Home Buy Help to Buy Help to Buy London Equity Loan

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Help to Buy London

Up to 40% equity loan from the Government with just a 5% deposit


Help to Buy London equity loan

You can get a low-interest loan towards your deposit, to help you get on the property ladder.

  • Interest free loan for 5 years
  • Property will be completing in the next 6 months
  • Only available to first time buyer owner occupiers

Help to Buy properties

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  1. Who is Help to Buy London for?

    If you are a first time buyer that has never owned a property/land ever, Help to Buy London is a government scheme designed to help you advance up the property ladder in London.

    The property you buy must:

    • be a new build
    • have a purchase price of up to £600,000, subject to regional price caps
    • be the only one you own
    • not be sub-let or rented out after you buy it

    Find a Help to Buy home

  2. How does Help to Buy London work?

    Help to Buy is an equity loan from the government up to 40% of the value of a property, provided you have a deposit of 5% you will only need a mortgage of 55% of your new home.

  3. What properties can I buy with Help to Buy London?

    New build properties within the 32 boroughs of London up to the value of £600,000 are eligible for the Help to Buy London scheme.

    When getting a mortgage you will be able to borrow up to a maximum of 4.5 times your salary.

  4. What about outside of London?

    Outside of London the government loan is up to 20% instead of 40%, meaning that your mortgage will be up to 75% of the property rather than just 55%.

  5. How do I pay back the Help to Buy London equity loan?

    You must pay back the loan after 25 years or when you sell your home - whichever comes first.

    You will not be charged any interest on the 40% loan for the first five years of owning your home.

    However a management fee of £1 a month will be applicable from the date of purchase for the duration of the equity loan.

    From year six, a fee of 1.75% is payable on the equity loan, which rises annually by CPI (Consumer Price Index) inflation plus 2%.

    Help to Buy properties

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Help to Buy London equity loan example

For a property worth £400,000 Amount Percentage
Cash deposit £20,000 5%
Equity loan £160,000 40%
Your mortgage £220,000 55%

If the home in the table above sold for £420,000, you'd get £252,000 (60%, from your mortgage and the cash deposit) and pay back £168,000 on the loan (40%). You'd need to pay off your mortgage with your share of the money.

Help to Buy Calculator with equity loan

You could look at New Homes for up to


Minimum 5%
Minimum household income

Based on mortgage of
Example mortgage costs

Based on 2% rate fixed for 5 years over a mortgage term of 35 years
Adjust the deposit and mortgage to change your monthly repayments


Equity Loan


When purchasing using Help to Buy there are two applications to proceed with, the mortgage application and also a separate application for Help to Buy. The Help to Buy application process has its own criteria and affordability checks that often differ from those of the mortgage lenders.
As such, it is vital that you speak to an intermediary who understands the Help to Buy scheme and who has access to the Help to Buy affordability calculator. This will allow you to accurately confirm your budget before looking to view any properties.

This calculation is for illustration purposes only. Please contact our mortgage partner Alexander Hall for Help to Buy mortgage advice.


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