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How to use London Help to Buy

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23/01/2017
Qualifying first-time buyers and homemovers in London could be eligible for a government loan equivalent to 40% of the asking price of a newly-built home via Help to Buy London.
How to use London Help to Buy

Given the stratospheric level of property prices in London, in 2016 the government increased the maximum loan limit on the Help to Buy Equity Loan from 20% elsewhere to 40% for buyers in all London boroughs

So when a buyer puts 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
London Help to Buy: example costs

If the home in this example were to be sold for £420,000, you the seller would get £252,000 (60%, from your mortgage and the cash deposit) and you would pay back £168,000 on the loan (40%) to the government. You would need to pay off your mortgage with your share of the money.

There are no 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.

Who qualifies?

London Help to Buy equity loans are available to first-time buyers and homeowners looking to move. The home you want to buy must be newly built with a price tag of up to £600,000.

You cannot to sublet the property 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 scheme is run by the government-appointed Help to Buy London agent. They can guide you through your purchase, from providing general information about the scheme to dealing with your application.

To open the door to owning your home in London, contact the Help to Buy agent for London:

You can get more help and advice from the Money Advice Service and other useful contacts.

 

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