First Time Buyers Guide: London's Help to Buy Scheme
- Jan 3, 2020
- 2 min read
An enlightening feeling of Joy pours into our hearts at the beginning of each moment which winds up becoming an unforgettable time in our life whereby each new memory paves the way for each new milestone which commemorates the beginning of something new. Well, there's no doubt about it that we all remember those First Steps which seemed so far away; that awkward First Kiss which lit up every single star in the sky, and lets not forget about the First Day of
School when there's suddenly a flicker of hope amongst all the strange new faces where fate blesses us with meeting our future friends for life.
London Help to Buy equity loans are available to first time buyers as well as homeowners looking to move. The home you want to buy must be newly built with a price tag of up to £600,000.
You won’t be able to sublet this home or enter a part exchange deal on your old home. You must not own any other property at the time you buy your new home with London Help to Buy.
The London Help to Buy scheme could help you realise the dream of owning your own home in the capital. When you put down as little as a 5% deposit on a newly built home, you can get a Government equity loan – for up to 40% of the purchase price.
Case Study 1: Harry is a first time buyer living in London who has fallen in love with his new home which flaunts a hefty £400,000 value.
Harry's home in the example above sold for £420,000, you would get £252,000 (60%, from your mortgage and the cash deposit) and you would pay back £168,000 on the loan (40%). You would need to pay off your mortgage with your share of the money.
You won’t be charged loan fees on the 40% loan for the first five years of owning your home.
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