Help to Buy: London

Own your dream home in one of the most sought after cities in the world. From 1 February 2016 the Government increased the Help to Buy Equity Loan scheme’s upper loan limit from 20% to 40% for buyers in all London boroughs.

The Government will lend you up to 40% of the cost of a newly built home with a maximum price of £600,000. Put down a 5% cash deposit and you will only need a 55% mortgage to become a homeowner. There are no fees payable on this loan for the first five years of home ownership.

For example, if you wanted to buy a home worth £420,000, you’d receive an Equity Loan of up to £168,000, pay a cash deposit of £21,000 and your mortgage would be £231,000.

You are only eligible for a London Help to Buy Equity Loan if you do not own any other property, either within or outside of Greater London, at the time you buy your home. You will not be permitted to sublet this home or enter a part exchange deal on your old home.

Standard rules and procedures for Stamp Duty Land Tax (SDLT) apply to any purchase made with an equity loan, which is payable at the time of purchase on the full price of the home.

The London Help to Buy scheme is a variation of the Help to Buy: Equity Loan scheme.

YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. YOU MAY HAVE TO PAY AN EARLY REPAYMENT CHARGE TO YOUR EXISTING LENDER IF YOU RE-MORTGAGE.