The scheme works in the same way as the Help to Buy: equity loan scheme, but offers a 40% equity loan for borrowers buying a property within Greater London, instead of the 20% available throughout the rest of the UK.
First-time buyers or homemovers can take a loan out on a new-build property worth a maximum of £600,000 under the scheme. The property must be the client’s only home and they will not be able to let or part exchange their existing home if they are moving.
For example, a property with a £400,000 purchase price will see the buyer put down a 5% deposit of £20,000. The government will provide a 40% equity loan equivalent to £40,000 with Santander providing 55% of the mortgage, at £220,000 in this instance.
For a full list of the 32 London boroughs covered by the scheme visit the London Help to Buy Scheme website.