Leeds Building Society has pledged to launch a range of Help to Buy London mortgages when the Government scheme goes live next month.
HTB London, which was announced in the Autumn Statement, allows borrowers with a 5 per cent deposit to obtain an interest-free loan from the Government of up to 40 per cent of the value of a newly-built property.
Leeds director of business development Martin Richardson says: “We are committed to supporting this important Government initiative, which makes Help to Buy a practical solution in London, where the average house price is almost 18 times the average salary.
“Affordable housing in London has typically relied on shared ownership and Help to Buy London complements our extensive range of shared ownership mortgages, providing additional choice for consumers.
“We’re pleased to be among the first lenders to join this latest scheme, which builds on the success of our support for Help to Buy equity in England, Scotland and Wales.
“As part of our efforts to support borrowers who are not well-served by the wider market, we welcome initiatives which harness innovation to help more people to have the homes they want, including first-time buyers.”
Leeds launched a range for the Help to Buy equity scheme in the summer of 2013.