London help to buy

Buy a new home in London with a 5% deposit

Add to your deposit on a new-build home in London, whether you’re a first-time buyer or moving home.

  • You provide a deposit of 5% of the property’s value
  • The government lends you up to 40% of the value
  • Choose from a wider range of mortgage deals to cover the remaining amount

Your home may be repossessed if you do not keep up repayments on your mortgage.

Are you eligible?

  • You’re 18 or older and buying a new-build property in London worth up to £600,000 that will be your main home
  • You don’t own another property
  • You can provide a deposit of at least 5% of the property’s value

How it works

Adding an equity loan to your deposit means you can apply for a smaller mortgage and choose from a wider range of mortgage deals.

What to do next

You can only buy a property through a house builder who’s registered for the Help to Buy scheme, so you can either search for a property or contact the house builders direct for a list of their eligible properties.  

You should then contact London Help to Buy to apply for an equity loan of up to 40% of the property’s value. If you’re successful, you can add this money to your 5% deposit and apply for a mortgage for the remaining 55% of the property’s value.

Equity loan fees

You won’t have to pay any borrowing fees or interest on the equity loan for the first 5 years after you buy your home, although you can start repaying the loan whenever you want to.

After 5 years, you’ll start paying an interest fee of 1.75% of the amount of your loan at the time you took it out, which will rise each year after that by the increase in the Retail Price Index. Your London Help to Buy agent can explain this in more detail.

Repaying the loan amount

You’ll need to repay the equity loan when you sell the property or when the mortgage is paid off, whichever happens first. You can also repay the loan in instalments over time, although the minimum repayment is 10% of the market value at the time you pay. 

Our current rates

This table shows what the initial interest rate will be, as well as the follow-on rate, the amount you can borrow and any application and early repayment charges. You can sort any of the columns by selecting the column title.

You can save a copy of our tariff of mortgage charges and read our important legal information.

 

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How to apply

After you’ve contacted your London Help to Buy agent to arrange your equity loan, book an appointment with one of our mortgage advisers to start your mortgage application.

Book your appointment by phone

Call us on 0800 197 1081 1 to speak to someone. Lines are open all day, every day – except during the Christmas period, when they may be closed at off-peak times.

Visit a branch

Find a branch near you that offers appointments with mortgage advisers and see when we’re open.

About London Help to Buy

Watch our short video to find out how London Help to Buy could help you own your own home in the capital.

  • Video transcript

More ways to buy your home

Help to Buy Equity Loan scheme

Top up your deposit with an equity loan

With a Help to Buy Equity Loan, you can add to your deposit on a new-build property, whether you’re a first-time buyer or moving home.

Moving home

Moving home

What moving home means for your mortgage

Keep your current mortgage, borrow more or get a different deal – we’ll help take care of your needs so you can concentrate on the move.

Joint mortgages

Buying property with other people

Buying with your partner, family or friends can make sense, so long as you weigh up the benefits and risks of taking out a joint mortgage with others.

Need some help?

You can talk to us about our mortgages online, in branch or by phone at a time that suits you.

Talk to us online

Start a web chat if you’d like to ask us a question online.

Call us

Call us1 today. Lines are open all day, every day – except during the Christmas period, when they may be closed at off-peak times.

0800 197 1081

Visit a branch

Contact a branch that offers appointments with one of our expert mortgage advisers.