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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 buying a new home.

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

Buying your home with an equity loan

An equity loan enables you to apply to borrow a lower mortgage amount, which means you’ll be able to choose from a wider range of mortgage deals.

Only a 5% deposit needed

You put up at least 5% of the property purchase price, although you can provide a higher amount.

Apply for an equity loan

If the property you’re buying is within London, you could borrow up to 40% of the purchase price from the government.

Apply for a mortgage with us

Your mortgage amount provides the rest of the money you need to buy the property.

Are you eligible?

You can apply through the London Help to Buy equity loan scheme if you

  • Are 18 or older and buying a new-build property within London that you’ll be living in as your main home
  • Don’t own another property
  • Can provide a deposit of at least 5% of the property’s value

How it works

How to get started

Contact London Help to Buy to apply for an equity loan of up to 40% of the property purchase price.

If you’re successful, you can add this money to your 5% deposit and apply for a mortgage for the amount you need to buy your home. 

Example based on a property worth £400,000

Example property purchase price

£400,000

Your 5% deposit

£20,000

40% equity loan

£160,000

Mortgage from us (55%)

£220,000

Example based on a property worth £400,000

Equity loan fees

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

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 equity loan amount

The charges you pay for the equity loan don’t reduce the amount you borrowed from the government. You can start repaying the amount you borrowed as soon as you want to reduce the government’s share in your home’s equity. The minimum repayment is 10% of the market value at the time you pay (or 5% in Scotland). The equity loan must be repaid when the property is sold or when the mortgage is paid off.

Our latest rates

You can also check our full mortgage range [PDF, 562KB] to see if our other mortgages are suitable for you, download our tariff of mortgage charges [PDF, 265KB] and read our legal information.

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How to apply

After you’ve contacted your London Help to Buy agent to arrange your equity loan, you’ll need to book an appointment to start your mortgage application with us.

Call us

Whether you’re a borrower or a helper, get started by calling 0333 202 7580 to book an appointment.

Lines are open 8am to 8pm, every day. To maintain a quality service, we may monitor and record phone calls. Call charges.

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 buy a home in the capital.

Need some help?

Chat to us online

Start a web chat if you have a question about applying (we can’t give advice about choosing a mortgage during web chats).

Visit a branch

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

More ways to buy your home

Family Springboard Mortgage

Buy your home with help from a loved one

Saving for your first home isn’t easy – now family and friends can help with the deposit.

Shared ownership mortgages

Buy a share of a home and pay rent on the rest

When you part-buy, part-rent a home through shared ownership, you can apply for a smaller mortgage amount – so your deposit could be lower, too.

Barclays Green Home Mortgages

Buy an energy efficient home and get a lower rate

We’ll reward you with a lower mortgage rate on certain deals when you buy an energy efficient home – it’s just one of the ways we support greener choices.