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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.

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

The current mortgages data is unavailable. A complete list of all mortgage rates is available for download here.

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Product name:

Initial interest rate

Follow on interest rate

Overall cost for comparison

Loan to value

Mortgage fee

Early repayment charge

How to apply for a mortgage

To apply, you’ll need to speak to one of our mortgage advisers. You can call us or visit a branch to book an appointment.

Call 0800 197 10811

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.

Family Springboard

A way for families to help you get on or move up the property ladder – without spending their savings. 2

Buying with others

If you can't afford a place of your own, buying with others could help you get on the property ladder.

Important information

Subject to status and availability. You must be 18 years old or over to apply for a mortgage.

  1. 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.
  2. Your family’s deposit may be forfeited if you don’t keep up repayments on your mortgage.