Help to Buy Scheme – Wales
What is it? What does it mean? Am I eligible?
What is Help to Buy Wales?
Help to Buy Wales is an Equity Loan scheme designed to help you get on or move up the property ladder. Under this scheme, qualifying applicants will get an Equity Loan from the Welsh Government of up to 20% of the purchase price of a new-build home!
Am I eligible for the scheme?
- A minimum deposit of 5% is required from you.
- The scheme is open to first time buyers as well as those moving home.
- The home must be your only residence, you cannot own or part own any other residential property
How much deposit do I need?
You must contribute a minimum cash deposit of 5% of the full purchase price.
Here is an example of How to Buy Equity Loan works on a property of £200,000.
If the property purchase price was £200,000
- Deposit (from you) 5% £10,000
- Equity Loan (from the government) 20% £40,000
- Mortgage (secured from a commercial lender) 75% £150,000
Can I buy a property regardless of my salary?
Help to Buy – Wales carry out an assessment of your application ensure that you are in a position to afford the shared equity loan and a conventional repayment mortgage. You must have access to a deposit (usually 5% of the purchase price).
What properties are included under this scheme?
- Homes in Wales. There are Help to Buy England and Help to Buy Scotland equivalents.
- Properties up to £300,000 in value
- New build homes only
How do the loan repayments work?
You will need to pay £1 monthly management fee from the start of the loan until it is fully repaid.
In your sixth year, you will start paying 1.75% of the original loan’s value as interest. And this will climb every year in line with the Retail Price Index (a measure of inflation) plus 1%.
Are there any restrictions?
Help to Buy Wales is aimed at helping individuals get onto or up the property ladder. It is not aimed at helping aspiring buy-to-let landlords. So the home you buy with your loan must be the ONLY one you own. You cannot sub-let your home until you have repaid the loan in FULL.
Who can I lend from?
Here are some of the lenders are offering mortgages alongside the Help to Buy – Wales shared equity loans:
- Principality Building Society
- Nationwide Building Society
- Lloyds Banking Group
- Barclays Bank Plc
There are many more. Talk to your bank about it today!
Where can I sign up for Help to Buy Wales?
The first port of call is to search for a new-build home through a participating builder in the scheme.
You will then need to submit your application to Help to Buy Wales.
You’ll find everything you need:Help to Buy Wales Website
Look at some of the properties we have for Sale:First Time Buyers
If you would like to have a chat with one of our sales team today, why not give us a call for free on 01970 636 000. Speak soon.