If you live within a London borough, the Government lends you up to 40%* of the cost of your new build home, so that you’ll only need a cash deposit from 5% and a 55% mortgage to make up the rest.
The equity loan is interest free for the first five years, however, a £1 per month management fee is charged from the date of purchase. After that, you will pay a fee of 1.75%, rising annually by the increase (if any) of the Retail Price Index (RPI) + 1%.
The equity loan can be repaid at any time within 25 years (or the term of the mortgage), or on the sale of the property.
Am I eligible?
- The scheme is open to both first time buyers and existing home owners.
- There is no maximum household income.
- You can purchase a property with a maximum value of £600,000.
- You will need a minimum 5% deposit to qualify.
To apply you will need to find a property through a participating registered builder and complete their relevant paperwork.
For more information and to talk to one of our advisers, please complete the below form.
*Inside of London. For new builds outside of London see our separate help to buy advice.