Help to Buy in London

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Help to Buy London
The Help to Buy scheme is designed to help first-time buyers to purchase affordable new build homes in London. Find out how the scheme can benefit you with WhatHouse?

The Help to Buy scheme has been designed to help first-time buyers purchase affordable new build homes.

London Help to Buy was relaunched on 1 April 2021 and offers a 40% equity loan from the government on a five-year interest-free basis. You only have to provide 5% of the new property value for the deposit, on properties up to £600,000.

After the five years of the interest-free equity loan, you will be required to pay an interest fee of 1.75% of the amount you borrowed from the Help to Buy loan. The government equity loan lasts for a maximum of 25 years, or earlier if the property is sold before then. When selling the property, the government must receive 40% of the property value at the point of sale.

Many housebuilders offer the London Help to Buy scheme on their new developments. This scheme is available to first-time buyers who live within the 32 London Boroughs or City of London.

Many buyers who manage to purchase a property through London Help to Buy often find their monthly mortgage payments are far less than they were previously paying for rented accommodation.

Working example

Property price £500,000 (100%)
Initial deposit £25,000    (5%)
Equity loan £200,000    (40%)
Remaining mortgage £275,000    (55%)

 

Case Studies
10 February 2021
The Help to Buy assistance scheme has played an essential role in these buyers purchasing their ideal first home...
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Charlotte in her new home at The Gallery
17 December 2019
Charlotte had her heart set on a home at Peabody’s Camberwell development, The Gallery...

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Amanda Parment in her new home
18 June 2019
27-year-old Amanda Parment recently purchased her first home at Southern Space's Dalmeny Avenue in Islington...
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FAQ
Can I buy a home off-plan?
Do I have to pay stamp duty?
Can I rent out my Help to Buy home once its bought?
Can I change the property in any way?
Can I get help with benefits to pay the Help to Buy fees, if I lose my job?
What's best for me, equity loan or the mortgage guarantee scheme?
Recent News
Eastman Village (Barratt London)
12 March 2021
Barratt London advises first-time buyers on the benefits of using the new version of the government-backed Help to Buy scheme...
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15 February 2021
The WhatHouse? team brings you the latest news for house-hunters in the western boroughs of the capital...
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Ridgeway Views (Barratt London)
9 February 2021
Our favourite new home for sale is a luxurious apartment at Barratt London’s Ridgeway Views in Mill Hill…
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