Help to Buy London
Apply for up to 40% Equity Loan with Help to Buy
5% deposit + 40% equity loan + 55% mortgage = 100% home ownership
Help to Buy London is a Government-backed initiative that aims to make mortgages more readily available to home buyers in London† who can't afford a large deposit.
Available to existing homeowners and first-time buyers, the London-specific Help to Buy scheme requires just a 5% deposit and a mortgage of up to 55% of the value of the property.
So you pay just 60% of the property price now, and the remaining 40% is provided by a Government equity loan which is interest free for the first 5 years.
About Help to Buy London
Help to Buy London scheme example
- You will only need a minimum 5% deposit
- The Government could lend you up to 40% of the value of your property through an equity loan - interest free for the first 5 years! You can repay this at any time or on the sale of your home
- You will only need to secure up to a 55% mortgage – which means you could qualify for some of the best rates available
- †Available on all Persimmon homes within the 32 boroughs of London and City of London up to £600,000
- Help to Buy London is available to all types of home buyers - first-time buyers and existing homeowners
- Help to Buy London is only available on new-build properties such as ours
How do I apply for Help to Buy London?
This is the easy part: just contact our friendly sales advisors at any one of our developments across London† and they can use their expertise and contacts to guide you every step of the way.
Need alternative locations?
Persimmon has several other developments in and around London that is offering the Help to Buy Equity Loan scheme. Contact the development to find out more.
Help to Buy London Equity Loan FAQs
Where is the scheme available?
†Help to Buy London is available across all Persimmon developments within the 32 boroughs of London and City of London on homes up to £600,000.
Can you clarify how the equity loan works?
The Government will provide you with an equity loan up to 40% value of the property. This loan is interest free for the first five years. From year six a fee of 1.75% is payable and will rise annually by RPI inflation plus 1%.
What are the repayment terms of the equity loan?
You can repay the loan any time within the first 25 years (or the terms of the mortgage), or when you sell the property.
What types of mortgage are available with Help to Buy?
Repayment mortgages are the only option with this scheme.
Can I use the scheme if I already own a home?
The Help to Buy London is available to both first-time buyers and existing homeowners. Our Home Change scheme can help sell your property for you.
Is the scheme available on pre-owned homes?
Help to Buy London is only available on new-build homes like those built by Persimmon.
Is the scheme available as a buy-to-let option?
The scheme is only available to purchasers using the property as their main residence.
Where can I get financial advice from?
Persimmon can put you in touch with a list of recommended financial advisers who can assist you every step of the way.
Help to Buy related links:
Help to Buy London equity loan terms and conditions
The Help to Buy London equity loan scheme has specific terms and conditions and is subject to affordability criteria as defined by the Homes and Communities Agency. Help to Buy London equity loan scheme is available on all plots within the 32 boroughs of London and City of London up to £600,000, subject to status, terms and conditions apply. Help to Buy London equity loan eligible applicants will be offered an equity loan of up to a maximum of 40% of the purchase price (based on the open market value). The registered provider will hold the second charge on the property. Applicants are required to fund at least 60% of the purchase price by means of a conventional mortgage, savings and any deposit where required. Applicants must obtain their conventional mortgage from a qualified lending institution (e.g. a bank or building society). For the first five years there is no fee charged on the equity loan component. At the start of year six a fee is collected of 1.75% of the market value of the property at the time the loan is entered into multiplied by the outstanding percentage under the equity loan, the annual fee of 1.75% will be uplifted by RPI +1% p.a.
**Available on selected plots subject to status. Terms and conditions apply.
A professional legal adviser is required to carry out the legal formalities of buying the home and to represent your interests. Persimmon can provide you with a list of recommended solicitors and/or financial advisers as necessary. Persimmon cannot advise you on a mortgage. The Help to Buy London equity loan scheme is subject to availability and may be withdrawn at any time without notice. Not to be used in conjunction with any other purchase assistance scheme, offer or promotion. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE, YOUR EQUITY LOAN OR OTHER DEBT SECURED ON IT. For full details on the Help to Buy Scheme please see the Government's most recent document.