London Help to Buy

Terms and Conditions

1.1 This offer is only available on selected new build plots and developments in the 32 London Boroughs and the City of London only. The maximum property value for London Help to Buy is £600,000.

1.2 London Help to Buy is only available on repayment loans with interest and capital paid every month and on properties which are occupied by the individual or individuals taking out the mortgage.

1.3 Purchasers will be required to raise funding, including a mortgage of at least 25% and a deposit of no less than 5% of the property purchase price (excluding any mortgage fees). The property will be subject to a first charge in favour of the mortgage company. Purchaser deposit must be a minimum of 5% after the equity loan has been applied. Mortgage lender's criteria may affect any deposit percentage and whether it applies before or after the equity loan is deducted from the purchase price.

1.4 Homes England will provide an equity loan to eligible purchasers of not more than 40% of the purchase price subject to the terms of the equity loan agreement. Based on the maximum purchase price of £600,000, Homes England will therefore provide an equity loan of up to £240,000.

1.5 The equity loan provided by Homes England will be secured by a second charge on the property behind the first charge referred to in paragraph 1.3.

1.6 The equity loan provided by Homes England will be interest free for the first 5 years. From the beginning of year 6, interest will be payable by the purchaser at an annual gross rate of 1.75%, rising at the Retail Prices Index published by the Office for National Statistics plus 1% per year thereafter.

1.7 The equity loan must be repaid within 25 years of legal completion of the purchase of the property whether the property is sold or not.

1.8 The equity loans will be repayable on the basis of the greater of the price of the property or its market value at the time of future sale or mortgage repayment as opposed to the original purchase price but disregarding additions or improvements made to the property by the purchaser with the consent of Homes England. This means that if the property increases or decreases in value, the purchaser will pay Homes England the same percentage of the new price of the property as the percentage the equity loan was of the original price. This may result in Homes England being paid more or less than the original loan value.

1.9 If, on the sale of the property, the price of the property has fallen and there is insufficient money from the sale to repay the equity loans after the mortgage has been paid the purchaser will lose any deposit paid. Homes England will not however seek to recover the balance of their equity, not otherwise paid out of the proceeds of sale, from the purchaser.

1.10 The purchaser may repay the equity loan to Homes England at any time following legal completion. Repayment whether in full or by instalments will be based on the market value of the property at the time of the repayment(s) and the purchaser will have to arrange and pay for the valuation of the property at that time. The minimum instalment value is 10% of the total of the equity loans.

1.11 Detailed terms and conditions apply to the equity loan which will be made available to the purchaser via their legal advisors as part of the conveyancing process.

An example of how London Help to Buy works is as follows:

  • Purchase price £350,000
  • Mortgage £192,500 (55%)
  • Deposit £17,500 (5% of purchase price)
  • Equity loan £140,000 (40%) provided Homes England
  • For the first five years the equity loan is interest free. After five years an annual fee of 1.75% of the outstanding balance of the Equity loan is charged. This will be increased annually by RPI +1%
  • Sale after five years
  • Open market value £420,000 (a 20% uplift in value)
  • First charge mortgage redemption payment (assuming no repayment of capital) £192,500
  • Equity loan 40% of the open market value = £168,000
  • Remainder available to purchaser £59,500

Barratt London General Terms and Conditions

Any promoted Barratt London offer is subject to contract and status. Offers are on selected plots only and are subject to availability. The offers advertised cannot be used in conjunction with any other offer on the same plot unless expressly stated otherwise. Prices and details are correct at time of going to press. All images are typical of Barratt London homes and are for illustrative purposes only. Please contact the development in which you are interested for further details.

Barratt London reserve the right to withdraw or alter any of these offers at any time prior to the payment of a reservation fee. Contracts must be exchanged within 28 days of reservation of your property. Failure to do so may result in the loss of all or part of your reservation fee and/or we may revoke any offer to sell the property to you at a discounted price.

The current specific offers being advertised in relation to selected Barratt London developments are also subject to the specific terms and conditions set out below (N.B. these offers may vary from time to time and you should refer to the development in which you are interested to discover which offers are available on specific plots and developments).

Barratt London will not be liable for the refusal of a mortgage based on the borrower’s individual circumstances which leads to the loss of any reservation fee. Barratt London will not be responsible for the failure of any deal due to any defects in your existing property which arise as a result of an inspection or survey, whether a part exchange deal has been agreed or not. These terms and conditions do not affect your statutory rights.

Barratt London is a brand name of BDW Trading Limited (Registered Number 03018173) which is a subsidiary of Barratt London Developments PLC (Registered Number 00604574) both with registered offices at Barratt London House, Cartwright Way, Forest Business Park, Bardon Hill, Coalville, Leicestershire, LE67 1UF.

You are strongly advised to obtain financial advice from an New Build Mortgage Advisor in respect of any mortgage product required. Barratt London maintain a list of New Build Mortgage Advisors who we recommend as having extensive knowledge of our offers and products and the associated mortgage requirements, though you may seek such advice from your own New Build Mortgage Advisor if preferred.