London Help to Buy officially launched

The new London Help to Buy scheme has been officially launched, allowing London residents to buy a home with a five per cent deposit.

The scheme is available from 1 February and will help first-time buyers and ‘second-steppers’ to purchase a new-build home in the capital with a mortgage as low as 55 per cent.

The new system will allow prospective buyers to purchase a property with a deposit backed by a 40 per cent equity loan from the government, which is interest free for five years. This replaces the older scheme where loans were only available up to 20 per cent of the property’s price.

Communities Secretary Greg Clark said: “We’re determined to make home ownership a realistic aspiration for hard-working young people, wherever they are in the country.

“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.”

Housing Minister Brandon Lewis said: “Help to Buy has now helped over 130,000 people across the country achieve their aspiration of buying a new or bigger home.

“The scheme is helping people turn those dreams into a reality, with a fraction of a deposit they would normally require, and from today the new London scheme will help even more people follow in their footsteps.

“Anyone thinking about home ownership and those who believe it is out of reach should look again at the range of government schemes available to them.”