London Help to Buy

All you need is a 5% deposit with London Help to Buy

5% deposit + 40% equity loan + 55% mortgage = 100% home ownership

Help to Buy scheme
Help to Buy London scheme example

If you're buying a home in London ask about the HM Government-backed London Help to Buy scheme.

Available to first-time buyers and people already on the property ladder, the scheme requires just a 5% deposit and a repayment mortgage of up to 55% of the value of the property. The remaining 40% of the full purchase price is lent to you in the form of an equity loan backed by HM Government. You won’t be charged interest on the 40% equity loan for the first 5 years of owning your home.


Help to Buy for customers in London

  • London Help to Buy equity loan is available on new-build properties within the 32 boroughs of London and City of London up to £600,000
  • There's no household annual income limit and it's available to all types of home buyers.
  • You only need: - a minimum 5% deposit; and - no more than a 55% repayment mortgage
  • HM Government will lend you an equity loan of up to 40% of the full purchase price of the home, it's interest-free for the first five years.
  • You can repay your London Help to Buy equity loan at any time, when you sell your home,or you can wait until the end of its term
5% deposit + 40% equity loan + 55% mortgage = 100% home ownership

How do I apply for a London Help to Buy equity loan?

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.

 

London Help to Buy equity loan FAQs

Where is the scheme available?
London Help to Buy 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?
HM 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. In addition, it is also possible to repay part of the equity loan subject to certain limits and criteria.

What types of mortgage are available with London Help to Buy?
Repayment mortgages are the only option with this scheme.

Can I use the scheme if I already own a home?
The London Help to Buy scheme is available to both first-time buyers and existing homeowners.

Is the scheme available on pre-owned homes?
No. London Help to Buy is only available on new-build homes like those built by Persimmon.

Is the scheme available as a buy-to-let option?
The London Help to Buy 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 independent financial advisers who can assist you every step of the way.

London Help to Buy 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 London Help to Buy equity loan.

**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 London Help to Buy 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/