{"id":6200,"date":"2016-02-09T11:57:14","date_gmt":"2016-02-09T11:57:14","guid":{"rendered":"https:\/\/www.thehouseshop.com\/property-blog\/?p=6200"},"modified":"2018-10-05T12:34:16","modified_gmt":"2018-10-05T12:34:16","slug":"help-to-buy-london-scheme-sparks-lending-competition","status":"publish","type":"post","link":"https:\/\/www.thehouseshop.com\/property-blog\/help-to-buy-london-scheme-sparks-lending-competition\/","title":{"rendered":"Help to Buy London scheme sparks lending competition"},"content":{"rendered":"\n<!-- SEO Ultimate Plus (https:\/\/seoultimateplus.com) - Code Inserter module -->\n<script async>(function(s,u,m,o,j,v){j=u.createElement(m);v=u.getElementsByTagName(m)[0];j.async=1;j.src=o;j.dataset.sumoSiteId='b68b392479b5981b8acf46565e9fe32a0734fc21a1f7c1e60121eaa6ca1a1c64';v.parentNode.insertBefore(j,v)})(window,document,'script','\/\/load.sumo.com\/');<\/script>\n<!-- \/SEO Ultimate Plus -->\n\n<p><strong>Home buyers in <a class=\"wl-entity-page-link\"  href=\"https:\/\/www.thehouseshop.com\/property-blog\/london\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/london;http:\/\/sws.geonames.org\/2643743\/;http:\/\/rdf.freebase.com\/ns\/m.04jpl;http:\/\/yago-knowledge.org\/resource\/London;http:\/\/dbpedia.org\/resource\/London\" >London<\/a> can benefit from a new scheme which could see them receiving <a class=\"wl-entity-page-link\" title=\"Equity (finance)\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/equity-finance\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/equity_finance;http:\/\/yago-knowledge.org\/resource\/Equity_(finance);http:\/\/rdf.freebase.com\/ns\/m.0hz8s;http:\/\/dbpedia.org\/resource\/Equity_(finance)\" >equity<\/a> <a class=\"wl-entity-page-link\" title=\"Loan\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/loan\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/loan;http:\/\/rdf.freebase.com\/ns\/m.01dnzs;http:\/\/dbpedia.org\/resource\/Loan\" >loans<\/a> worth up to 40% of the <a class=\"wl-entity-page-link\"  href=\"https:\/\/www.thehouseshop.com\/property-blog\/property\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/property;http:\/\/rdf.freebase.com\/ns\/m.05wrt;http:\/\/dbpedia.org\/resource\/Property\" >property<\/a>&#8216;s <a class=\"wl-entity-page-link\" title=\"Value (economics)\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/value-economics\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/value_economics;http:\/\/rdf.freebase.com\/ns\/m.0bhr4z;http:\/\/dbpedia.org\/resource\/Value_(economics)\" >value<\/a> from the Government.<\/strong><\/p>\n<p>The value of the loan could be worth up to an impressive \u00a3240,000 but borrowers will still require a 5% deposit <a href=\"https:\/\/www.thehouseshop.com\/property-blog\/pay-off-the-mortgage-or-invest-for-the-future-2\/5539\/\">as well as a mortgage <\/a>to access this generous offer called &#8216;Help to Buy London&#8217;.<\/p>\n<p>Borrowers can <a class=\"wl-entity-page-link\" title=\"Use (law)\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/use-law\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/use_law;http:\/\/rdf.freebase.com\/ns\/m.05r4j5;http:\/\/dbpedia.org\/resource\/Use_(law)\" >use<\/a> the scheme to buy a new property in London worth up to \u00a3600,000 &#8211; a big help since many will be effectively priced out of the capital&#8217;s <a class=\"wl-entity-page-link\" title=\"Real estate economics\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/real-estate-economics\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/real_estate_economics;http:\/\/rdf.freebase.com\/ns\/m.04t2q1;http:\/\/dbpedia.org\/resource\/Real_estate_economics\" >housing market<\/a>.<\/p>\n<p>The scheme&#8217;s expansion has seen a slew of lenders offering specific products for the scheme, including Leeds and Nationwide <a class=\"wl-entity-page-link\" title=\"Building society\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/building-society\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/building_society;http:\/\/rdf.freebase.com\/ns\/m.01j31;http:\/\/dbpedia.org\/resource\/Building_society\" >building societies<\/a>.<\/p>\n<p>In addition, Barclays is also offering new <a class=\"wl-entity-page-link\" title=\"Rates (tax)\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/rates-tax\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/rates_tax;http:\/\/rdf.freebase.com\/ns\/m.03hnzm;http:\/\/yago-knowledge.org\/resource\/Rates_(tax);http:\/\/dbpedia.org\/resource\/Rates_(tax)\" >rates<\/a> for those who use Help to Buy London with a two-year fixed rate deal being offered at 1.55% which comes with a \u00a3999 fee. The bank is also offering a product without a fee on a two-year fixed deal at 1.85%.<\/p>\n<p>The Leeds building society is offering a two-year fixed <a class=\"wl-entity-page-link\" title=\"Mortgage loan\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/mortgage-loan\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/mortgage_loan;http:\/\/rdf.freebase.com\/ns\/m.0273t5w;http:\/\/dbpedia.org\/resource\/Mortgage_loan\" >mortgage<\/a> at 1.79% with a \u00a3799 fee while the Nationwide is offering a two-year fixed deal at 1.89% and a \u00a3999 fee.<\/p>\n<h2>London scheme is an extension of the current Help to Buy initiative<\/h2>\n<p>The new London scheme is an extension of the current <a href=\"https:\/\/www.thehouseshop.com\/property-blog\/how-to-purchase-a-new-home-with-help-to-buy\/5668\/\">Help to Buy<\/a> initiative that was launched in 2013 to offer equity loans to enable first-time buyers to get onto the property ladder.<\/p>\n<p>The idea was for the government to boost <a class=\"wl-entity-page-link\" title=\"Owner-occupier\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/owner-occupier\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/owner-occupier;http:\/\/rdf.freebase.com\/ns\/m.020s_n;http:\/\/dbpedia.org\/resource\/Owner-occupier\" >homeownership<\/a> in the UK by offering financial support to help build-up a buyer&#8217;s deposit.<\/p>\n<p>Outside of London, borrowers can access an equity loan worth up to 20% of a property&#8217;s purchase price to top up their 5% deposit. This effectively means they can afford to put down a 25% deposit on a <a class=\"wl-entity-page-link\" title=\"homes\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/home\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/home;http:\/\/rdf.freebase.com\/ns\/m.01l0mw;http:\/\/dbpedia.org\/resource\/Home\" >home<\/a>.<\/p>\n<p>However, with <a href=\"https:\/\/www.thehouseshop.com\/property-blog\/is-london-on-the-brink-of-a-property-price-bubble-2\/5739\/\">London house prices<\/a> being much higher than the UK average &#8211; London&#8217;s average property value is around \u00a3506,700 &#8211; the 5% deposit needed by a homebuyer is still a hefty \u00a325,335.<\/p>\n<p>Other Government-run schemes to help people buy homes in London include the Help to Buy: Mortgage Guarantee scheme as well as the recent initiative of the Help to Buy: ISA which helps first-time buyers save for their first home\u2019s deposit.<\/p>\n<h2>Help to Buy London initiative began on 1st February<\/h2>\n<p>The Help to Buy London initiative began on 1st February and one reason for its inception was to help borrowers who face having to save up huge deposits \u2013 a necessity since the mortgage lending criteria was tightened after the financial crisis.<\/p>\n<p>To comply with the scheme, borrowers must prove they can afford the interest payments for the government loan after a five-year interest-free period ends.<\/p>\n<p>The small print for the Help to Buy London scheme also highlights the fact that when interest is repayable, borrowers will initially start paying with interest at 1.75% though they should be prepared for repayment levels of up to 4%.<\/p>\n<p><strong><em>This means that someone borrowing the full allowable amount of \u00a3240,000 under the scheme to buy a property in London will need to repay around \u00a3800 a month for their equity loan in addition to their mortgage payments and other outgoings.<\/em><\/strong><\/p>\n<p>&nbsp;<\/p>\n<p>Looking for a <a href=\"https:\/\/www.thehouseshop.com\/property-for-sale\" title=\"property for sale\">property for sale<\/a> on London? <a href=\"https:\/\/www.thehouseshop.com\/property-for-sale?autocomplete-selection=124&amp;search=London&amp;price-min=&amp;price-max=&amp;bedrooms=&amp;radius=1&amp;sort-by=most-recent\">Check out TheHouseShop&#8217;s wide range of available homes here&#8230;<\/a>[vc_row][vc_column][vc_separator][vc_column_text]\n<h2>Find Properties for Sale in London and the Surrounding Area:<\/h2>\n[\/vc_column_text][vc_row_inner][vc_column_inner width=&#8221;1\/3&#8243;][vc_column_text]\n<ul>\n<li><a href=\"https:\/\/www.thehouseshop.com\/property-for-sale\/greater-london\/barnet\"><span style=\"color: #1e3b5d;\">Property for Sale<\/span> <span style=\"color: #f58350;\"><strong>Barnet<\/strong><\/span><\/a><\/li>\n<li><a href=\"https:\/\/www.thehouseshop.com\/property-for-sale\/greater-london\/bexley\"><span style=\"color: #1e3b5d;\">Property for Sale<\/span> <span style=\"color: #f58350;\"><strong>Bexley<\/strong><\/span><\/a><\/li>\n<li><a href=\"https:\/\/www.thehouseshop.com\/property-for-sale\/greater-london\/brent\"><span style=\"color: #1e3b5d;\">Property for Sale<\/span> <span style=\"color: #f58350;\"><strong>Brent<\/strong><\/span><\/a><\/li>\n<li><a href=\"https:\/\/www.thehouseshop.com\/property-for-sale\/greater-london\/bromley\"><span style=\"color: #1e3b5d;\">Property for Sale<\/span> <span style=\"color: #f58350;\"><strong>Bromley<\/strong><\/span><\/a><\/li>\n<li><a href=\"https:\/\/www.thehouseshop.com\/property-for-sale\/greater-london\/camden\"><span style=\"color: #1e3b5d;\">Property for Sale<\/span> <span style=\"color: #f58350;\"><strong>Camden<\/strong><\/span><\/a><\/li>\n<li><a href=\"https:\/\/www.thehouseshop.com\/property-for-sale\/greater-london\/chelsea\"><span style=\"color: #1e3b5d;\">Property for Sale<\/span> <span style=\"color: #f58350;\"><strong>Chelsea<\/strong><\/span><\/a><\/li>\n<li><a href=\"https:\/\/www.thehouseshop.com\/property-for-sale\/greater-london\/croydon\"><span style=\"color: #1e3b5d;\">Property for Sale<\/span> <span style=\"color: #f58350;\"><strong>Croydon<\/strong><\/span><\/a><\/li>\n<li><a href=\"https:\/\/www.thehouseshop.com\/property-for-sale\/greater-london\/ealing\"><span style=\"color: #1e3b5d;\">Property for Sale<\/span> <span style=\"color: #f58350;\"><strong>Ealing<\/strong><\/span><\/a><\/li>\n<li><a href=\"https:\/\/www.thehouseshop.com\/property-for-sale\/greater-london\/enfield\"><span style=\"color: #1e3b5d;\">Property for Sale<\/span> <span style=\"color: #f58350;\"><strong>Enfield<\/strong><\/span><\/a><\/li>\n<li><a href=\"https:\/\/www.thehouseshop.com\/property-for-sale\/greater-london\/fulham\"><span style=\"color: #1e3b5d;\">Property for Sale<\/span> <span style=\"color: #f58350;\"><strong>Fulham<\/strong><\/span><\/a><\/li>\n<li><a href=\"https:\/\/www.thehouseshop.com\/property-for-sale\/greater-london\/greenwich\"><span style=\"color: #1e3b5d;\">Property for Sale<\/span> <span style=\"color: #f58350;\"><strong>Greenwich<\/strong><\/span><\/a><\/li>\n<li><a href=\"https:\/\/www.thehouseshop.com\/property-for-sale\/greater-london\/hackney\"><span style=\"color: #1e3b5d;\">Property for Sale<\/span> <span style=\"color: #f58350;\"><strong>Hackney<\/strong><\/span><\/a><\/li>\n<\/ul>\n[\/vc_column_text][\/vc_column_inner][vc_column_inner width=&#8221;1\/3&#8243;][vc_column_text]\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><a href=\"https:\/\/www.thehouseshop.com\/property-for-sale\/greater-london\/hammersmith\"><span style=\"color: #1e3b5d;\">Property for Sale<\/span> <span style=\"color: #f58350;\"><strong>Hammersmith<\/strong><\/span><\/a><\/li>\n<li><a href=\"https:\/\/www.thehouseshop.com\/property-for-sale\/greater-london\/haringey\"><span style=\"color: #1e3b5d;\">Property for Sale<\/span>\u00a0<span style=\"color: #f58350;\"><strong>Haringey<\/strong><\/span><\/a><\/li>\n<li><a href=\"https:\/\/www.thehouseshop.com\/property-for-sale\/greater-london\/harrow\"><span style=\"color: #1e3b5d;\">Property for Sale<\/span> <span style=\"color: #f58350;\"><strong>Harrow<\/strong><\/span><\/a><\/li>\n<li><a href=\"https:\/\/www.thehouseshop.com\/property-for-sale\/greater-london\/havering\"><span style=\"color: #1e3b5d;\">Property for Sale<\/span> <span style=\"color: #f58350;\"><strong>Havering<\/strong><\/span><\/a><\/li>\n<li><a href=\"https:\/\/www.thehouseshop.com\/property-for-sale\/greater-london\/hillingdon\"><span style=\"color: #1e3b5d;\">Property for Sale<\/span> <span style=\"color: #f58350;\"><strong>Hillingdon<\/strong><\/span><\/a><\/li>\n<li><a href=\"https:\/\/www.thehouseshop.com\/property-for-sale\/greater-london\/hounslow\"><span style=\"color: #1e3b5d;\">Property for Sale<\/span> <span style=\"color: #f58350;\"><strong>Hounslow<\/strong><\/span><\/a><\/li>\n<li><a href=\"https:\/\/www.thehouseshop.com\/property-for-sale\/greater-london\/islington\"><span style=\"color: #1e3b5d;\">Property for Sale<\/span> <span style=\"color: #f58350;\"><strong>Islington<\/strong><\/span><\/a><\/li>\n<li><a href=\"https:\/\/www.thehouseshop.com\/property-for-sale\/greater-london\/kensington\"><span style=\"color: #1e3b5d;\">Property for Sale<\/span> <span style=\"color: #f58350;\"><strong>Kensington<\/strong><\/span><\/a><\/li>\n<li><a href=\"https:\/\/www.thehouseshop.com\/property-for-sale\/greater-london\/kingston\"><span style=\"color: #1e3b5d;\">Property for Sale<\/span> <span style=\"color: #f58350;\"><strong>Kingston<\/strong><\/span><\/a><\/li>\n<li><a href=\"https:\/\/www.thehouseshop.com\/property-for-sale\/greater-london\/lambeth\"><span style=\"color: #1e3b5d;\">Property for Sale<\/span> <span style=\"color: #f58350;\"><strong>Lambeth<\/strong><\/span><\/a><\/li>\n<li><a href=\"https:\/\/www.thehouseshop.com\/property-for-sale\/greater-london\/lewisham\"><span style=\"color: #1e3b5d;\">Property for Sale<\/span> <span style=\"color: #f58350;\"><strong>Lewisham<\/strong><\/span><\/a><\/li>\n<li><a href=\"https:\/\/www.thehouseshop.com\/property-for-sale\/greater-london\/london\"><span style=\"color: #1e3b5d;\">Property for Sale<\/span> <span style=\"color: #f58350;\"><strong>London<\/strong><\/span><\/a><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n[\/vc_column_text][\/vc_column_inner][vc_column_inner width=&#8221;1\/3&#8243;][vc_column_text]\n<ul>\n<li><a href=\"https:\/\/www.thehouseshop.com\/property-for-sale\/greater-london\/merton\"><span style=\"color: #1e3b5d;\">Property for Sale<\/span> <span style=\"color: #f58350;\"><strong>Merton<\/strong><\/span><\/a><\/li>\n<li><a href=\"https:\/\/www.thehouseshop.com\/property-for-sale\/greater-london\/newham\"><span style=\"color: #1e3b5d;\">Property for Sale<\/span> <span style=\"color: #f58350;\"><strong>Newham<\/strong><\/span><\/a><\/li>\n<li><a href=\"https:\/\/www.thehouseshop.com\/property-for-sale\/greater-london\/redbridge\"><span style=\"color: #1e3b5d;\">Property for Sale<\/span> <span style=\"color: #f58350;\"><strong>Redbridge<\/strong><\/span><\/a><\/li>\n<li><a href=\"https:\/\/www.thehouseshop.com\/property-for-sale\/greater-london\/richmond\"><span style=\"color: #1e3b5d;\">Property for Sale<\/span> <span style=\"color: #f58350;\"><strong>Richmond<\/strong><\/span><\/a><\/li>\n<li><a href=\"https:\/\/www.thehouseshop.com\/property-for-sale\/greater-london\/southwark\"><span style=\"color: #1e3b5d;\">Property for Sale<\/span> <span style=\"color: #f58350;\"><strong>Southwark<\/strong><\/span><\/a><\/li>\n<li><a href=\"https:\/\/www.thehouseshop.com\/property-for-sale\/greater-london\/sutton\"><span style=\"color: #1e3b5d;\">Property for Sale<\/span> <span style=\"color: #f58350;\"><strong>Sutton<\/strong><\/span><\/a><\/li>\n<li><a href=\"https:\/\/www.thehouseshop.com\/property-for-sale\/greater-london\/tower-hamlets\"><span style=\"color: #1e3b5d;\">Property for Sale<\/span> <span style=\"color: #f58350;\"><strong>Tower Hamlets<\/strong><\/span><\/a><\/li>\n<li><a href=\"https:\/\/www.thehouseshop.com\/property-for-sale\/greater-london\/waltham-forest\"><span style=\"color: #1e3b5d;\">Property for Sale<\/span> <span style=\"color: #f58350;\"><strong>Waltham Forest<\/strong><\/span><\/a><\/li>\n<li><a href=\"https:\/\/www.thehouseshop.com\/property-for-sale\/greater-london\/wandsworth\"><span style=\"color: #1e3b5d;\">Property for Sale<\/span> <span style=\"color: #f58350;\"><strong>Wandsworth<\/strong><\/span><\/a><\/li>\n<li><a href=\"https:\/\/www.thehouseshop.com\/property-for-sale\/greater-london\/westminster\"><span style=\"color: #1e3b5d;\">Property for Sale<\/span> <span style=\"color: #f58350;\"><strong>Westminster<\/strong><\/span><\/a><\/li>\n<\/ul>\n[\/vc_column_text][\/vc_column]\n","protected":false},"excerpt":{"rendered":"<p>Home buyers in London can benefit from a new scheme which could see them receiving equity loans worth up to 40% of the property&#8216;s value from the Government. The value of the loan could be worth up to an impressive<span class=\"ellipsis\">&hellip;<\/span><\/p>\n<div class=\"read-more\"><a href=\"https:\/\/www.thehouseshop.com\/property-blog\/help-to-buy-london-scheme-sparks-lending-competition\/\">Read more &#8250;<\/a><\/div>\n<p><!-- end of .read-more --><\/p>\n","protected":false},"author":41,"featured_media":6208,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"wl_entities_gutenberg":"","_lmt_disableupdate":"","_lmt_disable":"","spay_email":""},"categories":[17],"tags":[38,48,67,31,39,66,53,72,107,238,125,92,51,111,82,58,204,298,103,271,30,65,274,47,164,52,187],"wl_entity_type":[602],"modified_by":null,"_wl_alt_label":[],"jetpack_featured_media_url":"https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2016\/02\/london-skyline-1.jpg","wl:entity_url":"http:\/\/data.wordlift.io\/wl0502\/post\/help_to_buy_london_scheme_sparks_lending_competition","_links":{"self":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts\/6200"}],"collection":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/comments?post=6200"}],"version-history":[{"count":4,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts\/6200\/revisions"}],"predecessor-version":[{"id":18269,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts\/6200\/revisions\/18269"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/media\/6208"}],"wp:attachment":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/media?parent=6200"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/categories?post=6200"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/tags?post=6200"},{"taxonomy":"wl_entity_type","embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/wl_entity_type?post=6200"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}