Equity Share Loan Schemes

Lending terms - minimum deposit

We require a minimum deposit of 5%* of the full purchase price of the property which can only come from the applicant's own resources, a gift from family or friends, or a combination of both. A completed Gifted Deposit Form is required for all applications where any of the deposit that has been gifted is over 10k.

*For Help to Buy Equity Share: Scotland, where the property is a New Build flat, a minimum deposit of 10% is required.

For British Forces personnel, Long Service Advance of Pay (LSAP) can be used as part of the deposit, but must be in addition to the 5% from the above.

Forces Help to Buy scheme loans can be used as part of the deposit, but it must be in addition to the 5% from the above.

The minimum deposit must be based on the full purchase price - see example below:

Example based on a 5% deposit

Equity Share Loan 80/20 split (20% retained by Equity Loan shareholder)

  • Full price = £100,000
  • Equity Share Loan = of £20,000
  • 5% deposit = £5,000
  • Maximum loan available = £75,000
  • LTV = 75% of the full price

Builder cashback/deposit

Builder cashback/deposit isn't acceptable on Equity Share Loan cases, even if it's in addition to acceptable deposit sources. If the deposit is found to have come from an unacceptable source and a mortgage offer has been issued, the offer may be withdrawn.

Builder incentives are acceptable provided your client provides a minimum 5% deposit from their own resources. This includes legal fees, stamp duty and white goods.

Acceptable Equity Share Loan holders

We will only accept specific types of Equity Share Loan holders as follows:

Equity Share Loan holder
Max percentage retained by Equity Share Loan holder
Volume Builder i.e. regional, national
National/Local* Government or Housing Association
Help to Buy
Help to Buy London
Help to Buy: Scotland

*Up to maximum of 50%. Please check specific details of the scheme due to regional variations.

Unacceptable Equity Share Loan holders

The Equity Share Loan holders listed below are unacceptable:

  • Third party investors.
  • Individual private vendors.
  • Family members.
  • Employers.
  • Selling agents.
  • Self employed builder or property developer.


3% of the Equity Share Loan is included as an outgoing when calculating affordability, example shown below:

£30,000 Equity Share Loan x 3% = £900
÷ 12 = £75 monthly outgoing for affordability calculation

NB. During application NFI Online will calculate the charge automatically based on the loan requirements figures. For more tips and help on keying in Equity Share Loan cases, please read our Equity Share Loan Keying guide.

Other lending terms

  • We must have first charge over the whole property.
  • There must be no requirement to repay the Equity Share Loan for at least five years and during this period there must be no interest charged on the loan.
  • Applicants must be informed that we can't guarantee to make additional funds available at a later date in order to repay the loan.
  • LTV% calculations for both products and credit scoring will be based on the open market price/value.
  • Equity Share Loan applications only accepted on a capital and repayment basis.
  • Applicants who are non-EEA nationals must have indefinite leave to remain.
  • Equity Share Loan applications are not accepted in combination with any other affordable housing schemes, such as Shared Ownership, Sheltered Housing, or Resale Price Restrictions under a Section 106 Agreement.
  • The mortgage term cannot extend beyond the date that the repayment of the equity loan first becomes due, except government schemes which have the automatic right to extend to cover a main mortgage term so their Equity Loan term is the same as the main mortgage. This only relates to the repayment of the equity loan capital and not the interest.
  • We can't accept remortgage applications where an existing Equity Share Loan will continue. Remortgage applications where the Equity Share Loan is to be redeemed in full can proceed as a standard remortgage application.

Interest rates

Please refer to our current Interest rates and LTV criteria as conditions apply.

Equity Share Loan mortgages are available on Nationwide dedicated equity share purchase products.

Help to Buy (England, Scotland and Wales only)


  • The property being purchased must be your client's main residence and therefore can't be a second home or a Buy to Let property.
  • Your client can't own another, or hold an interest in another property at the time of purchase.
  • Only available on new build properties. Properties which have been previously occupied (by an owner or tenant) can't be purchased on the Help to Buy scheme.
  • Properties which are subject to a Section 106 or Section 75 agreement aren't eligible.
  • Applicants who are non-EEA nationals must have indefinite leave to remain.
  • Acceptable builder incentives are listed on our new build page.
  • Applications will be processed using the same procedures and lending terms as any other Equity Share Loan application. Please refer to our Equity Share Loan Schemes criteria.
Maximum purchase price Interest/fees Repayment
England £600,000 Interest free and carries no fees for the first five years. From year six a fee of 1.75% is payable, which rises annually by RPI inflation plus 1%. Can be repaid at any time within the mortgage term, or on sale of the property.
Wales £300,000 Interest only, with a £1 monthly administration charge payable in the first five years. From year six interest of 1.75% is payable on the equity loan, which rises annually by RPI inflation plus 1%.
Scotland £200,000 in 2018-2021 Interest free and carries no fees for the lifetime of the loan.

Helping your clients pay off their Help to Buy equity loan

Your remortgage clients can capital raise up to 90% LTV for the sole purpose of paying off a Help to Buy equity loan in full. This helps your clients who are reaching their 5 year Help to Buy anniversary, as they'll soon have to start paying interest on the loan, and puts them on the road to full home ownership.

Keying applications:

  • If your clients are looking to borrow between 80% and 90% LTV, we'll now ask you to select the ownership type as 'Standard' within the Loan Requirements screen. Where the question asks 'Does this application relate to a Nationwide or External Scheme?' You'll need to select 'Help to Buy'.
  • Following this, you'll need to select 'Pay off second charge' within the Additional Borrowing screen, which will enable you to access the products.
  • Then key both of the existing loans (i.e. the mortgage with another lender and the Help to Buy equity loan) with a £0 balance. This will instruct the Conveyancer to ensure that both loans are redeemed.
  • Applications below 80% LTV, don't need to select a Nationwide or External Scheme option and should select NO to this question.