SPENDING REVIEW 2015: A new London Help to Buy scheme has been announced by chancellor George Osborne.
The scheme will offer eligible buyers a 40% interest-free loan against the value of a newly-built home if they can secure a 5% deposit.
Purchasers will need a mortgage of up to 55% to cover the rest of acquisition.
Under the existing Help to Buy scheme, eligible buyers with a 5% deposit can secure a 20% loan from government against the value of their property; alongside the purchaser’s mortgage of up to 75%.
The existing scheme is only viable for home of up to £600,000 and will be available across England until 2021.
The increase in the upper limit for London loans will be introduced in early 2016 to reflect the capital’s higher house prices.
Chancellor George Osborne said the scheme would “help address the housing crisis in our capital city”.
The chancellor said the policy was supported by London mayoral candidate Zac Goldsmith.
