Help to Buy London
Apply for up to 40% with Help to Buy: Equity Loan London
5% deposit + 40% equity loan + 55% mortgage = 100% home ownership
Help to Buy: Equity Loan 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: Equity Loan 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: Equity Loan 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 are offering the Help to Buy: Equity Loan London 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
London Help to Buy: Equity Loan scheme is available on all plots in the capital, with a full purchase price up to £600,000, subject to status. Eligible applicants will be offered an equity loan of up to 40% of the purchase price at the open market value. Applicants are required to fund at least 60% of the purchase price with a conventional main mortgage and minimum of 5% deposit. For the first five years there is no interest charged on the equity loan. At the start of year six, 1.75% interest is payable on the equity loan, which rises annually by RPI inflation plus 1%. The equity loan is provided by the Government's Homes and Communities Agency (trading as Homes England), and held as a second charge on the Help to Buy home. Terms and conditions apply. Applicants should seek independent financial advice, and get information and guidance on applying for a Help to Buy: Equity Loan at www.helptobuy.gov.uk
**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 London Help to Buy please visit: www.helptobuy.gov.uk/equity-loan/london-help-to-buy/