Help to Buy Properties in London

Location
Borough
Barnet
5 projects
Bexley
1 project
Brent
4 projects
Bromley
2 projects
Camden
2 projects
City of London
0 projects
Croydon
3 projects
Ealing
5 projects
Enfield
6 projects
Greenwich
10 projects
Hackney
1 project
Hammersmith and Fulham
0 projects
Haringey
3 projects
Harrow
1 project
Havering
4 projects
Hillingdon
7 projects
Hounslow
3 projects
Islington
2 projects
Kensington and Chelsea
0 projects
Lambeth
0 projects
Lewisham
4 projects
Merton
0 projects
Newham
6 projects
Redbridge
0 projects
Richmond upon Thames
0 projects
Southwark
2 projects
Sutton
3 projects
Tower Hamlets
10 projects
Waltham Forest
7 projects
Wandsworth
4 projects
Westminster
1 project
Subway
Abbey Wood
0 projects
Acton Central
2 projects
Acton Town
0 projects
Aldgate
0 projects
Aldgate East
0 projects
Alperton
0 projects
Anerley
0 projects
Angel
0 projects
Archway
1 project
Arnos Grove
1 project
Arsenal
0 projects
Baker Street
0 projects
Balham
1 project
Barbican
0 projects
Barking
0 projects
Battersea Park
0 projects
Bayswater
0 projects
Becontree
0 projects
Bermondsey
0 projects
Bexleyheath
0 projects
Blackfriars
0 projects
Blackhorse Road
0 projects
Bond Street
0 projects
Borough
0 projects
Bow Road
2 projects
Brent Cross
0 projects
Brentford
1 project
Brixton
0 projects
Brockley
0 projects
Brondesbury
1 project
Brondesbury Park
0 projects
Bushey
0 projects
Caledonian Road
0 projects
Caledonian Road & Barnsbury
0 projects
Cambridge Heath
0 projects
Camden Road
1 project
Camden Town
1 project
Canada Water
0 projects
Canary Wharf
0 projects
Canning Town
2 projects
Chancery Lane
0 projects
Charlton
2 projects
Chigwell
0 projects
Chislehurst
0 projects
Chiswick Park
0 projects
Cholsey
0 projects
Clapham Common
0 projects
Clapham Junction
0 projects
Clapham North
0 projects
Clapham South
0 projects
Cockfosters
0 projects
Colindale
2 projects
Colliers Wood
0 projects
Cricklewood
0 projects
Crossharbour
0 projects
Crouch Hill
1 project
Crystal Palace
0 projects
Dagenham East
0 projects
Denmark Hill
0 projects
Dollis Hill
0 projects
Ealing Broadway
0 projects
Earlsfield
0 projects
East Acton
0 projects
East Croydon
0 projects
East Finchley
0 projects
East Ham
0 projects
East Putney
0 projects
Edgware Road
0 projects
Elephant & Castle
0 projects
Elstree & Borehamwood
0 projects
Embankment
0 projects
Farringdon
0 projects
Feltham
1 project
Finchley Central
0 projects
Finsbury Park
0 projects
Fleet
0 projects
Forest Gate
1 project
Forest Hill
0 projects
Fulham Broadway
0 projects
Gipsy Hill
0 projects
Goodge Street
0 projects
Gordon Hill
0 projects
Gospel Oak
0 projects
Great Portland Street
0 projects
Green Park
0 projects
Greenford
0 projects
Greenwich
3 projects
Hackbridge
1 project
Hackney Central
0 projects
Hackney Downs
1 project
Hackney Wick
4 projects
Hadley Wood
0 projects
Haggerston
0 projects
Hainault
0 projects
Hammersmith
0 projects
Hampstead Heath
0 projects
Hanger Lane
2 projects
Hanwell
0 projects
Harlesden
0 projects
Harlow
0 projects
Harringay Green Lanes
0 projects
Harrow & Wealdstone
0 projects
Harrow-on-the-Hill
0 projects
Haydons Road
0 projects
Hendon
0 projects
High Barnet
0 projects
Highams Park
1 project
Highgate
0 projects
Holborn
0 projects
Holland Park
0 projects
Holloway Road
0 projects
Hornsey
0 projects
Hounslow East
0 projects
Hounslow West
0 projects
Hoxton
0 projects
Hyde Park Corner
0 projects
Imperial Wharf
0 projects
Isleworth
0 projects
Kelvedon
0 projects
Kennington
0 projects
Kensal Green
0 projects
Kensington
0 projects
Kenton
0 projects
Kew Bridge
0 projects
Kidbrooke
1 project
Kilburn High Road
0 projects
Kilburn Park
0 projects
King's Cross
0 projects
Kingston
0 projects
Knightsbridge
0 projects
Ladbroke Grove
0 projects
Lambeth North
0 projects
Leatherhead
0 projects
Lewisham
1 project
Leyton
1 project
Liverpool Street
0 projects
London Bridge
0 projects
London Fields
0 projects
Loughborough Junction
0 projects
Loughton
0 projects
Lower Sydenham
0 projects
Maida Vale
0 projects
Manor House
0 projects
Marble Arch
0 projects
Maze Hill
1 project
Mile End
0 projects
Mill Hill East
0 projects
Mornington Crescent
0 projects
Neasden
0 projects
New Cross
1 project
New Eltham
0 projects
New Malden
0 projects
Nine Elms
0 projects
North Acton
0 projects
North Greenwich
0 projects
Northolt
0 projects
Norwood Junction
0 projects
Notting Hill Gate
0 projects
Old Street
0 projects
Oval
0 projects
Oxford Circus
0 projects
Oxted
1 project
Paddington
0 projects
Park Royal
1 project
Pimlico
0 projects
Plumstead
0 projects
Ponders End
0 projects
Queen's Park
0 projects
Queensbury
0 projects
Queensway
0 projects
Raynes Park
0 projects
Reading
0 projects
Rectory Road
0 projects
Regent's Park
0 projects
Sanderstead
0 projects
Selhurst
0 projects
Shadwell
0 projects
Shoreditch High Street
0 projects
Sloane Square
0 projects
South Acton
0 projects
South Bermondsey
0 projects
South Croydon
0 projects
South Harrow
0 projects
South Kensington
0 projects
South Wimbledon
0 projects
Southall
1 project
Southgate
0 projects
Southwark
0 projects
St Johns
2 projects
St. James's Park
0 projects
Staines
0 projects
Stamford Brook
0 projects
Stamford Hill
0 projects
Stepney Green
0 projects
Stockwell
0 projects
Stonebridge Park
0 projects
Stratford
0 projects
Stratford International
0 projects
Surbiton
0 projects
Surrey Quays
0 projects
Sydenham
1 project
Tattenham Corner
0 projects
Tooting Bec
1 project
Totteridge & Whetstone
0 projects
Tower Hill
0 projects
Turnham Green
0 projects
Turnpike Lane
1 project
Twickenham
0 projects
Upper Holloway
2 projects
Upton Park
0 projects
Uxbridge
2 projects
Vauxhall
0 projects
Victoria
0 projects
Waddon
0 projects
Wandsworth Town
0 projects
Wanstead Park
0 projects
Waterloo
0 projects
Wembley Central
0 projects
Wembley Park
1 project
West Brompton
0 projects
West Croydon
0 projects
West Drayton
0 projects
West Ealing
0 projects
West Finchley
0 projects
West Kensington
0 projects
West Norwood
0 projects
Westferry
0 projects
Westminster
0 projects
White Hart Lane
0 projects
Whitechapel
0 projects
Whyteleafe South
0 projects
Willesden Junction
0 projects
Wimbledon
0 projects
Wimbledon Park
0 projects
Wood Lane
0 projects
Wood Street
3 projects
Woodford
0 projects
Postcode
BR7
0 projects
CM18
0 projects
CR0
1 project
CR2
0 projects
CR6
0 projects
CR9
3 projects
DA11
0 projects
E1
1 project
E10
1 project
E11
0 projects
E13
0 projects
E14
2 projects
E15
0 projects
E16
6 projects
E17
5 projects
E1W
0 projects
E2
0 projects
E20
0 projects
E3
5 projects
E4
1 project
E5
0 projects
E6
2 projects
E7
1 project
E8
1 project
E9
0 projects
EC1
0 projects
EC2A
0 projects
EC2M
0 projects
EC2N
0 projects
EC2R
0 projects
EC2V
0 projects
EC2Y
0 projects
EN2
1 project
EN3
0 projects
EN4
1 project
EN5
0 projects
HA0
0 projects
HA1
0 projects
HA9
1 project
IG10
1 project
IG11
2 projects
IG7
0 projects
KT1
0 projects
KT12
2 projects
KT20
1 project
N1
0 projects
N10
0 projects
N11
1 project
N12
0 projects
N13
1 project
N14
1 project
N16
0 projects
N17
1 project
N19
2 projects
N1C
0 projects
N2
0 projects
N20
1 project
N21
1 project
N22
0 projects
N3
0 projects
N4
0 projects
N6
0 projects
N7
0 projects
N8
2 projects
NW1
1 project
NW10
1 project
NW2
0 projects
NW3
0 projects
NW5
0 projects
NW6
1 project
NW7
2 projects
NW8
0 projects
NW9
3 projects
RH1
2 projects
RH8
1 project
RM13
3 projects
RM7
0 projects
SE1
1 project
SE10
3 projects
SE11
0 projects
SE13
2 projects
SE14
1 project
SE15
2 projects
SE16
0 projects
SE17
0 projects
SE18
4 projects
SE19
0 projects
SE2
0 projects
SE20
1 project
SE23
0 projects
SE24
0 projects
SE25
0 projects
SE26
0 projects
SE27
0 projects
SE28
0 projects
SE3
1 project
SE4
0 projects
SE5
0 projects
SE6
0 projects
SE7
2 projects
SE8
1 project
SE9
0 projects
SM6
1 project
SW1
0 projects
SW10
0 projects
SW11
0 projects
SW12
1 project
SW15
0 projects
SW17
3 projects
SW18
1 project
SW19
0 projects
SW1H
0 projects
SW1P
0 projects
SW1W
0 projects
SW2
0 projects
SW20
0 projects
SW3
0 projects
SW4
0 projects
SW6
0 projects
SW7
0 projects
SW8
0 projects
SW9
0 projects
TW1
0 projects
TW14
1 project
TW18
0 projects
TW3
1 project
TW7
0 projects
TW8
1 project
UB2
1 project
UB3
3 projects
UB5
0 projects
UB7
0 projects
W1
0 projects
W10
0 projects
W11
0 projects
W12
0 projects
W13
0 projects
W14
0 projects
W1H
0 projects
W1U
0 projects
W2
0 projects
W3
2 projects
W4
0 projects
W5
1 project
W6
0 projects
W7
0 projects
W8
0 projects
W9
2 projects
WC2A
0 projects
WC2B
0 projects
WC2E
0 projects
WC2H
0 projects
WC2N
0 projects
WC2R
0 projects
WD17
0 projects
WD19
1 project
WD6
0 projects
WD7
1 project
Price / ft2
Price / ft2
395 £
996 £
395 £ 996 £
Bedrooms
Bedrooms
Studios
6 projects
1BR
77 projects
2BR
75 projects
3BR
38 projects
4+ BR
2 projects
Houses
16 developments
Сompletion of construction
Сompletion of construction
Finished
53 projects
Delivery in 2022
31 projects
Delivery in 2024+
26 projects
Help to Buy
Buying Schemes
Help to Buy
98 projects
Shared Ownership
104 projects
Retirement Homes
23 projects
98 developments

Help to Buy in London

Help to Buy is the name of a government scheme in the United Kingdom that aims to help first time buyers purchase residential property. When purchasing a new apartment or house in London, the buyer can apply for a loan of up to 40% of the value of the property. After that, the buyer must post a security deposit of 5% and obtain a mortgage, which will cover the remaining 55% of the price of the housing. Note that some changes were made to the government Help to Buy program in 2021. Previously, it was available to everyone but now only first-time buyers can apply for this government scheme. 

How does London Help to Buy works?

Help to Buy London developments, which you can purchase under this program, provides exclusively new-build properties. Using the scheme, the buyer receives a loan in the form of equity participation, which is interest-free for the first 5 years. At the end of this period, he pays interest at 1.75% starting in the 6th year. The interest rate increases annually. The buyer has 25 years to fully repay the loan if he does not sell the property before then. In the event of a sale, the purchaser must repay the loan. Thus, in order not to pay high interest on the loan, it is better to try to pay the entire amount in the first 5 years.

It is essential to remember that it is the value of the home that affects the loan amount. So, what happens if property costs rise or fall? As your Help to Buy equity loan depends on the market value of your home, any change in real estate prices can affect the amount you have to repay. That is, if the value of real estate rises by 10%, then the interest rate that you need to pay rises in accordance with the already new value. It must be considered when deciding if you are going to purchase one of the Help to Buy London properties.

Example of Help to Buy in London
Cost of the home is £250,000
Cost namePercentage of total£ value
Your deposit5%£12,500
Equity loan40%£100,000
Mortgage55%£137,500
TOTAL £250,000 

What are the eligibility criteria for London Help to Buy?

To participate in the London Help to Buy program, you have to comply with the established rules.

Requirements:

  • Be at least 18 years old.
  • Be a first-time buyer, meaning that you have never owned other real estate or homes, either in the UK or abroad.
  • Require at least a 5% deposit of the total purchase price of the house.
  • The value of the real estate you are buying can not be more than the regional price cap for your area (see the full list of price caps below).
  • You must be able to prove you can afford the mortgage repayments and other outgoings on the property you want to buy.

Not allowed:

  • Owning a home or land anywhere in the world at any time.
  • To have had any form of sharia mortgage finance.
  • Owning a home bought with other people or inherited.
  • Being married or in a cohabiting relationship, either now or on legal completion with anyone who owns or has owned a home or land anywhere in the world.
  • Purchasing a second home.

Remember:

  • Part Exchange is not available through the Help to Buy scheme.
  • You cannot sublet your Help to Buy home.

Help to Buy Regional Price Caps

RegionHelp to Buy price cap
London£600,000
North East£186,100
North West£224,400
Yorkshire and the Humber£228,100
East Midlands£261,900
West Midlands£255,600
East of England£407,400
South East£437,600
South West£349,000

London Help to Buy Repayments

  • The period without interest for Help to Buy mortgages lasts for the first 5 years, so it is best if possible to repay the loan at the end of this period. If this has not happened every year in April, the interest on your equity loan will increase by the Consumer Price Index (CPI), plus 2%.
  • Thus, in the sixth year, the percentage will be 1.75%. In the seventh year, you will pay 1.75% + CPI + 2% (but if you took out a stock loan before December 2019, it will be + 1%). And according to a similar scheme, the interest rate of the Help to Buy mortgage will increase every year. That being said, you will pay a £1 monthly fee for management by direct debit, as when you take out a stock loan, you agree to pay back the full, interest and management fees.
  • Stamp Duty tax is a property transaction tax. The tax is due to be paid on any property which is purchased at a price of more than £125,000. However, in the Help to Buy scheme only first-time buyers do not need to pay Stamp Duty for properties up to £300,000.

London Help to Buy pros and cons

If the buyer does not have the total amount of money to purchase the new home, then the opportunity to buy one of the Help to Buy houses in London through a government program seems tempting. But before deciding on this step, you need to know everything about the advantages and disadvantages of the program.

ProsCons
+ Full ownership. The buyer owns 100% of the purchased home.- New buildings only. Help to Buy houses do not cover resale properties.
+ Small deposit. The buyer needs to pay a deposit of only 5% of the total value of the house.- Regional prices. In each region, prices are set, which should not exceed the purchased house.
+ 5-year interest-free period. The buyer can manage to pay the cost of the house during the first 5 years and not pay interest on top at all.- Not a fixed amount. If the property price rises, the buyer pays interest on the new value.
+ Family income does not matter. The purchase of Help to Buy real estate does not provide for maximum family income restrictions.- Growing interest. At the end of the interest-free time, the interest rate increases annually.
+ 25 years to pay off the loan. You have a long enough period of time before you have to repay the loan in full.- Remortgage is a question. Many remortgage deals are only accessible to those who have paid off their loan.
+ Low mortgage rates.- Repair permit. Before you can start improving your apartment or house, you need to get a permit.

London Help to Buy. How to apply? 

If you decide to become a member of the Help to Buy program, here is a small guide on how to do it:

  1. Book the desired apartment in the new building. Please note that the developer must be registered under the scheme.
  2. Contact the Help to Buy agent in your area and apply online.
  3. Wait until the Help to Buy agent assesses your eligibility. Then he will issue an Authority to Proceed.
  4. Authority to Proceed allows you to apply for a mortgage and promote your application prior to exchanging contracts. Then get an Authority to Exchange issued by Agent Help to Buy.
  5. Receive a Transaction Confirmation, which allows the legal completion of the construction and the transfer of funds to the developer. The Help to Buy agent will be able to issue this document when all documents and dates are agreed and the house is built.
  6. After completing the legal process, the Help to Buy agent transfers your details to the capital loan administrator to manage the loan account until it is paid in total.

Popular locations for Help to Buy

FAQ

  • What is the interest charge on a Help to Buy: Equity Loan?

The first five-year period of the Help to Buy: Equity Loan is interest-free. After these five years, you will be charged 1.75% on the outstanding amount as interest. The fee will increase annually by CPI plus 2%. You must only repay the interest, not the equity loan.  

  • Can I put more than a 5% deposit down with Help to Buy?

To take advantage of the Help to Buy scheme, you will need a minimum 5% deposit. But you can make a large amount of the deposit, which will reduce the size of the loan provided by the government. For example, with a deposit of 10%, the equity loan will be 10%, and the mortgage will be 80% to cover the rest of the property value. 

  • What happens after 5 years of Help to Buy? 

At the end of the interest-free period, the buyer begins to pay interest on the loan. But this does not mean that you repay the loan itself. Beginning in the sixth year, the buyer is charged interest of 1.75%, which increases each year in April based on the inflation rate at the time (according to the Consumer Prices Index), plus 2%.

  • Can I use Help to Buy if I have previously owned a property?

No, as the Help to Buy program is only accessible for first-time buyers. To be considered a first-time buyer, you need to have never owned a property.   

  • Who qualifies as a first time buyer?

A first-time buyer is a person that does not own, or has never owned, a house or residential land now or in the past in the UK or abroad. 

  • Can I use Help to Buy for any house?

The Help to Buy program is used only for new-build properties and can't be used to buy a second home or a buy-to-let property. 

  • How can I find available Help to Buy properties in London?

Remember that the Help to Buy properties only covers new build properties in London. Korter provides a special filter of Buying Schemes -> Help to Buy, where you can see all the properties that support the Help to Buy scheme in London.

  • How much deposit do I need?

You will need a minimum deposit of 5% as the government provides a 20% equity loan and a mortgage part accounts to 75%.

  • When do I pay back the equity loan?

The Help to Buy equity loan must be paid when the house is sold or at the end of the mortgage period. It depends on what happens first. In addition, it is allowed to pay part of the amount without selling the house. The buyer can pay 10%, 20% or the full amount if the loan is at least 10% of the value of his home.

  • Can I own a Help to Buy home and buy a second home?

No. If you can afford to buy another home you will have to repay the Help to Buy Equity Loan.