Help to Build UK — Self-Build Scheme Guide

Help to Build makes self-building more accessible. Here’s how the scheme works.

What Is Help to Build?

Overview

Feature	Details
Type	Government equity loan
For	Self-build projects in England
Loan amount	5-20% (40% London)
Your deposit	Minimum 5%
Mortgage	Remainder from lender
Max property value	£600,000

How Funding Works

Source	Percentage
Help to Build equity loan	5-20% (40% London)
Your deposit	5%+
Self-build mortgage	75-90%

Example Funding Split

£400,000 Total Build	Non-London
Help to Build (20%)	£80,000
Your deposit (5%)	£20,000
Mortgage (75%)	£300,000

Eligibility

Who Qualifies

Requirement	Detail
Age	18+
Residence	UK citizen or eligible
Location	Building in England
Purpose	Main residence (no BTL)
Max value	£600,000 land + build
Deposit	5% minimum
Mortgage	Must be able to obtain

Who Can Apply

Applicant	Eligible?
First-time buyers	Yes
Current homeowners	Yes
Want to rent current home	No — must sell/live in new
Investors	No
Companies	No — personal application

Property Requirements

Requirement	Detail
Location	England only
Type	House or flat
Self-build	Must be custom/self-build
Main residence	Must live there
New build	Not existing property

How the Scheme Works

Step by Step

Stage	What Happens
1. Apply	Through registered provider
2. Get Authority to Proceed	If approved
3. Find land	Purchase site
4. Plan build	Costs, design, contractor
5. Mortgage	Arrange self-build mortgage
6. Build	Construction begins
7. Drawdowns	Loan released in stages
8. Completion	Final payment

Timing

Phase	Typical Duration
Application to ATP	4-8 weeks
ATP validity	3 months (extendable)
Build period	3 years maximum
From approval	To completion

Equity Loan Details

How Much

Location	Equity Loan Range
Outside London	5-20% of costs
Inside London	5-40% of costs

Interest-Free Period

Years 1-5	No interest
Year 6 onwards	1.75% of loan value
Annual increase	RPI + 1%
Paid	Monthly

Fee Example

£80,000 Loan	Year 6
Fee rate	1.75%
Monthly fee	~£117
Increases annually	With RPI

Repayment

When You Repay

Trigger	Repayment Due
Sell property	On sale
Mortgage paid off	On redemption
25 years	End of term
Choose to	Early repayment

How Much You Repay

Important	Not Original Amount
You repay	% of current value
Value increases	You repay more
Value decreases	You repay less

Repayment Example

Scenario	Amount
Original build cost	£400,000
Equity loan (20%)	£80,000
Property value at sale	£500,000
Repayment (20% of £500k)	£100,000

Partial Repayments

Allowed	Minimum 10% of loan
Benefit	Reduces fees
Repeat	Can make multiple
Valuation	Required

Self-Build Mortgages

How They Differ

Standard Mortgage	Self-Build Mortgage
One payment	Stage payments
After completion	During construction
Property exists	Property being built

Stage Payments (Drawdowns)

Typical Stages	When
Land purchase	At start
Foundations	First build stage
Wall plate	Walls complete
Wind/watertight	Roof on
First fix	Plumbing/electrics in
Plastered	Internal finish
Completion	Final payment

Finding Lenders

Lenders Offering	Notes
BuildStore	Specialist broker
Ecology Building Society	Self-build focus
Various others	Fewer than standard
Specialist advice	Recommended

Costs to Budget

Total Project Costs

Cost Element	Typical Range
Land	£50,000-200,000+
Build costs	£1,500-3,000/sqm
Stamp duty (on land)	As applicable
Professional fees	10-15% of build
Utilities connections	£5,000-20,000
Contingency	10-20% of build

Example Budget

£400,000 Project	Amount
Land	£100,000
Build (150sqm × £2,000)	£300,000
Stamp duty	Included in land
Architect/professionals	£30,000
Contingency	£30,000
Connections/landscaping	£20,000
Total	~£480,000

Funding Shortfall

Why Budgets Overrun
Build costs rise	Materials, labour
Design changes	Common
Unexpected issues	Ground conditions
Contingency essential	15-20%

Application Process

What You Need

Document	Purpose
ID	Proof of identity
Proof of income	Affordability
Land details	Plot information
Build costs	Detailed breakdown
Planning permission	Or expecting it
Mortgage AIP	From self-build lender

Where to Apply

Provider	Who Are They
Registered Help to Build agent	Must use
Homes England list	On gov.uk
BuildStore	Major provider

Pros and Cons

Advantages

Pro	Benefit
Lower deposit needed	5% vs 15%+
Design your home	Custom to needs
Potentially cheaper	Per sqm
Modern, efficient	Energy performance
Interest-free period	5 years

Disadvantages

Con	Issue
Complex process	Lots of coordination
Risk of cost overrun	Common
Time-consuming	Years not months
Repay % of value	Share appreciation
Limited lenders	Fewer options

Alternatives

Other Self-Build Finance

Option	Details
Standard self-build mortgage	Without equity loan
Accelerator mortgage	Higher LTV specialist
Cash	If available
Combination	Multiple sources

Is Help to Build Right?

Consider If	Yes
Limited deposit	5% possible
First-time builder	Support helpful
Need maximum funding	Stretches budget

Consider Alternatives If	Why
Large deposit	Don’t need equity loan
Don’t want % repayment	Locks in share
Investment property	Not eligible

Summary

Key Facts

Item	Detail
Equity loan	5-20% (40% London)
Your deposit	5% minimum
Max value	£600,000
Interest-free	5 years
Repay	% of future value

Checklist

Before Applying	Done?
Understand self-build process	☐
Find suitable land	☐
Budget full project cost	☐
Research self-build mortgages	☐
Get mortgage AIP	☐
Professional team (architect etc)	☐
Apply through registered agent	☐

Key Contacts

Resource	For
gov.uk/help-to-build	Official information
BuildStore	Mortgages and Help to Build
NACSBA	National Custom & Self Build Association
Local planning	For your build location