Help to Buy London

How does Help to Buy work?

With the Government backed Help to Buy scheme, buyers can get assistance buying a home with an equity loan of up to 40% of the property purchase price. The Help to Buy equity loan limit was raised from 20% to 40% of the properties purchase value for homes in all London boroughs to reflect the higher property values seen across London.

You will need to contribute as little as a 5% deposit on a newly built home and your mortgage will make up the rest after the 40% equity loan. Currently London Help to Buy equity loans are available to buyers looking to purchase a new build home with a purchase price up to £600,000.

Example: for a home purchased for £400,000

If the home you purchased was £400,000, you will need a (5%) cash deposit of £20,000. You would get £220,000 (55%) from your mortgage with a commercial lender and the remaining £160,000 (40%) from a Government loan. You would need to pay off your mortgage with your share of the money.

Cost of your home £400,000
Your 5% deposit £20,000
Government 40% loan £160,000
Commercial lender 55% mortgage £220,000

 

Watch Owain's story on how he discovered his dream home using Help To Buy with Peabody.

Eligibility for Help to Buy

London Help to Buy is only available on newly built homes which cost £600,000 or less. When you buy your new home with London Help to Buy:

  • you must be able to afford any interest payments, as well as the monthly fee
  • you must not own any other property at the time you buy your new home
  • you must not enter a part exchange deal on your old home
  • you must not sublet or rent out the property, it must remain your primary residence after you buy it

Contact us about Help to Buy

For more information and to see if you are eligible for the London Help to Buy scheme, speak to a member of the Peabody team on 020 7021 4842 or alternatively email enquiries@peabodysales.co.uk. You can also find more information on the Help to Buy Government website.

   

Featured developments available with Help to Buy