The Mortgage Hut can provide help and advice for those interested in the Help to Buy London scheme which is currently being offered by the government. Like the regular Help to Buy scheme, London Help to Buy can assist first time buyers and home movers by providing an equity loan to use toward their new property. The difference with the London Help to Buy scheme is that it enables those buying in the City of London or any of the London boroughs to borrow up to 40% of the purchase price as an equity loan rather than the 20% loan available for all other areas of the country.
How Does Help to Buy London Work?
A 40% equity loan from the government could help you purchase a home with just a 5% deposit, you will then be left with just 55% of the property price to mortgage. As shown by the illustration below, this could enable to you to purchase £400,000 London property with just a £20,000 deposit:
The equity loan is interest free for the first 5 years, you will then pay 1.75% interest in year 6 after which it will rise annually by RPI (Retail Price Index) inflation plus 1%.
Am I eligible for Help to Buy London Scheme ?
In order apply for the government’s Help to Buy London scheme you must:
Not own any other property
Be purchasing a property in the City of London or one of the London Boroughs
Buy a Help to Buy New Build Property - you can find a list of builders here
Purchase a property which is no more than £600,000
Have a minimum deposit of 5% of the purchase price
There are a number of other criteria and you will be subject to a financial assessment and sustainability calculator - you can find out more on the Help to Buy website.
How a London Mortgage Broker can Help:
If you decide to buy a new home through the London Help to Buy scheme, you will need to find a Help to Buy mortgage The Mortgage Hut can help by:
Finding the right lender for you - there are a number of lenders who currently offer mortgages for the London Help to Buy scheme including Barclays, Lloyds, Natwest, Santander and TSB who offer various rates and deals. The Mortgage Hut can help you find the best mortgage for your circumstances.
Saving you the time and stress of appointments with multiple banks. A qualified mortgage adviser from The Mortgage Hut can quickly search through all suitable mortgages and help you look at your options.
Deal with your application - from paperwork to chasing, our dedicated team of mortgage experts are here to make sure your application runs smoothly and that you get into your new London home as soon as possible
Speak to a Mortgage Adviser about Help to Buy London
Whether you’re interested in finding out more about the Help to Buy London or have already been accepted on the scheme and are ready to apply - come and speak to The Mortgage Hut for trusted mortgage and insurance advice.
Why not give us a call on 0203 096 0110 or contact The Mortgage Hut here to make an appointment with one of our London mortgage advisers.