London Help to Buy Scheme

What You Need To Know

The Help-To-Buy scheme in London, as it is elsewhere in the UK, is an equity loan from the Government.

The difference is under Help-to-Buy London the Government will lend you up to 40% of the cost of your new home rather than just 20%.
You must pay the remaining 60% of the cost. 5% minimum must be a deposit and the remaining 55% a repayment mortgage.

E.g. for a home priced at £500,000, the government would contribute £200,000 (40%), you would pay a deposit of £25,000 (5%) and your mortgage would be for £275,000 (55%).

You do not pay interest on your equity loan from the Governemnt for the first 5 years of owning your home, then in the sixth year you will pay interest of 1.75%. This interest fee will then raise annually by RPI plus 1%.
The equity loan is for a maximum of 25 or before if the property is sold or mortgage redeemed, whichever occurs first.


  1. The scheme launches on February 1st 2016
  2. Reservations or applications for the 40% loan CANNOT be taken BEFORE Feb 1st
  3. All live Help-To-Buy schemes currently in progress or created prior to Feb 1st will proceed under the existing terms for the 20% loan


  1. You must have a minimum 5% deposit of the full purchase price of your property. E.g. if the home you are buying is £100,000, you must have a deposit of £5000 or more to put down
  2. The mortgage supporting your Help-To-Buy purchase must be a repayment mortgage and can be no more than 4.5 x the household (joint or single) income
  3. You cannot part-exchange your current home and buy a new one using Help-to-Buy; it is one scheme or the other
  4. You must not own any other property at the time you buy a new home with Help-to-Buy
  5. You cannot sub-let a Help-to-Buy property
  6. The home you wish to buy must be a new build, priced at less than £600,000, it must be advertised as Help-To-Buy, by a registered Help-to-Buy builder. Help-to-Buy assistance cannot be offer on new builds that are not Help-to-Buy registered


  1. There are many participating mortgage lenders including the big five: Nationwide, Halifax, NatWest, Santander and Lloyds as well as many others which you can find here.
  2. There are many housebuilders offering Help-To-Buy in London, including: Redrow, Taylor Wimpey and Persimmon. Again a list of all participating house builders can be found here.

Publish date: 15/09/2017