Shared equity mortgages (including Help to Buy 1 - equity loan)

The maximum LTV we will currently consider lending on shared equity properties is 90% based on the full market value of the property, however the maximum loan within these parameters will be 95% of the value of their equity share.

Please note that if the property is a new build then we will restrict the loan to a maximum of 80% of the full market value of the property. Available against property in England, Wales & in Scotland using the Affordable New Build Scheme Scotland.

The following rules apply to shared equity properties:

  • TSB must have first charge. The seller secures their interest by way of a second charge.
  • We will consider lending up to 95% of the value of the share that is being purchased.
  • The maximum equity share a builder or private company can retain is 25%.
  • Client must pay a 5% personal deposit towards the purchase of the share (excluding any deposit provided by a builder or housing association).
  • The mortgage must be on a repayment basis
  • We do not allow any remortgage applications, where there is any element of debt consolidation.
  • The default term for the equity loan is 25 years however normal criteria applies for the mortgage


Help to Buy 1 - Equity Loan

  • Available to all customers purchasing a new build property
  • UK, EEA and citizens who have a right to reside are eligible
  • Part Exchange is not acceptable
  • Property value and purchase price must be the same
  • Maximum value/purchase price of £600,000 in England, £300,000 in Wales, £230,000 in Scotland
  • Only available on capital repayment mortgages
  • The customer must provide a minimum deposit of 5% of the purchase price, by way of personal contribution. The Government lend up to 20% of the property value (15% in Scotland, 40% in London) through an equity loan, which can be repaid at any time or on the sale of the home
  • The maximum LTV for product selection is 80% and is based on the mortgage amount against the total property value.