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London Help to Buy scheme

Help to Buy in London

You just need a 5% deposit with London Help to Buy

5% deposit + 40% equity loan + 55% mortgage = 100% home ownership


Help to Buy Scotland

If you're buying a home in London ask about the HM Government-backed London Help to Buy scheme.

Available to first-time buyers and people already on the property ladder, the scheme requires just a 5% deposit and a repayment mortgage of up to 55% of the value of the property. The remaining 40% of the purchase price is lent to you by HM Government in the form of an equity loan. You won’t be charged interest on the 40% equity loan for the first 5 years of owning your home.

Help to Buy scheme
London Help to Buy scheme example

About London Help to Buy

  • The London Help to Buy equity loan is available on new-build properties within the 32 boroughs of London and City of London up to £600,000
  • There's no household annual income limit and it's available to all types of home buyers.
  • You only need: - a minimum 5% deposit; and - no more than a 55% repayment mortgage
  • HM Government will lend you an equity loan of up to 40% of the full purchase price of the home, it's interest-free for the first five years
  • You can repay your London Help to Buy equity loan at any time, when you sell your home,or you can wait until the end of its term
5% deposit + 40% equity loan + 55% mortgage = 100% home ownership

How do I apply for London Help to Buy scheme?

This is the easy part: just contact our friendly sales executives at any one of our developments across London and they can use their expertise and contacts to guide you every step of the way.

 

London Help to Buy equity loan FAQs

Where is the scheme available?
London Help to Buy is available across all Charles Church developments within the 32 boroughs of London and City of London on homes up to £600,000.

Can you clarify how the equity loan works?
HM Government will provide you with an equity loan up to 40% value of the property. This loan is interest free for the first five years. From year six a fee of 1.75% is payable and will rise annually by RPI inflation plus 1%.

What are the repayment terms of the equity loan?
You can repay the loan any time within the first 25 years (or the terms of the mortgage), or when you sell the property. In addition, it is also possible to repay part of the equity loan subject to certain limits and criteria.

What types of mortgage are available with Help to Buy London?
Repayment mortgages are the only option with this scheme.

Can I use the scheme if I already own a home?
The London Help to Buy scheme is available to both first-time buyers and existing homeowners.

Is the scheme available on pre-owned homes?
No. London Help to Buy is only available on new-build homes like those built by Persimmon.

Is the scheme available as a buy-to-let option?
The London Help to Buy equity loan is only available to purchasers using the property as their main residence.

Where can I get financial advice from?
Charles Church can put you in touch with a list of recommended independent financial advisers who can assist you every step of the way.

London Help to Buy equity loan terms and conditions

The London Help to Buy equity loan scheme has specific terms and conditions and is subject to affordability criteria as defined by the Homes and Communities Agency. Help to Buy London equity loan scheme is available on all plots within the 32 boroughs of London and City of London up to £600,000, subject to status, terms and conditions apply. Help to Buy London equity loan eligible applicants will be offered an equity loan of up to a maximum of 40% of the purchase price (based on the open market value). The registered provider will hold the second charge on the property. Applicants are required to fund at least 60% of the purchase price by means of a conventional mortgage, savings and any deposit where required. Applicants must obtain their conventional mortgage from a qualified lending institution (e.g. a bank or building society). For the first five years there is no fee charged on the equity loan component. At the start of year six a fee is collected of 1.75% of the market value of the property at the time the loan is entered into multiplied by the outstanding percentage under the equity loan, the annual fee of 1.75% will be uplifted by RPI +1% p.a.

**Available on selected plots subject to status. Terms and conditions apply.

A professional legal adviser is required to carry out the legal formalities of buying the home and to represent your interests. Charles Church can provide you with a list of recommended solicitors and/or financial advisers as necessary. Charles Church cannot advise you on a mortgage. The Help to Buy London equity loan scheme is subject to availability and may be withdrawn at any time without notice. Not to be used in conjunction with any other purchase assistance scheme, offer or promotion. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE, YOUR EQUITY LOAN OR OTHER DEBT SECURED ON IT. For full details on the Help to Buy scheme please see the Government's most recent document.

Help to Buy related links: