London Help To Buy

How London Help to Buy works April 2021 - 2023

A new version of the Help to Buy: Equity Loan scheme will be available from April 2021 until March 2023 and will only be available to first-time buyers.

As with the previous version of the scheme, its aim is to make mortgages more affordable to buyers. It allows buyers to purchase a new-build home with a deposit of as little as 5%, with the Government continuing to lend buyers up to 40% of the cost of a new build home in London This leaves just 55% of the cost of the property to mortgage and provides access to more affordable mortgage rates.

Take advantage of the benefits that are available:

  • Only a 5% deposit needed
  • 40% interest free loan for the first 5 years
  • Ownership of 100% of your home
  • Buying is more affordable with lower monthly mortgage payments during the interest free period

Try Our Help to Buy Calculator

Why not use our Help to Buy calculator below to find out how you could secure your dream home at Greenwich Millennium Village.

Min 300k Max £600k

Results with help to buy

Estimated monthly mortgage repayment

5% deposit

40% Help to Buy Equity Loan

55% mortgage

*YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. Help to Buy scheme is available for first time buyers only. 40% loan is interest free for the first 5 years. 5% deposit is applicable with the Government’s Help to Buy scheme. Selected plots only. Buyer will need to have sufficient funds to pay legal and sundry costs. Equity deposit percentage may be subject to lender’s and Government criteria. Prospective buyers should always seek independent financial advice before proceeding. Greenwich Millennium Village works with a number of independent financial advisers who are able to provide appropriate advice. Greenwich Millennium Village terms and conditions apply. Subject to status. Typical interest rate taken from a mortgage comparison search on 02/01/2020 and based on putting down a 5% deposit on a property valued at £399,995 with a 2 year fixed mortgage. For accuracy, prospective buyers should always seek independent financial advice before proceeding.

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Help to Buy requirements

To qualify for a Help to Buy equity loan, you must:

  • Sign a legal declaration to confirm that you are first-time buyers
  • Not own a home or residential land now or in the past in the UK or abroad
  • Take out a repayment mortgage that is valid for the duration of the equity loan
  • Not have had any form of Sharia mortgage or Home Purchase Plan in the past.
  • Be able to afford the monthly mortgage repayments
  • If you are applying to use the Help to Buy scheme and you are married or in a civil partnership, you will have to apply jointly with your spouse or civil partner. All parties buying the home must meet eligibility criteria.

Repaying the Help to Buy: Equity loan

The good news is that for the first 5 years, the equity loan is interest free with just a £1 monthly management fee to pay.

From year six, you’ll have to pay the £1 monthly management fee and a monthly interest fee of 1.75% of the equity loan. Interest fees will rise each year in April in line with the Consumer Price Index (CPI), plus 2%. You’ll continue to be pay interest until the loan has been repaid in full.

The loan must be repaid when you sell your property, pay off your repayment mortgage, or at the end of the loan.

If you still have the loan when you do come to sell, you will repay it at this stage and the amount you pay back will depend on how much your home is worth. So, if you initially purchased with a 5% deposit and 55% mortgage, you would need to repay 40% of the home’s value at the time you sell.

You can make repayments to reduce how much you owe at any time, but if you are making a part repayment it must be of at least 10% of what your home is worth. For example, if you are in London and you took out a 40% loan, you could repay 10%, 20% or 30% at a time. The amount you need to pay back will be based on the current market value of your home.

*40% loan is interest free for the first 5 years. 5% deposit is applicable with the Government’s Help to Buy scheme. Calculation above is indicative only.  Available on selected plots only. Buyers will need to have sufficient funds to pay legal and sundry costs.  Equity deposit percentage may be subject to lender’s and Government criteria. Prospective buyers should always seek independent financial advice before proceeding. Greenwich Millennium Village Ltd works with a number of independent financial advisers who are able to provide appropriate advice. Greenwich Millennium Village Ltd terms and conditions apply. Subject to status.