Help to Buy Explained

The government will lend buyers up to 20% in England and up to 40% in London of the cost of a new home. Therefore, purchasers using Help To Buy only need a 5% cash deposit and between a 55% and 75% mortgage for the rest of the value of the home.


For the Help to Buy in London, the mortgage must be at least 25% of the value of the property. Furthermore, the combined mortgage and cash contribution for homes in the capital must be a minimum of 60% of the purchase price.


Who can apply for the scheme?

You must be either a first time buyer or homeowner looking to move to use the Help To Buy scheme. 


If you are looking to purchase a second home or a property to rent out, you are not eligible for the scheme. 


How is the loan paid back?

For the first five years of owning your property, you won’t be charged interest on the Help to Buy loan.


From the sixth year, you’ll be charged a fee of 1.75%, rising each year by the increase in the Retail Price Index (RPI), plus 1%.


You can repay the equity loan back at any time, without facing a penalty. The equity loan must be paid back after 25 years, or when you sell your home.


Are there any restrictions?

The maximum purchase price is £600,000. The Help to Buy scheme is not applicable to any properties above this figure.


There are no maximum income requirements. However, you will need to prove that you can meet the mortgage lender’s criteria and have a satisfactory credit score.


If you wish to use the Help to Buy scheme, you can only take out a repayment mortgage. 


What happens when you sell your home?

When you sell your home,  or repay the mortgage in full, you have to repay the equity loan plus a share of any increase in the value of the property.


More information can be found on the government’s Help to Buy website:


Does Southern Space have any Help to Buy homes?

All our one-bedroom apartments at Dalmeny Avenue (Borough of Islington) are eligible for Help to Buy. Please contact our friendly sales team for more details via email or register your interest on our dedicated Dalmeny Avenue website.