The Help to Buy London scheme has kicked off today – allowing people living in the city to put down a 5% deposit and take out a mortgage with a 40% equity loan.
This is an extension to the Help to Buy Equity Loan scheme used in the whole of the UK, which offers loans of up to 20% of the property’s price to first-time buyers and home movers on new builds worth up to £600,000.
So far Leeds Building Society, Barclays, NatWest and Royal Bank of Scotland have signed up to the scheme, while Precise Mortgages will join this week or next.
Greg Clark, communities secretary, said: “Our multi-billion pound investment will open the door to thousands of Londoners wanting to own their own home, following in the footsteps of nearly 270,000 people who have already bought through government-backed schemes.
“And now with the improved Help to Buy scheme launching in London, I would urge anyone who thinks home ownership is out of reach to look again at the help on offer.”