Thanks to a number of helpful initiatives, owning a property in London is currently more accessible than it has been in a long time. UK Finance has even stated that the number of first-time buyers in the capital has reached the highest level in three years.
Most notably, the Help to Buy scheme is one of the most popular house-buying initiatives in history. The government scheme, launched in 2013, has so far helped more than 420,000 people get onto the property ladder across the UK by making homeownership more affordable for those opting in.
According to the National Audit Office, Help To Buy has also helped 79% of house-hunters using the scheme to buy a property sooner. But with the current initiative coming to an end later this year, there are still thousands of people unaware of how Help To Buy works and unsure if they are able to benefit. Here you’ll find a helpful overview of the scheme as well as how the system is changing.
How does Help to Buy work in London?
The national Help To Buy: Equity Loan scheme involves the government lending you up to 20% of the cost of your new home, so you only need a 5% cash deposit and a 75% mortgage to make up the rest. In 2016, the Government increased the Help to Buy scheme’s upper loan limit from 20% to 40% for all buyers in London boroughs. This was great news for Londoners eligible for the scheme.
Since then, London buyers have only needed a 5% deposit to secure a home of upto £600,000. Up to 40% of the property value has been provided by an equity loan from the government and the rest will be made up of a mortgage of up to 55% from a bank or building society.
How is Help To Buy changing?
The current scheme is set to end completely by 2023 but from April 2021, the Government is restricting the initiative to first-time buyers alone while regional caps will also be introduced elsewhere across the UK, with the upper limit remaining at £600,000 in London. While first-time buyers won’t be impacted by the cap, those who have previously owned their own home could miss out after the changes come into effect.
Looking for a London property offering Help To Buy?
Then look no further than Leon House. Located in the heart of Croydon this redevelopment is perfect for those who are keen to start house hunting and are considering one and two bedroom apartments.
If you think Help To Buy could be for you, use our Help to Buy calculator to find out how it works and how much the scheme could help you. You can also visit the London Help to Buy scheme site, which is run by the Government-appointed Help to Buy London agent, as well as the Money Advice Service, which has some great independent Help To Buy advice. Fancy seeing what Help To Buy could offer you? Book an appointment to take a tour of Croydon’s Leon House and ask our team about current offers including the January Winter Boost and our Leap into 2020 deal!