Help to Buy London

Help to Buy London was the London version of the Help to Buy equity loan in England, which let new-build buyers borrow up to 40% of the price from the government, compared with up to 20% elsewhere. The buyer paid a deposit of 5% and took a mortgage for the rest (GOV.UK, accessed 20 Oct 2026).

The higher limit reflected London prices, and it meant buyers needed a smaller mortgage relative to the price. Like the rest of the England scheme, it is closed to new applications, so only existing owners now deal with London equity loans.

The equity loan percentage, not the cash sum, is what matters later. An owner who borrowed 40% repays 40% of the home's value at the time (GOV.UK, accessed 20 Oct 2026), which can be more or less than the original loan.

A London Help to Buy equity loan is repaid on the same rules as the rest of England, as a share of the current market value set by an independent RICS valuation. Interest starts in the sixth year on the original loan amount and rises each April (GOV.UK, accessed 20 Oct 2026).

Because the share is larger, changes in value have a bigger effect on the sum owed. A rise in value lifts the repayment sharply, while a fall reduces it, so owners in London often track local prices before deciding when to repay.

Part repayments must be at least 10% of the market value (GOV.UK, accessed 20 Oct 2026), and each needs its own valuation and administration fee. How the valuation must be done is explained on the Help to Buy valuation page.

Remortgaging a London Help to Buy home works in the same way as elsewhere, but the larger equity loan makes the loan-to-value on the main mortgage more important. Repaying a large share in one go needs a much larger mortgage, which some owners cannot fund on their income alone.

Many London owners part repay in stages instead, or remortgage while keeping the equity loan in place with a lender that accepts it. Flats bring extra checks, such as the lease length, service charges and any cladding issues, which can affect both the lender and the valuation.

The options, costs and consent needed are set out on the Help to Buy remortgage page. A broker can compare lenders that accept a large remaining equity loan.

With the Help to Buy equity loan closed, buyers in London mainly look at shared ownership, First Homes where available, and the mortgage guarantee scheme for small deposits. Shared ownership lets buyers purchase a share of a home and pay rent on the rest, with the option to buy more shares (GOV.UK, accessed 20 Oct 2026).

Each scheme has its own eligibility rules, price limits and resale terms, and lenders treat them differently. The Mayor of London also runs programmes for intermediate housing, including London Living Rent, aimed at people saving for a deposit.

Comparing schemes on the total cost over time, including rent, service charges and how future shares are priced, gives a fairer view than the deposit needed at the start.