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Help to Buy Mortgage - London

Find out all about London help to buy mortgages and see if you’re eligible.

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By Pete Mugleston   Mortgage Advisor

Last updated: 5th April 2019 *

The Help to Buy London mortgage scheme

Every day we receive enquiries from customers enquiring about the government Help to Buy (HTB) mortgage scheme, some of which concern how it varies by location.

While HTB is financed by the UK government, different schemes run in Scotland, Wales and Northern Ireland. In England, the same rules apply across every region, other than in certain parts of London. These applicants may be eligible for a larger government-funded loan.

Read on to find out how to calculate whether you’re eligible for a Help to Buy mortgage in London.

This article will be covering:

  • What is the Help to Buy scheme?
    • Help to Buy Equity Loan
    • Help to Buy eligibility
      • How much can I borrow with Help to Buy London?
  • London Help to Buy mortgages
  • Help to Buy mortgage calculator London
  • What other factors impact eligibility for a Help to Buy London mortgage?
    • Affordability
    • Bad credit
    • Age

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What is the Help to Buy mortgage scheme?

Help to Buy (HTB) is a government-funded initiative aimed at helping hardworking UK citizens a foot onto the property ladder. HTB is made up of the following schemes:

  • Help to Buy Equity Loan
  • Help to Buy Shared Ownership
  • Help to Buy Mortgage Guarantee (no longer available)

The most common is the HTB equity loan.

The Help to Buy equity loan

The equity loan element of Help to Buy gives individuals the opportunity to buy a home with as little as 5% deposit saved. The government contributes a Help to Buy equity loan on top of the deposit to open borrowers up to a wider variety of providers. Many lenders offer Help to Buy mortgages, including mainstream lenders such as Barclays and Natwest.

You do not have to pay any interest on the government loan for the first five years of owning your home. After this time you get charged fixed fee of 1.75%, which will rise each year in line with the rise of the Retail Price Index + 1%.

The London Help to Buy mortgage scheme

When this part of HTB was first introduced, the upper limit of the equity loan was 20% of a property’s value across all parts of the UK.

However, the limit has since been extended from to 40% in certain parts of London to reflect the higher cost of living in the capital. You can view which London boroughs the scheme is applicable to here.

What is the Help to Buy London mortgage scheme eligibility criteria?

The government has a few basic requirements you have to meet to be eligible for Help to Buy. You can find out what these are here.

As well as upping the maximum equity loan to 40% London, there is also a higher cap on the maximum property value. The limit in London is £450,000, rather than £250,000 for the rest of England.

How much can I borrow with Help to Buy London?

So, what is the maximum you can borrow using the HTB London equity loan?

Using the upper property value limit and minimum deposit requirement, you could potentially get up to a £180,000 government contribution. This is broken down as follows:

Property Value Deposit Required Equity Loan Mortgage required
£450,000 (Max) £22,500 (5% min) £180,000 (40%) £247,000 (55%)

Help to Buy London mortgage calculator

Many customers look towards mortgage calculators to assess their eligibility for a home loan. The government website has a London Help to Buy mortgage calculator and various other sources which you may wish to refer to.

However, mortgage calculators do not factor in each lenders’ varying criteria, nor do they consider each individual circumstance which may impact your application.

You could get your hopes up over the results of a mortgage calculator only to find you’re unable to take advantage of the Help to Buy London scheme.

This is why it’s important to speak to one of the whole of market brokers we work with. Not only will they run through the basic Help to Buy London criteria, they will scrutinise the other factors lender’s want to know before authorising a mortgage.

Contact us today and we’ll put you in touch with a Help to Buy London expert who will accurately calculate your mortgage eligibility and compare the best deals for you.

What other factors impact eligibility for a Help to Buy mortgage in London?


As with any standard mortgage application, if you use the HTB London scheme you will be subject to an affordability assessment to calculate how much money you can reasonably afford to borrow.

Providers usually have restrictions on how much they will lend, depending on your annual salary. Most providers cap at 3 - 4x your income, although some but may be happy to offer you up to 5 - 6x, depending on the circumstances.

Bad credit

Mortgage providers are more cautious lending to those who have a history of adverse due to the higher risk they pose. Those that will consider you may require a larger deposit as a precaution, charge higher rates or put a cap on how much they will lend.

However, every provider has different requirements as to what they will or won’t accept when it comes to bad credit, so don’t lose hope. The most important factor is often based on the recency and / or severity of the issue.

If you have a history of bad credit and want to know how it will affect your HTB London application, contact us or visit our bad credit section.


As with any mortgage, older borrowers can find it more difficult to find willing HTB lenders as they are seen as higher risk. Some providers won’t lend into retirement, whereas others may limit the amount you can borrow or the term length.

Contact a whole of market broker that can scour the market for Help to Buy London lenders and find the best rates, whatever your circumstances.

Why you should speak to a London Help to Buy mortgage broker

We’ve helped over 75,000 people find the right mortgage, in fact our customers consistently rate us 5 stars on Feefo, mainly because of the level of service and the fact that we offer  OMA offers a 5-star service-, with access to leading brokers who:

  • Are whole of market.
  • Already know the lenders to go to as they successfully arrange these already.
  • Are OMA Accredited advisors.
  • Have completed a 12 module LIBF accredited training course.

Talk to a Help to Buy London mortgage expert today

If you like what you’re reading or require more information surrounding Help to Buy mortgages, call Online Mortgage Advisor on 0800 304 7880 or make an enquiry here.

Then sit back and let us do all the hard work in finding the broker with the right expertise for your circumstances. We don’t charge a fee, and there’s no obligation or marks on your credit rating.

Updated: 5th April 2019
OnlineMortgageAdvisor 2019 ©

FCA disclaimer

*Based on our research, the content contained in this article is accurate as of most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The info on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs. Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

Find out more about Help To Buy

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