London Help to Buy
What is London Help to Buy?
The London Help to Buy scheme is available to first-time buyer or buyers wanting to move up 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.
As with the existing scheme, 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
Our Help to Buy calculator on each property page can help you find out how much deposit you might need in order to borrow your desired amount, and what your mortgage amount could be.
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.