NatWest/RBS to lend on Help to Buy London
The Help to Buy London scheme was announced in Osborne’s Autumn Statement last year in a bid address affordability issues faced by buyers in the capital.
It will allow buyers with a minimum 5% deposit to get an equity loan of up to 40% of the purchase price of a new-build home, as opposed to 20% in the rest of the country.
The maximum value allowed for a home bought with an equity loan is £600,000.
Lloyd Cochrane, head of mortgages at NatWest and RBS said: “With property prices continuing to rise, we understand how difficult it is for people to get on the London property ladder. The Help to Buy schemes have been a help to a great deal of customers facing the prospect of raising a large deposit, so this new scheme for London should open the way for more people to buy their dream home.”
Graham Felstead, head of NatWest Intermediary Solutions, added: “This is a great extension to a scheme which has already had a great impact on first-time buyers.”
The lenders will accept applications through the scheme from 1 February.