Help to Buy London

Help to Buy London

Buy a property with just a 5% deposit and up to 40% equity loan from the Government


The Government has created the Help to Buy London scheme to help home buyers purchase their own new build home in the capital.

Who is Eligible?

Help to Buy London equity loans are available to first time buyers as well as to homeowners looking to move. The home you want to buy must be newly built with a price of up to £600,000

  • Minimum deposit of 5% of the full purchase price
  • The maximum income multiple for a Help to Buy purchase is 4.5x your household joint or single income. The mortgage taken must be on a repayment basis and cannot be interest-free
  • Help to Buy London will carry out a sustainability check when you send your application through using the calculator provided by the Homes and Communities Agency
  • You cannot part exchange your current home to buy a new home under Help to Buy
  • You must not own any other property when you move in to your new home with a Help to Buy equity loan
  • You will not be able to sublet a home purchased under Help to Buy
  • The home you want to buy must be a new build, advertised as Help to Buy by a Help to Buy registered developer, with a maximum price of £600,000. Help to Buy assistance is not available for new builds that are not Help to Buy registered


View a selection of available developments here

How does it work?

With a Help to Buy equity loan the Government lends you up to 40% of the cost of your newly built home, so you’ll only need a 5% cash deposit and a 55% mortgage to make up the rest. You won’t be charged loan fees on the 40% loan for the first five years of owning your home.

After this time interest is charged at 1.75% per annum, increasing each year by the Retail Price Index (if any) plus 1%. The equity loan must be repaid after 25 years, or whenever you sell your home. You can pay the loan back over time in different quantities or all at once, and the amount that you reimburse will depend on the value of your home.

Help to Buy is available in England from house builders registered to offer the scheme and has been available since 2013. In November 2015, Government announced an extension of the initiative up to 2021 (it may close earlier if all of the funding is taken up before 2021).

View Frequently asked questions

For full information see this Help to Buy Buyer’s Guide

To find out how our Independent Financial Advisers can find the best mortgage for you click here or call 020 7650 5113.

Your home is at risk if you do not keep up repayments on a mortgage or other loans secured on it.