We provide the complete service to buy your home in London using the Governments new Help to Buy scheme. You can buy a property using just a 5% deposit
, backed with a Government Equity Loan of up to 40%
with the balance of the purchase price being funded by a Help to Buy Mortgage.
For this scheme you must have a mortgage which is registered as a first charge and the the equity loan is registered as a second charge. The equity loan is for a maximum of 25 years or before if the property is sold or the mortgage is redeemed, whichever term is the shorter of the two.
You will not be charged any interest on the 40% loan for the first five years of owning your home. However a management fee of £1 a month will be applicable from the date of purchase. From year six, a fee of 1.75% is payable on the equity loan, which rises annually by RPI (Retail Price Index) inflation plus 1%.
Help to Buy London Example
If the home in the example above sold for £210,000, you would get £168,000 (80%, from your mortgage and the cash deposit) and you would pay back £42,000 on the loan (20%). You would need to pay off your mortgage with your share of the money.
Can you use a Help to Buy ISA?
When buying using the Government's London Help to Buy scheme you can use the Help to Buy ISA to fund your deposit. The maximum deposit you can save uder the scheme is £15,000. Click to read more about the - Help to Buy ISA