The new Help to Buy scheme for London has launched, allowing residents to buy a new home with a 5% deposit and a mortgage as low as 55%.
First-time buyers in the capital can purchase a new home with a deposit backed by a 40% interest equity loan for the first 5 years.
The new scheme is an extension of the current Help to Buy scheme launched in 2013.
Under the current scheme, loans of up to 20% were made available to first-time buyers on new homes worth up to £600,000.
The new scheme will allow loans for London residents to be doubled up to 40% when purchasing a new home in London.
Equity loans have also been extended to 2021 with a further £8.6 billion, aiming to help 145,000 more people take steps towards owning their first home.
Communities Secretary Greg Clark said:
“We’re determined to make home ownership a realistic aspiration for hard-working young people, wherever they are in the country.
“Our multi-billion pound investment will open the door to thousands of Londoners wanting to own their own home, following in the footsteps of nearly 270,000 people who have already bought through government-backed schemes.”