Help to Buy - How does it work in London?
Help to Buy is a government initiative that lends money to first time buyers to purchase a new home, as well as existing homeowners looking to move.
How does it work in London?
If you are looking to buy in London, the government will lend buyers up to 40% of the price of a new home. Therefore, you’ll only need a deposit of 5% of the full purchase price of the home and a 55% mortgage for the rest of the value of the home.
Who can apply for the scheme?
To qualify in London, the home you wish to purchase must be newly built and the price of the property must be under £600K. The Help to Buy initiative is not applicable for properties above this figure.
How is the loan paid back?
The great thing about the Help to Buy loan is that it’s interest free for five years. After the first five years, you will then need to pay an annual fee of 1.75% on the amount of the outstanding loan. This will rise each subsequent year by the increase in the Retail Prices Index (RPI), if any, plus 1%.
Are there any restrictions?
You won’t be able to sublet this home or enter a part exchange deal on your old home. Also, you cannot own any other property at the time you buy your new home with London Help to Buy.
To speak to our friendly sales team about your buying options, click here.
Are you looking for a stylish and modern home in London?
Our brand-new Southern Space development, Bow River Village, is perfectly located on the banks of the River Lea in East London. Featuring a collection of one, two and three-bedroom apartments, all of which are available to purchase on a Help to Buy basis, Bow River Village offers the best of urban living but in a quiet riverside environment.
To receive exclusive email updates about this development, including floorplans, images, open day details, launch dates and prices, register your details with us now at our dedicated Bow River Village website.