Help to Buy in London
Across All Schemes

Buying a home, whether you’re a first time buyer in London or moving to a new property in London, can often be challenging and overwhelming.

The financial commitment involved can give rise to various obstacles and uncertainties along the way.

Factors such as high property prices, limited income, the need for a substantial deposit, and meeting specific criteria can make the home-buying process daunting.

Thankfully, there are mortgage schemes available that aim to make homeownership more accessible and alleviate these challenges.

These schemes cater to different needs, including assistance for lower-income individuals, support from housing associations and local councils, and various other options that can help you realise your homeownership goals.

It’s important to note that not every scheme will be suitable for every situation.

Some schemes are specifically designed to help first time buyers in London with their purchase of a first home. Others cater to individuals who are already homeowners but are looking to move within London.

Each scheme has its own set of criteria and eligibility requirements, which you should carefully review before applying for a mortgage.

It may be helpful to consult with a local Help to Buy agent or look to gain expert mortgage advice in London from a trusted mortgage advisor, who can provide valuable insights and help you in navigating the available options.

The Shared Ownership Scheme has been around since the 1980s and has been instrumental in helping first time buyers and home movers in London to achieve their property ownership goals.

Often known as “part buy, part rent,” Shared Ownership in London enables you to purchase a share, typically ranging from 25% to 75%, of the property.

The remaining portion is paid as a rental charge. This arrangement offers flexibility and stability, making home ownership more affordable.

Additionally, there is the potential to “staircase” in the future, allowing you to purchase additional shares in the property and eventually attain full ownership.

It’s important to note that Shared Ownership is available only for specific purpose-built properties in London.

These properties are specifically designated for this scheme, providing eligible buyers with the opportunity to step onto the property ladder.

A significant portion of the population in London opts to rent a home before purchasing their own, as it initially offers a more affordable option.

That said, saving for a deposit while managing rental costs and additional bills can be challenging.

In such circumstances, you may find yourself wishing to buy the home you currently rent. The good news is that you might be eligible to do so!

If you are a tenant of a local council or housing association in London, you may have the opportunity to participate in the Right to Buy or Right to Acquire schemes.

To qualify, you must have been a public sector tenant for a minimum of three years.

Qualified applicants also enjoy a discounted purchase price, which varies depending on the duration of your tenancy. Fortunately, many mortgage lenders consider this discount as a sufficient deposit.

In some cases, it is still advisable to save for a deposit, as some lenders may require one, and it could help you secure better interest rates.

For first time buyers seeking help through a Right to Buy in London, it is recommended to contact your local authority, who is the owner of the property, and determine your eligibility for the scheme.

It’s important to note that neither a mortgage lender nor a mortgage broker in London can legally discriminate against anyone with a disability when it comes to applying for a mortgage.

They cannot refuse to assist based on your disability. That said, financial considerations are still taken into account when applying for a mortgage.

The good news is that some mortgage lenders are willing to consider applicants who are on disability benefits, although the process may be more extensive.

If you have a long-term disability, the likelihood of finding lenders who are open to your application is higher. This is because consistent benefits over a significant period demonstrate stability.

Applicants with shorter-term disabilities may face more challenges as there may be uncertainty regarding the duration of their benefits.

Fortunately, if you are disabled and applying for a mortgage in London, there are schemes available to help you, including a variation of the Shared Ownership Scheme that applies to purpose-built properties.

It’s important to note that there are still eligibility requirements for these schemes.

Disabled applicants can find reassurance in the fact that there may be various mortgage options available to them, regardless of their personal circumstances.

Another thing you may have heard of is a Lifetime ISA, sometimes shortened to LISA.

An ISA is an individual savings account designed to help people save for long-term goals, such as purchasing their first home in London.

The significant benefit of a Lifetime ISA is that the government provides a 25% top-up to your contributions, up to a certain amount per year, with a maximum limit on your contributions as well.

For example, if you contribute £2,000 in a year, the government will add an additional £500 to your savings account!

There are specific eligibility criteria, such as being between the ages of 18 and 39 to set up a LISA, and it can only be used for a home purchase or retirement (with restrictions on withdrawal until a certain age).

All in all, a Lifetime ISA can be a fantastic way for individuals to gradually build up funds for their future home ownership in London.

Yes, it is still possible for home buyers in London to put down a 5% deposit on a property and be accepted by a mortgage lender, provided they are creditworthy and meet the lender’s criteria.

There have been periods when mortgage lenders were cautious about offering high loan-to-value ratios.

This led to the introduction of mortgage schemes that incentivised lenders to offer 95% mortgages with a safety net.

While there are still niche cases where these schemes are necessary, nowadays most mortgage lenders are willing to accept applicants with a 5% deposit.

Generally though, it is more advantageous for both the lender and the applicant if the deposit is slightly higher.

Furthermore, if you have a poor credit history or lower income, you may be required to provide a higher deposit of around 15-20% before being approved for a mortgage.

Saving for a deposit, especially anything above 5%, can be challenging for prospective home buyers. That’s why schemes encouraging 95% mortgages were introduced, aiming to support the minimum deposit requirement.

Your mortgage advisor in London will assess your financial situation and find a suitable lender that can assist you in buying a property with a smaller deposit.

Obtaining a mortgage can be challenging for some home buyers, particularly those with a low income.

Mortgage lenders typically evaluate an applicant’s income and financial stability to assess their ability to repay the loan.

A low income may result in a limited borrowing capacity, making it harder for the applicant to meet the affordability criteria set by mortgage lenders.

Additionally, a lower income can make it more difficult to save for a sufficient deposit, which is required by mortgage lenders.

There are various government schemes available that aim to support low-income home buyers in accessing affordable housing options.

Some of these schemes specifically target individuals with lower income levels, offering the opportunity to purchase a property at a reduced or discounted cost.

This makes homeownership more feasible and cost-effective for those with limited income.

Each scheme has its own eligibility criteria, and not all may be applicable to every situation.

It can be helpful to consult with a mortgage advisor in London who specialises in helping buyers navigate these schemes and find suitable options for their circumstances.

Forces Help to Buy is a government scheme designed to help members of the armed forces in purchasing a home.

This scheme offers eligible personnel an interest-free loan, enabling them to borrow up to 50% of their salary, with a maximum limit of £25,000.

The loan can be utilised for various purposes related to buying a property, including the deposit and other associated costs.

The primary objective of the scheme is to address the specific challenges faced by military personnel, who often encounter difficulties in accessing traditional mortgage products due to frequent relocations.

Forces Help to Buy provides servicemen and women with a valuable opportunity to step onto the property ladder and establish a stable home for themselves and their families.

By offering financial support and favorable loan terms, the scheme makes homeownership more accessible and affordable for those serving in the armed forces.