Call for your free quote 0800 955 0058

Help to Buy scheme for equity loans hits record numbers for June

The government’s Help to Buy scheme has hit record levels in June for the equity loan part with 4,745 completions.

Started in April 2013, the Help to Buy scheme has now completed on 56,402 properties with loans by the government valued at £2.4 billion with June being a new record with 4,745 valued at £220 million.

The total value of properties purchased over the last 27 months by first time buyers and home movers is £12.2 billion and for June alone is £1.1 billion.

Part two of Help to Buy is the mortgage guarantee scheme with 56,401 property completions compared to 56,402 for part 1 equity loans.

Over £10 billion of mortgages have been advanced for the 112,803 Help to Buy scheme buyers in addition to the loans secured from the government.

How do Help to Buy schemes work

The government set-up the first part of Help to Buy scheme giving an equity loan of 20% of the property value interest free and available on new build properties only.

It can be accessed by first time buyers and home movers with a small 5% deposit and the remaining 75% is provided by a mortgage from a lender for properties valued up to £600,000.

Phase two of Help to Buy is the mortgage guarantee scheme again for both first time buyers and home movers on both new-build and existing homes.

You only need a 5% deposit although you must arrange a 95% mortgage from a lender as the government has agreed with the lender to guarantee them 15% of the property value, rather than provide you with a loan.

Properties can be valued up to £600,000 but these schemes are not available for second homes, switching remortgage buyers or for buy-to-let properties.

Help with the deposit for a new home can come from family members as the equity release buyer can access cash using a lifetime mortgage and give to a child or grandchild.

Majority of buyers outside London

The Help to Buy scheme has been hailed a success by George Osborne with the equity loan part more popular outside London. Of the total 56,402 completions only 3,128 or 5.5% were in London Boroughs with loans of £194 million.

For the other 36 built-up metropolitan districts such as Liverpool, Manchester Newcastle the number of completions were 12,032 with a value of £402 million.

There are a total of 56 unitary authorities such as Bedfordshire, Cornwall, Wiltshire, Peterborough and Kingston upon Hull with completions of 15,821 and a value of £644 million.

The majority of equity loans were for the 201 Shire districts such as Aylesbury Vale, Colchester, Horsham, Ashfield and Northampton with the largest number of completions of 25,421 and a value of £1.2 billion.

Help to Buy schemes will continue until 31 March 2020 for the equity loan part and 31 December 2016 for the mortgage guarantee part.

What are your next steps?

Speak to our LCM mortgage advisers if you are planning to move home, buying your first home, remortgaging your existing home to a new cost effective mortgage deal or are a buy-to-let investor.

Learn more by using the mortgage cost calculators, equity release calculator and property value tracker chart. Start with a free mortgage quote or call us and we can take your details.

For equity release buyers our London City Mortgage brokers can recommend lifetime mortgages allowing you to receive cash from your property to help maintain your standard of living as costs rise.

Use your dashboard to access online mortgage quotes, money off vouchers and start your mortgage application online 24/7 on desktop, tablet or smartphone.

Mortgage Best Buys

These are examples of mortgage products we can approach with many more offering interest rates and flexibility to meet your needs.

1.17% Fixed Rate
60% Loan to Value
£1,025 App Fee
Until 31/09/2022
Reverts to 3.59%
1.16% Fixed Rate
60% Loan to Value
£1,525 App Fee
Until 01/11/2022
Reverts to 4.09%
1.19% Fixed Rate
60% Loan to Value
£999 App Fee
2-Years Time
Reverts to 3.59%
1.18% Fixed Rate
60% Loan to Value
£1,034 App Fee
Until 31/10/2022
Reverts to 3.59%

The latest mortgage news

25 Jun 2021

Seaside towns in Britain with house prices up 10pc due to strong demand

Demand for coastal living has seen house prices in Britain’s seaside towns rise 10% over the year as homeowners change their lifestyle.

24 Jun 2021

House prices at record levels with lack of property choice for buyers

Supply of properties on the market and available to buyers is an all-time low at the same time house prices are at record levels.

11 Jun 2021

Prices for house sales are rising four times faster than flats

Strong demand for houses has driven price growth up 5.2% in the last year which is over four times more than the 1.1% growth for flats.

28 May 2021

Fixed rate mortgage deals fall to under 1pc as lenders compete for borrowers

Fixed rate mortgages are cut to 0.99% for borrowers with large deposits looking to remortgage as competition increases from lenders.

Call for your free quote 0800 955 0058


    Equity Release may involve a Lifetime Mortgage or a Home Reversion Scheme. To understand the features and risks, please ask for a personalised illustration. Equity Release may affect your entitlement to means tested state benefits and will impact on the size of your estate. For Equity Release London City Mortgages charge a fixed fee upon completion of £695. For Mortgages a fixed fee is charged on application. Typically this is from £295 up to £495 for the services selected.


    Equity Release - Equity Released from your home will be secured against it. Mortgages – Your home may be repossessed if you do not keep up repayments on your mortgage or other loans secured against it. Think carefully before securing other debts against your home. The information contained in this website is subject to the UK regulatory regime and is therefore intended for consumers based in the UK.


    9th Floor, 30 Crown Place
    London, EC2A 4EB

    0800 955 0058


    London City Mortgages Limited is a registered company in England & Wales under company number 09278987. London City Mortgages Limited is an Appointed Representative (FCA no. 655965) of Blackstone Moregate Limited (FCA no. 459051) which is authorised and regulated by the Financial Conduct Authority. LCM and LCM Equity Release are trading names of London City Mortgages Limited.

    2021 © London City Mortgages.
    Website designed & developed by Spyre Media