The new London Help to Buy scheme has now opened its doors – allowing Londoners to buy a home with just a 5% deposit and a mortgage as low as 55%.
The new London Help to Buy scheme has now opened its doors – allowing Londoners to buy a home with just a 5% deposit and a mortgage as low as 55%, the Communities Secretary Greg Clark announced on 1 February.
From now, first-time buyers and second-steppers will get the opportunity to own a new-build home in the capital with a deposit backed by a 40% equity loan from the government that is interest free for the first 5 years.
London Help to Buy is an extension of the successful Help to Buy scheme that has helped 130,000 people across the country since 2013.
Under the current scheme loans of up to 20% of the property’s price are made available to first-time buyers and home movers on new build homes worth up to £600,000. In London the loans will now be doubled to up to 40%.
Aldermore, Bank of Scotland, Barclays, Halifax, Leeds, Lloyds, Nationwide, Natwest, Royal Bank of Scotland and Teachers Building Societies are offering London Help to Buy from now – enabling Londoners to get on the housing market with a much smaller mortgage.
Help to Buy: Equity loan has been extended to 2021 with a further £8.6 billion; aiming to help up to 145,000 more people take steps towards owning their own home.
Since 2010 the government has helped more than 270,000 into home ownership thanks to the introduction of government schemes including Right to Buy and Help to Buy.
To find more information, please visit the Help to Buy webpage.