Help to Buy Wales
Help to Buy Wales - An Introduction
Help to Buy - Wales is a housing scheme that has been created by the Welsh Government to support those looking to purchase a new-build home in Wales, through a registered Help to Buy - Wales builder, up to a maximum purchase price of £300,000.
As of the 1st April 2023, homes purchased under the Help to Buy - Wales scheme must have a minimum EPC rating of B.
The Welsh Government have made the decision to extend the Help to Buy - Wales scheme until 31st March 2023, with the date of the 19th December 2025 set as the final date for legal and practical completion.
Help to Buy Wales - How Does It Work?
With the Help to Buy - Wales Equity Loan, you are able to purchase a new-build home with a 5% deposit.
The Welsh Government will provide a shared equity loan of between 10% - 20% of the purchase price, meaning you will need to secure a conventional repayment mortgage for the remaining balance.
Financial Example :
| Property Value - £200,000 | Amount | Percentage |
| Cash Deposit | £10,000 | 5% |
| Government Equity Loan | £40,000 | 20% |
| Your Mortgage | £150,000 | 75% |
You could be eligible for Help to Buy - Wales if :
- You are buying a new-build property up to a maximum value of £300,000, with a minimum EPC rating of B, from a registered builder.
- You must have a minimum 5% personal deposit.
- You must be able to fund up to 80% of the property value through a conventional repayment mortgage.
- You are buying the property for your own personal residence and are not planning on sub-letting any part of your home.
For full terms and conditions and affordability criteria please visit the Welsh Government website.
For the first five years, the Welsh Government's share of the equity loan is interest free. However, you will pay a £1 monthly management fee via Direct Debit.
From year six, you will continue to pay the £1 monthly management fee, plus monthly interest of 1.75% of the equity loan. This interest rate will rise each year, in April, by the Consumer Price Index (CPI) + 2%. You will continue to pay interest until the loan is repaid in full.
You must repay the equity loan in full when you pay off your repayment mortgage, sell your home or before the end of the equity loan term. This is typically 25 years.
You can repay your equity loan in full at anytime. If making a partial repayment, your first partial repayment will need to be equal to 10% of the market value of your home, at the point of repayment.
The home that you are looking to purchase must be purchased from a participating builders.
Please visit the Welsh Government website for a full list of participating builders.
Help to Buy Wales - Mortgage Products
We have a range of fixed rate mortgage products available for those looking to purchase a new-build home with the support of Help to Buy Wales.
If you are looking to apply for a new mortgage please visit unbiased.co.uk where they can search independent, regulated advisers in your area. They'll be able to discuss your needs and circumstances to help you find the right mortgage.
| Initial Interest Rate % | Overall Cost For Comparison | Maximum Loan To Value | Product Fee | Additional Features | |
| 5.00% | 7.9% APRC | 75% | NIL | £500 Cashback * | More Details |
| 5.15% | 7.9% APRC | 85% | NIL | £500 Cashback * | More Details |
| Initial Interest Rate % | Overall Cost For Comparison | Maximum Loan To Value | Product Fee | Additional Features | |
| 4.75% | 7.2% APRC | 75% | NIL | £500 Cashback * | More Details |
| 5.00% | 7.3% APRC | 85% | NIL | £500 Cashback * | More Details |
* Cashback will be provided to the Solicitor upon completion in the form of a BACS transfer.
Apply for a Help to Buy - Wales Equity Loan
If you would like to find our more information about Help to Buy - Wales, eligibility criteria along with how to apply please visit the Help to Buy - Wales Guidance Page on the Welsh Government website.
Your home may be repossessed if you do not keep up repayments on your mortgage.
