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The new Help to Buy: Equity Loan (2021-2023) scheme is now open for business.

Homes England has announced that first-time buyers interested in new-build homes can apply for the new Help to Buy: Equity Loan scheme.

With a Help to Buy: Equity Loan, the government lends homebuyers up to 20%, or 40% in London, of the cost of a newly built home.

Customers pay a deposit of 5% or more and arrange a mortgage of 25% or more to make up the rest. The equity loan is interest-free for the first five years.

Homebuilders are getting into contract for the new scheme and starting to market their new build homes.

Eligible first-time buyers will be able to reserve their homes from mid-December and get the keys to move in from 1 April 2021.

Housing Secretary Robert Jenrick commented: “The government is providing more ways to help families onto the housing ladder, and provide that life-changing moment when you get the keys to your own home.

Help to Buy has already helped more than 270,000 people into home ownership and 82% are first-time buyers, according to Will German, director of Help to Buy at Homes England.

He said: “The new Help to Buy builds on this success with first-time buyers in front of mind.

“We’re pleased we can help homebuyers with smaller deposits to own a home, at a time where there are fewer options open to them.

It is hoped that the new Help to Buy: Equity Loan (2021-2023) scheme will help more first-time buyers gain a foot on the housing ladder.