What is London Help to Buy?
Help to Buy: Equity Loan scheme (2021 – 2023)
Move to a brand new home at Central Square with just a 5% deposit
New for 2021, Help to Buy: Equity Loan is a government-backed scheme for first time buyers where they can buy a new home up to a value of £600,000 in London, with just a 5% deposit.
How does it work?
If you’re a first-time buyer in England, you can apply for a Help to Buy: Equity Loan which means you only need a 5% deposit. The balance of the purchase price is comprised of a 40% government equity loan from Homes England which is interest free for the first five years* – and your 55% mortgage.
*After five years, an annual fee of 1.75% of the outstanding equity loan is charged. The interest rate will rise each year in April by the Consumer Price Index (CPI), plus 2%. There is also a £1 monthly management fee payable by direct debit. You’ll continue to pay interest until you repay your loan in full. Help to Buy: Equity Loan is subject to terms and conditions. Borrowers will need to meet appropriate criteria to ensure they can pay back the equity loan, as well as passing their chosen lender’s credit and affordability checks.
For more information visit: www.helptobuy.gov.uk/equity-loan/equity-loans/