London Help to Buy
Buy a new home in London with a 5% deposit
With a London Help to Buy Equity Loan you can 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 value
- The government lends you up to 40%
- 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.
How it works
By adding an equity loan to your deposit, you’ll be able to apply for a smaller mortgage and choose from a wider range of mortgage deals.
Are you eligible?
You can apply through the London Help to Buy Equity Loan scheme if:
- You’re buying a new-build property in London worth up to £600,000 that will be your main residence
- You don’t own another property
- You can provide a deposit of at least 5% of the property’s value
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
There aren’t any borrowing fees or interest on the equity loan for the first 5 years after you buy your home.
After 5 years, there will be 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 outlines 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.
The current mortgages data is unavailable. A complete list of all mortgage rates is available for download here.
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Initial interest rate
Follow on interest rate
Overall cost for comparison
Loan to value
Early repayment charge
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.
More ways to buy your home
Help to Buy Equity Loan
By adding an equity loan to your 5% deposit you can apply for a smaller mortgage and choose from a wider range of deals.
Help to Buy Mortgage Guarantee
Get help buying your first or next home if you’re finding it hard to save the deposit you need.
A way for families to help you get on or move up the property ladder – without spending their savings. 2
Subject to status and availability. You must be 18 years old or over to apply for a mortgage.
- Lines are open all day, every day – except during Bank Holidays and Christmas period, when lines may be closed at off-peak times. Call charges.
- Your family’s deposit may be forfeited if you don’t keep up repayments on your mortgage.