The official Government Help to Buy website
To reflect the current property prices in London, from 1 February 2016 the government increased the Help to Buy: Equity Loan scheme’s upper loan limit from 20% to 40% for buyers in all London boroughs.
The London Help to Buy scheme could help you realise the dream of owning your own home in the capital. When you put down as little as a 5% deposit on a newly built home, you can get a government equity loan – for up to 40% of the purchase price.
Example: for a home with a £400,000 price tag
If the home in the example above sold for £420,000, you would get £252,000 (60%, from your mortgage and the cash deposit) and you would pay back £168,000 on the loan (40%). You would need to pay off your mortgage with your share of the money.
You won’t be charged loan fees on the 40% loan for the first five years of owning your home.
Aldermore, Bank of Scotland, Barclays, Halifax, Leeds, Lloyds, Nationwide, NatWest, Newcastle, Royal Bank of Scotland, Santander, Teachers and TSB offer London Help to Buy.
London Help to Buy Equity Loans are available to first time buyers as well as homeowners looking to move. The home you want to buy must be newly built with a price tag of up to £600,000.
You won’t be able to sublet this home or enter a part exchange deal on your old home. You must not own any other property at the time you buy your new home with London Help to Buy.
The London Help to Buy Equity Loan scheme is run by a government-appointed Help to Buy agent. They can guide you through your purchase, from providing general information about the scheme to dealing with your application.
To find out more about applying for Help to Buy:Equity Loan in London visit the Help to Buy agent website, call 03333 214 044 or look out for the Help to Buy logo on new-build developments and ask about the scheme there.
The Help to Buy agent for London provides the administration of the Help to Buy: Equity Loan scheme only. They cannot guide potential purchasers on wider housing options.
To explore all other low-cost home ownership options in Greater London please visit the Mayor’s Homes for Londoners website.
Alternatively you can explore many national housing schemes that could help you buy in the capital on the Government’s Own Your Home website.