Jargon Busting: London Help to Buy
London Help to Buy explained in 30 seconds
How is the Help to Buy equity loan different in London?
As part of our Jargon Busting in 30 seconds or less series, we’ve taken a look at the London Help to Buy equity loan and how the scheme can help budding buyers in the capital find a home to call their own.
Please note that the Help to Buy equity loan closed to new applicants on October 31st, 2022. Find out more on Share to Buy.
Help to Buy was a government backed scheme which aims to help first time buyers get a foot onto the property ladder. The Help to Buy equity loan enabled purchasers to buy a new build home with the help of an equity loan, also known as shared equity.
If you were buying in London, the government provided a loan of up to 40% of the home, so the purchaser only needed to raise a 5% deposit, with a 55% mortgage making up the rest. As the equity loan counted towards your deposit, you may have been able to take out a mortgage where you might otherwise have struggled.
While London Help to Buy became available in February 2016, the process was almost identical to the normal Help to Buy equity loan just with an increased upper limit of the loan from 20% to 40%.
For information on Help to Buy outside of the capital, you can check out our Help to Buy jargon busting video. To find out more about the Help to Buy scheme, you can also check out our other articles below:
- What is Help to Buy?
- Help to Buy 101
- Help to Buy: Pros and Cons
- Help to Buy: Finding, buying and selling your home
- Help to Buy vs. Shared Ownership
Share to Buy is a one stop shop for affordable homes. On our website, you can search for properties, compare mortgages, and find out all you need to know about alternative home-buying schemes using our FAQs and guides.