Posted 11 December 2015 by Keith Osborne
Help to Buy London varies slightly from the national Help to Buy: Equity Loan scheme available in other areas of the UK, taking onto account the generally higher property prices. With Help to Buy London an equity loan of 40% is given once the buyer puts down an initial deposit of 5%. This means you'll receive a mortgage of 55% from a commercial lender.
|Property Price||£400,000 (100%)|
|Initial deposit||£20,000 (5%)|
|Equity loan||£160,000 (40%)|
|Remaining mortgage||£220,000 (55%)|
As with the main Help to Buy scheme, a monthly interest charge will be liable on the loan amount after five years and the loan itself has to be paid off within 25 years. Many buyers who manage to purchase a property through Help to Buy often find their monthly mortgage payments are far less than they were previously paying for rented accommodation.
Equity loans with Help to Buy London are available to homeowners already on the property market as well as first-time buyers. Once you buy your home you won't be able to rent it out. When you buy the property it must be your sole property and a place you intend to live in. You must buy a newly built home which has a value up to £600,000. It's available to all UK residents of any age who live in one of the 32 London boroughs or the City of London.
If you're wondering what properties are eligible for Help to Buy London, you'll see a specific Help to Buy London logo next to listings. In order to find out more about Help to Buy London you can contact Aldwyck Housing Group who are the Help to Buy London agent appointed by the government.
Share to Buy
London also has its own version of Shared Ownership called Share to Buy. To qualify, you must have an income of £90,000 or less, be unable to buy a home through the open market as well as not currently own a home or have owned a home at any time. Only certain properties are made available for Share to Buy and priority is given to service personnel who want to buy a home. You can find a list of available properties on the First Steps website.