What deposit is required for Help to Buy equity?

What deposit is required for Help to Buy equity?

• A. 5% only
• B. 20% only
• C. 10% and 15%
• D. 5% and 20%

Answer: (D)

Understanding how Help to Buy equity works: you fund the purchase with a small cash deposit plus a government equity loan, with the rest covered by a mortgage. The buyer typically provides a 5% deposit from their own funds, and the government contributes up to a 20% equity loan. The remaining 75% is financed by a mortgage from a lender. So the upfront funding involves both 5% of your money and a 20% government loan, which is why the option combining 5% and 20% is the correct choice. The other options miss either the personal deposit or the government equity element.

Understanding how Help to Buy equity works: you fund the purchase with a small cash deposit plus a government equity loan, with the rest covered by a mortgage. The buyer typically provides a 5% deposit from their own funds, and the government contributes up to a 20% equity loan. The remaining 75% is financed by a mortgage from a lender. So the upfront funding involves both 5% of your money and a 20% government loan, which is why the option combining 5% and 20% is the correct choice. The other options miss either the personal deposit or the government equity element.