.** Unlike shared ownership, Help to Build does not have a formal "staircasing" mechanism. You can repay part of the equity loan at any time by instructing a RICS valuer to certify the current market value, then making a partial repayment equivalent to the percentage you wish to redeem. Minimum partial repayment is 10% of the current market value.

**Build must be completed within three years.** The equity loan agreement requires the home to be built and occupied within three years of the first drawdown. Extensions may be available in limited circumstances.

Maintain complete records of the Help to Build application, stage certificates, drawdown records, and final valuation in your Property Passport UK new build passport. These documents are required for any future remortgage or sale, and Homes England will require access to them when the equity loan is repaid.