London Help To Buy - Equity Loan

The London Help to Buy scheme is a version of the Help to Buy Equity Loan, tailored specifically to accommodate the higher property prices in the capital city. Under this scheme, the UK government offered to lend buyers up to 40% of the cost of a newly built home, compared to the 20% offered in other parts of the country.

Please note that the cut-off date for the London Help to Buy scheme, like the broader Help to Buy Equity Loan, was in March 2023. Despite this cut-off date, Austin Friars continues to offer guidance and support to home buyers.

Key Points about the London Help to Buy:

  • Equity Loan: The government offers an equity loan of up to 40% of the property's value, which is higher than the standard 20% in other regions.

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  • Minimum Deposit: Buyers need a minimum deposit of 5% of the property's value. The combination of the 40% equity loan and 5% deposit creates a more substantial deposit for a better chance of securing a mortgage.

  • Property Price Cap: There's a maximum property price limit to be eligible for the equity loan. This limit is higher in London compared to other regions.

  • Interest-Free Period: For the first five years, the equity loan doesn't have interest charges. Monthly mortgage payments are the only requirement during this period.

  • Repayment: The equity loan must be repaid in full when the property is sold or at the end of the mortgage term. The repayment amount depends on the property's current market value.

The London Help to Buy provides a great opportunity for buyers in London to get onto the property ladder, especially with the higher property prices in the city. Buyers can benefit from a larger equity loan, making it easier to purchase a home and secure a favorable mortgage.

For specific eligibility criteria and the most up-to-date information, it's best to consult a mortgage adviser or visit the official Help to Buy website.