Posted 30 December 2015 by Keith Osborne
Help to Buy London, available in all Greater London boroughs, varies slightly from the national scheme to take into account the generally higher property prices in the capital. The buyer still needs to have a 5% deposit, but the equity loan provided is 40% of the property price, so the purchaser only needs to find a mortgage for the remaining 55%.
|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 for 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.
The scheme is open to first-time buyers and existing property owners and is only available on new build homes.When you buy the property it must be your sole property and a place you intend to live in, and you won't be able to rent it out. The maximum price of the property is £600,000. It's available to all UK residents who live in one of the 32 London boroughs or the City of London, with no restriction on age or earnings.
In order to find out more about Help to Buy London you can read our guide or 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 a household income of £90,000 or less, be unable to afford a suitable home through the open market and not currently own a home. You can find a list of available properties on the First Steps website.