London Help to Buy scheme launches today

Posted 1 February 2016 by Keith Osborne

A variation of the popular Help to Buy scheme specifically for London homebuyers launches today, offering buyers an equity loan of up to 40% on a new home... 130,000 homebuyers across the UK already benefitting from the scheme, a Help to Buy option specifically aimed at house-hunters in Greater London launches today, 1 February.

From today, first-time buyers and home movers will be able to buy home in the capital with a deposit of 5% backed by a 40% equity loan from the government that is interest free for the first five years, meaning they only need a mortgage for 55% of the property price.

Announced in Chancellor George Osborne’s Autumn Statement in 2015, London Help to Buy is now available on new homes in any of London’s boroughs, priced up to £600,000. The scheme has been extended to 2021, so even those at the very start of their property buying journey can aspire to purchase with the help of the scheme in the next few years.

Communities secretary Greg Clark says: “We’re determined to make homeownership a realistic aspiration for hard-working young people, wherever they are in the country. Our multi-billion pound investment will open the door to thousands of Londoners wanting to own their own home, following in the footsteps of nearly 270,000 people who have already bought through government-backed schemes.

“And now with the improved Help to Buy scheme launching in London, I would urge anyone who thinks homeownership is out of reach to look again at the help on offer.”

Housing minister Brandon Lewis adds: “Help to Buy has now helped over 130,000 people across the country achieve their aspiration of buying a new or bigger home. The scheme is helping people turn those dreams into a reality, with a fraction of a deposit they would normally require, and from today the new London scheme will help even more people follow in their footsteps.

“Anyone thinking about home ownership and those who believe it is out of reach should look again at the range of government schemes available to them.”

Lenders offering loans on London Help to Buy properties include Aldermore, Bank of Scotland, Barclays, Halifax, Leeds, Lloyds, Nationwide, Natwest, Royal Bank of Scotland and Teachers Building Societies.

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