What is Help to Buy?
A number of schemes are available from the government to help you buy a home. One of these is the London Help To Buy equity loan scheme. The scheme is available on new build properties valued up to £600,000 to all UK residents, of any age, within the 32 London boroughs and the City of London.
The government has provided information to explain the scheme in more detail.
How does the London Help To Buy equity loan work?
If you can offer a deposit of 5% of your home’s total value then the government will boost your deposit with a loan of up to 40% of the total cost of the property. This effectively means you have a larger deposit to buy a home. Your mortgage will make up the other 55%.
With the larger deposit available to you under the London Help To Buy scheme, you should be able to get a lower interest on your mortgage. This gives you more flexibility in your repayment and makes it easier to obtain a mortgage agreement. Help To Buy also means that you won’t have to take out an expensive 95% mortgage. You won’t need to pay interest on the government’s equity loan for the first five years.
London Help To Buy is only suitable if you’re sure that you’ll always be able to afford the mortgage repayments for your property. If you don’t repay your loan within the first 5 years, you will incur a monthly interest charge. If you want to repay it after the initial five year period you will need to repay it in chunks of at least 10%. The amount you repay will also fluctuate with the price of your home, meaning that it isn’t a fixed sum.
View the full terms and conditions
Other schemes that are available
In addition to the London Help To Buy equity loan scheme, L&Q also offer another scheme called Shared Ownership. Find out more about Shared Ownership.
Unsure which scheme is right for you? We’ve taken a detailed look at the pros and cons of each scheme.
Please note L&Q do not currently offer the Help to Buy mortgage guarantee.
Check our property listings to see if the London Help To Buy equity loan is available at the L&Q developments you’re interested in.