From today, first time buyers will be able to take advantage of the London Help to Buy scheme, which will enable Londoners to buy a home with just a five per cent deposit and a mortgage as low as 55%.
Communities Secretary Greg Clark made the announcement today that will give first time buyers and second steppers the chance to purchase a home in London with a deposit backed by a 40% equity loan from the government, which will be interest free for the first five years.
The Chancellor George Osborne said the government was “determined” to help people get on the property ladder. He said: “Our Help to Buy scheme has already helped tens of thousands get a step onto the housing ladder, and the Help to Buy Isa means many more will get a top up from the government as they save for a deposit.
“Today’s new scheme means an even better deal in the capital, where buying a home remains out of reach for too many.
“And to ensure there are more homes to buy for people across the country, in my Spending Review I set out plans to deliver the biggest affordable housebuilding programme since the 1970s.”
Commenting on the scheme, Communities Secretary Greg Clark said: “Our multi-billion pound investment will open the door to thousands of Londoners wanting to own their own home, following in the footsteps of nearly 270,000 people who have already bought through government-backed schemes.
“And now with the improved Help to Buy scheme launching in London, I would urge anyone who thinks home ownership is out of reach to look again at the help on offer.”
London’s own Help to Buy scheme is an extension of the Help to Buy scheme that has been used by 130,000 people across the country since 2013.
Under the current scheme, loans of up to 20% of the property’s price are made available to first-time buyers and home movers on new build homes worth up to £600,000. In London the loans will now be doubled to up to 40%.
Housing Minister Brandon Lewis said: “Anyone thinking about home ownership and those who believe it is out of reach should look again at the range of government schemes available to them.”