London Help to Buy at Greenwich Millenium Village
What is London Help to Buy?
To reflect the difference in the London property market the Government has increased the equity loan available to London home buyers.
The London Help to Buy scheme launched on 1st February 2016 and is aimed to help first time buyers or second steppers to buy a new-build home in the capital.
The scheme doubles the upper limit of the government equity loan, from up to 20% of the property’s value to 40%.
As with the existing scheme, London Help to Buy has a £600,000 maximum price limit and is only available on new-build homes within the capital’s 33 boroughs.
To qualify, you will need a deposit of 5% and a mortgage for up to 55% of the value of the home. The Government will then provide an equity loan of up to 40% of the property’s value, which is interest free for the first 5 years.
For example, for a property in London with a value of £476,000 you will need:
5% deposit of £23,800
55% mortgage of £261,800
40% government equity loan of £190,400
London Help to Buy has a few special requirements:
- It is available on homes for sale within one of the 33 London Boroughs.
- It is available to UK citizens and those with a right to remain indefinitely in the country.
- It covers full home ownership only, and is therefore not available for shared equity or shared ownership.
- It is available for the purchase of a person’s primary home only, so not for second homes, investment or buy-to-let purchases.
- It only applies to capital repayment mortgages rather than interest-only mortgages.
- Buyers must not receive help with their deposit from a local authority or other public body.
- A HomeBuy agent check will be required.