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What is London Help to Buy?

The London Help to Buy scheme is available to first-time buyer wanting to get on the property ladder in the London area.

Unlike the normal Help to Buy scheme, which has an equity loan limit of 20%, the London Help to Buy has an increased equity loan of 40% of the total property value, to reflect the difference in the London property market.

London Help to Buy has a £600,000 maximum price limit and is only available on new-build homes within the capital’s 33 boroughs.

To qualify, you will need a deposit of 5% and a mortgage for up to 55% of the value of the home. The Government will then provide an equity loan of up to 40% of the property’s value, which is interest-free for the first 5 years.

For example, for a property in London with a value of £476,000 you will need:

  • 5% deposit of £23,800
  • 55% mortgage of £261,800
  • 40% government equity loan of £190,400
Greenwich Millennium Village Case Study First Time Buyer GMV
Jamie Mead, Greenwich Millennium Village, London

London Help to Buy has a few special requirements:

  • It is available only on homes for sale within one of the 33 London Boroughs.
  • It covers full home ownership only, and is therefore not available for shared equity or shared ownership.
  • It is available for the purchase of a person’s primary home only, so not for second homes, investment or buy-to-let purchases.
  • It only applies to capital repayment mortgages rather than interest-only mortgages.
  • Buyers must not receive help with their deposit from a local authority or other public body.
  • A HomeBuy agent check will be required.