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What Is Help to Buy – Wales?

Posted 13 April 2023 by Keith Osborne

What is the Help to Buy – Wales scheme, and how does it work?

While Help to Buy in England has come to an end, the Welsh government has extended the Help to Buy – Wales scheme to run until March 2025.

Help to Buy – Wales is offered on selected properties up to a maximum price of £300,000. From 1 April 2023, all homes sold through the scheme will need to meet a minimum of EPC B.

The buyer has to put down a 5% deposit, and the government will provide an equity loan of between 10% and 20%. The buyer needs to find a repayment mortgage for the remaining percentage of the purchase price.

The equity loan is interest-free for the first five years. ​After the first five years, there is an interest fee of 1.75% of the property price at that time, increasing in line with the Consumer Price Index (CPI) plus 2%, that will be added to your monthly repayments of the loan. When you sell your home, the Welsh government will receive the remaining percentage from your sale price.

Here’s an example:

Property price £200,000 (100%)
Initial deposit £10,000    (5%)
Equity loan £40,000    (20%)
Remaining mortgage £150,000    (75%)

Eligibility for Help to Buy – Wales

  • You must be able to fund up to 80% of your selected property through a combination of a conventional repayment mortgage, and a minimum cash deposit of 5% of the purchase price.
  • You must take out a first charge repayment mortgage with a qualifying lender (see www.gov.wales/help-buy-wales-participating-lenders)
  • When you buy your new build home with an equity loan, you must be able to afford the monthly fee and interest payments.
  • The home you purchase must be your only home.
  • You must tell the government if you or anyone you are buying with has a connection with a homebuilder, as this could affect your eligibility for the equity loan scheme.

You can read the Welsh government’s guide here.


Useful links

What is a Help to Buy ISA? 

The buying process Q&A 

Two-year or five-year fixed-rate mortgage?

10 mortgage questions to ask 

Repaying your Help to Buy equity loan 

How to use your equity to help your kids buy a new home

What you should teach your kids about mortgages and borrowing

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