Affordable Housing schemes

We accept a range of low-cost affordable housing and government backed schemes for homebuyers.

Read our Housing schemes lending criteria
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Equity Share Loan (including Help to Buy and Help to Buy London)

With as little as a 5% deposit, your client can buy a property with an equity shareholder (eg Builder, Local Authority, Housing Association) who can provide a deposit of up to 50%, secured by way of a second charge.

What you need to know:

  • Your client needs a minimum deposit of 5% of the full purchase price of the property, this must come from either the applicant's own resources, a gift from family or friends (the gift must not be repayable under any circumstance and have no conditions attached), or a combination of these. (Forces Help to Buy isn’t accepted in conjunction with an equity share loan).
  • The Equity Shareholder provides a loan of up to 50% secured by a second charge on the mortgage. More information on Equity Shareholders we accept can be found under Lending Criteria.
  • LTV is based on the open market valuation of the property, not your client's share.
  • There mustn’t be a requirement to repay the loan within five years. Also, interest must not be charged during this period.
  • Equity Share Loan applications are only accepted on a capital repayment basis.
  • Includes Equity Share Loan schemes such as Help to Buy England/Scotland/Wales.
  • Your client’s mortgage term can’t extend beyond the date that the repayment of the Equity Loan first becomes due.

For more information about the Equity Share Loan scheme, read our Equity Share Loan lending criteria.

We also accept Help to Buy: ISA as a source of deposit. For more details view our Help to Buy: ISA information.

Help to Buy - Equity Loan Scheme England

How does the Help to Buy – Equity Loan scheme work?

  • The Government’s HomeBuy agent will agree an Equity Loan with your client which is between 10% - 20% of the purchase price (between 10% - 40% for Help to Buy London). This Equity Loan is interest free for the first 5 years.
  • From year six a fee of 1.75% per annum is payable monthly on the Equity Loan, which rises annually by RPI inflation plus 1%. The Equity Loan can be repaid at any time within the term of the mortgage, or on sale of the property.
  • A minimum deposit of 5% of the full purchase price is required by the applicant
  • Available for new build properties in England
  • Dedicated Equity Share Loan products are available

How can it benefit my clients?

The Help to Buy – Equity Loan scheme will enable your clients with a smaller deposit to get on or move up the property ladder. If they have a deposit of at least 5% and meet Nationwide’s lending and affordability requirements then they may be able to buy a newly built home under this scheme.

What do my clients need to consider to qualify for the scheme?

If your clients can answer yes to the following, the scheme may be a suitable option.

  • Is the property a new build property in England, which is included in the scheme? If they are in doubt, advise them to speak to the builder or developer about whether they participate in the scheme.
  • Is the purchase price not more than £600,000?
  • Properties subject to a Section 106 agreement are not eligible.
  • Will the property be the only property they have an interest in?
  • Are they a UK citizen, or have indefinite leave to remain in the UK?
  • Can your client provide a deposit of at least 5% of the full purchase price from their own resources, or family gift?
  • Has your client received approval from their local HomeBuy Agent?

What should my clients be aware of?

  • The scheme does not change or reduce your client’s personal responsibility in any way.
  • Your client is responsible for paying the mortgage under the Help to Buy – Equity Loan scheme in exactly the same way as any other mortgage holder.
  • The equity loan can be repaid at any time within the term of the mortgage, or on sale of the property. The percentage borrowed remains the same until the property is sold (if repayments have been made, this percentage will be adjusted accordingly), so if the property value changes, the amount to be repaid changes proportionately.
  • From year six a fee of 1.75% per annum is payable monthly on the equity loan, which rises annually by RPI inflation plus 1%, so longer term affordability should be considered.
  • Builders sometimes offer incentives when purchasing one of their properties, these are acceptable, provided the total value of these incentives does not exceed 5% of the property value. Nationwide does not allow builders to contribute towards the deposit. Part exchange of their current property is not permitted.

How do I submit a case?

  • Applications can be submitted via NFI Online
  • In the Loan Requirements screen, the property ownership type should be selected as Equity Share Loan
  • In the Loan Requirements screen, the type of Equity Share Loan is Housing Assoc/Local Auth/National Govt
  • In the description of property screen, the Equity Share Loan Provider name entered should be The Homes and Communities Agency

For more information about the Equity Share Loan scheme, read our Equity Share Loan lending criteria.

We also accept Help to Buy: ISA as a source of deposit. For more details view our Help to Buy: ISA information.

This is high level information only and information provided by the Government’s HomeBuy agent should be reviewed and understood.

Help to Buy - Equity Loan Scheme Wales

How does the Help to Buy – (Wales) scheme work?

  • The Government’s HomeBuy agent will agree an Equity Loan with your client which is between 10% - 20% of the purchase price
  • This Equity Loan is interest free for the first 5 years
  • From year six a fee of 1.75% per annum is payable monthly on the Equity Loan, which rises annually by RPI inflation plus 1%. The Equity Loan can be repaid at any time within the term of the mortgage, or on sale of the property.
  • A minimum deposit of 5% of the full purchase price is required by the applicant
  • Available for new build properties in Wales
  • Dedicated Equity Share Loan products are available

How can it benefit my clients?

The Help to Buy – Equity Loan scheme will enable your clients with a smaller deposit to get on or move up the property ladder. If they have a deposit of at least 5% and meet Nationwide’s lending and affordability requirements then they may be able to buy a newly built home under this scheme.

What do my clients need to consider to qualify for the scheme?

If your clients can answer yes to the following, the scheme may be a suitable option.

  • Is the property a new build property in Wales, which is included in the scheme? If they are in doubt, advise them to speak to the builder or developer about whether they participate in the scheme.
  • Is the purchase price not more than £300,000?
  • Properties subject to a Section 106 agreement are not eligible.
  • Will the property be the only property they have an interest in?
  • Are they a UK citizen, or have indefinite leave to remain in the UK?
  • Can your client provide a deposit of at least 5% of the full purchase price from their own resources, or family gift?
  • Has your client received approval from Help to Buy (Wales) Limited?

What should my clients be aware of?

  • The scheme does not change or reduce your client’s personal responsibility in any way
  • Your client is responsible for paying the mortgage under the Help to Buy – Equity Loan scheme in exactly the same way as any other mortgage holder
  • The equity loan can be repaid at any time within the term of the mortgage, or on sale of the property. The percentage borrowed remains the same until the property is sold (if repayments have been made, this percentage will be adjusted accordingly), so if the property value changes, the amount to be repaid changes proportionately.
  • The equity loan is interest only, with a £1 monthly admin charge payable from year 1 to year 5
  • From year six a fee of 1.75% per annum is payable monthly on the equity loan, which rises annually by RPI inflation plus 1%, so longer term affordability should be considered
  • Builders sometimes offer incentives when purchasing one of their properties, these are acceptable, provided the total value of these incentives does not exceed 5% of the property value. Nationwide does not allow builders to contribute towards the deposit. Part exchange of their current property is not permitted.

How do I submit a case?

  • Applications can be submitted via NFI Online
  • In the Loan Requirements screen, the property ownership type should be selected as Equity Share Loan
  • In the Loan Requirements screen, the type of Equity Share Loan is Housing Assoc/Local Auth/National Govt
  • In the description of property screen, the Equity Share Loan Provider name entered should be The Homes and Communities Agency

For more information about the Equity Share Loan scheme, read our Equity Share Loan lending criteria.

We also accept Help to Buy: ISA as a source of deposit. For more details view our Help to Buy: ISA information.

This is high level information only and information provided by the Government’s HomeBuy agent should be reviewed and understood.

Help to Buy - Equity Loan Scheme Scotland

How does the Help to Buy – (Scotland) scheme work?

  • The Government’s agent will agree an Equity Loan with your client which is between 10% - 15% of the purchase price. This Equity Loan is interest free for the term of the mortgage.
  • A minimum deposit of 5% of the full purchase price is required by the applicant
  • Available for new build properties in Scotland
  • Dedicated Equity Share Loan products are available

How can it benefit my clients?

The Help to Buy – Equity Loan scheme will enable your clients with a smaller deposit to get on or move up the property ladder. If they have a deposit of at least 5% and meet Nationwide’s lending and affordability requirements then they may be able to buy a newly built home under this scheme.

What do my clients need to consider to qualify for the scheme?

If your clients can answer yes to the following, the scheme may be a suitable option.

  • Is the property a new build property in Scotland, which is included in the scheme? If they are in doubt, advise them to speak to the builder or developer about whether they participate in the scheme.
  • From 1 March 2016 the maximum purchase price will be £230,000.
  • Properties subject to a Section 106 agreement are not eligible.
  • Will the property be the only property they have an interest in?
  • Are they a UK citizen, or have indefinite leave to remain in the UK?
  • Can your client provide a deposit of at least 5% of the full purchase price from their own resources, or family gift?
  • Has your client received approval from their local Scheme Agent?

What should my clients be aware of?

  • The scheme does not change or reduce your client’s personal responsibility in any way.
  • Your client is responsible for paying the mortgage under the Help to Buy – Equity Loan scheme in exactly the same way as any other mortgage holder.
  • The equity loan must be repaid on the sale of the property. The percentage borrowed remains the same until the property is sold (if repayments have been made, this percentage will be adjusted accordingly), so if the property value changes, the amount to be repaid changes proportionately.
  • Builders sometimes offer incentives when purchasing one of their properties, these are acceptable, provided the total value of these incentives does not exceed 5% of the property value. Nationwide does not allow builders to contribute towards the deposit. Part exchange of their current property is not permitted.

How do I submit a case?

  • Applications can be submitted via NFI Online
  • In the Loan Requirements screen, the property ownership type should be selected as Equity Share Loan
  • In the Loan Requirements screen, the type of Equity Share Loan is Housing Assoc/Local Auth/National Govt
  • In the description of property screen, the Equity Share Loan Provider name entered should be The Homes and Communities Agency

For more information about the Equity Share Loan scheme, read our Equity Share Loan lending criteria.

We also accept Help to Buy: ISA as a source of deposit. For more details view our Help to Buy: ISA information.

This is high level information only and information provided by the Government’s HomeBuy agent should be reviewed and understood.

Forces Help to Buy

The Forces Help to Buy (FHTB) scheme was introduced in April 2014 to allow service personnel to borrow an interest-free loan of up to 50% of their salary (to a limit of £25,000) which they can then use towards their deposit.

What you need to know:

  • The loan is paid back over ten years through their monthly salary.
  • The scheme is running for three years and is intended to help more serving men and women buy their first home or buy a new home if they're assigned elsewhere.
  • Forces Help to Buy can't be used on applications for an Equity Share Loan.
  • To find out more about our Forces Help to Buy criteria, read our Lending Criteria
Shared Ownership

Using this scheme, your client can buy a share in a property under a lease, usually from a registered social landlord (Housing Association or Local Authority), who will own the remaining share.

What you need to know:

  • Your client must purchase at least a 25% share of the property.
  • We’ll lend up to 90% for your client to purchase their initial share.
  • Your client will normally pay rent on the remaining share of the property to the other shareholder.
  • The purchase price must be the defined percentage of the full open market value. Your client mustn’t pay any additional money for the purchase.
  • When assessing affordability, the shared ownership rental figure must be included as a monthly outgoing.
  • Shared Ownership mortgages are available on all of our standard products.
  • We’ll consider Shared Ownership leases when staircasing is capped (eg if the maximum share a client can own is limited to 80%).

Example based on a 75/25 split (25% owned by shared ownership landlord)

  • Full price/value of £100,000
  • Amount retained by shared ownership landlord £25,000
  • Price/value of the share £75,000
  • Maximum loan available £67,500 (90% of £75,000)
  • Minimum deposit of 10% required – 10% is £7,500

For more information about our Shared Ownership scheme, read our Shared Ownership lending criteria.

Right to Buy Purchase

If your client is a tenant of a local authority property, they could purchase the property with a Right to Buy Purchase.

What you need to know:

  • We can lend up to 100% of the discounted purchase price.
  • We can also lend additional amounts for home improvements and legal fees.
  • Debt consolidation isn’t available on Right to Buy properties.

For more information about the Right to Buy Purchase scheme, read our Right to Buy Purchase lending criteria.

View our range of purchase types, including Genuine Bargain Price, Restricted Resale Price and Restricted Resale Market.

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