The London Help to Buy scheme is now open, allowing Londoners to buy a home with just a 5% deposit and a mortgage as low as 55%.
First-time buyers and second-steppers will get the opportunity to own a new-build home in the capital with a deposit backed by a 40% equity loan from the government which is interest free for the first five years.
Chancellor George Osborne said the government is determined to create more homeowners and the Help to Buy scheme has already helped thousands all over the country.
“Today’s new scheme means an even better deal in the capital, where buying a home remains out of reach for too many,” said the Chancellor.
“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.”
Communities Secretary Greg Clark said the government’s multi-billion pound investment would open the door for thousands of Londoners.
“Following in the footsteps of nearly 270,000 people who have already bought through government-backed schemes,” said Greg Clark.
“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.”
Meanwhile, Housing Minister Brandon Lewis said the scheme was helping people turn housing dreams into reality.
“With a fraction of a deposit they would normally require, and from today the new London scheme will help even more people follow in their footsteps,” said Brandon Lewis.
“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.”
Aldermore, Bank of Scotland, Barclays, Halifax, Leeds, Lloyds, Nationwide, NatWest, Royal Bank of Scotland and Teachers Building Society are all offering London Help to Buy.
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