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.

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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.”

NatWest called Home to Buy London “a great extension” to the government’s existing scheme

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.

Couples can get a government bonus up to £6,000 with a Home to Buy: ISA

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.