NatWest and Royal Bank of Scotland are backing the government’s Help to Buy London scheme.
The scheme offers prospective homeowners a government loan of up to 40% of the purchase price.
Customers will need to provide a minimum 5% deposit and be eligible for a 55% mortgage to make up the rest of the cost.
The maximum value of the home that could be bought is £600,000.
To be eligible for Help to Buy London – an extension of the national Help to Buy shared equity scheme – you must live in one of the 33 London boroughs.
Lloyd Cochrane, head of mortgages at NatWest and Royal Bank of Scotland, said: “With property prices continuing to rise, we understand how difficult it is for people to get on the London property ladder.
“The Help to Buy schemes have been a help to a great deal of customers facing the prospect of raising a large deposit, so this new scheme for London should open the way for more people to buy their dream home.”
Graham Felstead, head of NatWest Intermediary Solutions, added: “We have been a long time supporter of the government’s shared equity schemes and are happy to be able to inform brokers and their customers that we’ll be able to accept applications from London-based customers looking to buy their first home from 1 February.
“This is a great extension to a scheme which has already had a great impact on first time buyers.”
The national Help to Buy scheme is aimed at helping first-time buyers get on the property ladder, and takes a number of different forms.With Help to Buy: Equity Loans, the government lends you 20% of the cost of a new-build home, leaving you needing a 5% deposit and 75% mortgage.
Buyers are not charged loan fees on the 20% loan for the first five years of owning their home.
Another option is to open a Help to Buy: ISA, which will see the government boosting your savings by 25% – for every £200 you save, you get a government bonus of £50.
You can receive a maximum government bonus of £3,000, but remember each buyer can open their own account, so if you’re buying with your partner, you could bank a total of £6,000.