The Help to Buy London scheme goes live on Monday. So what is it, and how does it differ from the Help to Buy schemes which already exist?
House prices are high, too high, in many cases, for people looking to buy their first home. The major problem is most often cited as being the deposit that needs to be put down in order to get a decent mortgage rate.
In order to combat this, schemes like the Help to Buy Equity Loan and the Mortgage Guarantee served to circumvent the issues of young people having to save up huge amounts for a deposit.
Unfortunately, even having access to a government loan worth 20 per cent of the property value to use as deposit (as the HtB Equity Loan does) is often not enough in the capital city. The London Help to Buy scheme had been introduced to try and help people get onto the property ladder in the city by boosting this loan up to 40 per cent of the property value for use as a deposit.
Of course, the drawback here is that it will be a lot more for the buyer to pay back to the government.
Leeds Building Society has revealed ahead of the release date, the details of their Help to Buy London deal. They will offer a 1.79 per cent two year fixed rate mortgage (with a £799 fee), or a 2.45 per cent five year fixed rate mortgage (with a £199 fee). Both of these deals come with a free valuation, although anyone looking to buy should consider paying for an independent valuation.
