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London Help to Buy unpacked in five easy steps

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24 March 2020 | Location

London Help to Buy

What is it?

London Help to Buy is a government scheme that helps people buy their own new build home in Greater London.
If you use the scheme, the government will lend you 40% of the property’s value in the form of an equity loan. You’ll then have to put down a minimum 5% deposit and take out a mortgage to pay the remaining 55% of the property price.


What will you need?

To be eligible for London Help to Buy:
- You must be a UK resident
- The value of your new home can be up to £600,000
- You must have a deposit of at least 5%
- You must live at the property, you can’t sub-let or rent it out
- You must secure a mortgage
- You must be able to afford the repayments


What happens once you’ve purchased your home?

You’ll have five years of interest-free equity loan repayments with London Help to Buy, but in year six, you’ll have to start paying 1.75% interest on the amount you originally borrowed. This rate then slowly increases by RPI plus 1%.
You have no immediate obligation to repay the equity loan back, but it’s important to know that you’ll have 25 years to make full repayment, either by selling your home or by your own means – subject to valuation.


What happens when London Help to Buy ends?

If you’ve purchased a home with London Help to Buy, the fact that the scheme is ending will not affect you or the deal you entered into. However, you will not be able to use the scheme again to purchase another home.


Will something replace London Help to Buy?

Yes, there will be a variety of schemes and alternatives for buyers to consider. In April 2021, the Government will be replacing London Help to Buy with another scheme to continue to enable first time buyers to get onto the property ladder.
This new option will run from April 2021 until March 2023, and still allow for buyers to borrow up to 40% of the cost of a new build home in London. You can read more about this as new information is released on


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