Apply for a Help to Build: Equity Loan
After you've applied
Homes England will check your application to make sure you can repay the loan.
They’ll usually take 10 working days to tell you if they’ve approved your application.
If your application is approved
If you’re approved for an equity loan, and for your mortgage, Homes England will ask if you still want to go ahead with your project.
After you accept their offer, you can start building the home.
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The mortgage lender will give you parts of the mortgage at various stages of the build (you can make a plan for this when getting the mortgage).
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After finishing the build, you decide whether you want to take the equity loan.
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If you want to take the loan, Homes England will pay it to the mortgage lender when you’ve shown them your build warranty (proof that the build is finished).
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The mortgage lender will subtract the loan amount from the value of the mortgage you owe.
You have 3 years to build the home. You can ask for more time if you’re not finished building after 3 years.
Homes England will only allow more time if the build has been delayed due to circumstances beyond your control, for example import delays, staff shortages, or weather.
Your contact
Homes England will give you contact details for the equity loan administrator who can:
- set up a Direct Debit for you to pay the £1 monthly management fee
- manage fees and interest payments on your loan
- help you if you want to pay off some or all of your loan, or make changes to your account
Making the home your only property
After Homes England has paid the loan to your mortgage lender, you must:
- live in the new home as your only home
- sell any other residential property or land you own, even if it’s overseas, within 12 months of finishing the building work
Renting out the home or buying property
You must not:
- buy a second property
- rent out the entire home (you can rent out a room as long as you also live in the home)
People who live with you
Anyone else who applied with you must also sell all other property or land they own within 12 months of finishing the work.
Anyone living in the home who’s over 17 years old and did not apply for the loan must fill in an Occupier’s Deed of Consent form to confirm they have no ownership rights for the new home. To do this, talk to your conveyancing solicitor or licensed conveyancer.
Adding another person to the loan
You need permission from Homes England to add another person to your equity loan agreement after your loan is paid to the mortgage lender.
Changing the structure of the home
After the loan has been paid to the mortgage lender, you can only make changes to the home’s structure for medical reasons.
You need to ask Homes England if you want to do this. The equity loan administrator can help you with this.