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Extending the Help To Buy Scheme for London

London house prices are higher than average UK house prices which can make it difficult for first-time buyers in the capital to get their foot on the ladder. Our new homes and investments team explain how the extended London scheme differs from the rest of the country.

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London Help To Buy Scheme

London Help to Buy is an extension to the equity scheme set up by the UK government to give a leg up onto the property ladder. It’s open to everyone – first time buyers and homeowners looking to move. The scheme is due to close in 2021, so you’ve still got time to take advantage of the scheme.

It’s available on new build properties up to £600,000 within Greater London and you have to have a deposit of at least 5%.

You will need to apply for the scheme which you can do on the London Help to Buy website.

The scheme works by the government lending you up to 40% of the property value. The loan is interest-free for the first five years which means;

  • The mortgage you need is significantly lower than you would normally need as you only need to cover the remaining 55% of the property value (Remember you have to put at least 5% deposit down).
  • The monthly mortgage repayments are a lot lower for the first five years (this is also usually lower than rental fees) but remember you will need to contribute to ground rent and service fees in a new build.

Mortgage Providers

The following banks and building societies support the London Help to Buy scheme;

  • Barclays
  • Lloyds
  • Nationwide
  • Halifax
  • RBS
  • Santander
  • TSB
  • Leeds Building Society

 

Next Steps

If you would like to explore the options available in London, pop into your local James Pendleton high street branch or call our New Homes team: 020 8099 1111

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