Help to Buy Wales: Your Stepping Stone to Homeownership

• The Help to Buy scheme in Wales was extended to March 2025, making buying a new home more accessible for first-time buyers and existing homeowners.
• The Welsh government provides an interest-free (for the first 5 years) equity loan of up to 20% of the property's value.
• The scheme is available on new-build properties up to the value of £300,000. You only need a 5% deposit to get started.
• You have the flexibility to repay the loan whenever you like (as long as it's within the 25-year loan term) or upon the sale of your property.

How does Help to Buy Wales work?

• You need to save a minimum 5% deposit of the property's value.
• The Welsh government provides an equity loan of up to 20% of the property's value.
• You need to secure a mortgage for the remaining 75% of the property's value.
• 5% deposit + 20% equity loan + 75% mortgage = 100% home ownership.

Example:

If you're buying a £200,000 home, you'd need to save £10,000 for a deposit, get a £150,000 mortgage, and receive an equity loan from the Welsh government of £40,000.

What is the eligibility criteria?

While the Help to Buy scheme in Wales is primarily targeted at first-time buyers, it's important to note that existing homeowners are also eligible under certain circumstances.

To qualify for the scheme, you generally need to meet the following criteria:

While many well-known house builders in Wales are participating in Help to Buy, not all new builds are eligible so it's best to check if the property you're interested in is part of the scheme.

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How To Buy A House Without Killing Anyone could be the difference between every mover’s dream, buying and moving into your new home stress-free, or, stress, missed deadlines, legal disasters, building defects, and possibly the collapse of the whole transaction. (Costing you a small fortune, a head full of grey hairs, and, driving you to threaten the life of your solicitor, lender, co-owners, family, partner, or some combination of all five).

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Applying for Help to Buy in Wales

• 1

  Find a registered new-build home

• Identify new-build homes in Wales registered with the Help to Buy scheme in Wales. You can check with local estate agents or directly with builders.
• Tour show homes to get a better understanding of the available properties and their features.

• 2

  Get a Mortgage in Principle (MIP) and instruct a solicitor

• Seek advice from a mortgage broker to determine your affordability and suitable mortgage products.
• Submit an application to a lender and provide the necessary documentation, such as proof of income, employment, and credit history.
• Once your application is approved, you'll receive an agreement in principle, which outlines the maximum loan amount you can borrow.
• Make sure to instruct your solicitor early so they can hit the ground running with the legal side of the transaction. This is where our expert Help to Buy solicitors come in; get a quote below.

• 3

  Apply to Help to Buy Wales

• Prepare documents such as proof of identity, proof of address, bank statements, and payslips.
• Fill out the application form, providing details about your financial situation, the property you're buying, and your chosen lender.
• Submit your completed application form and supporting documents to Help to Buy Wales.

• 4

  Approval and reservation

• The Welsh Government will assess your application to ensure you meet the eligibility criteria.
• If your application is approved, you'll receive a notification confirming your eligibility for the equity loan.
• Once your application is approved, you can reserve the property with the builder/developer.

• 5

  Exchange of contracts and completion

• Your solicitor will handle the legal aspects of the purchase, including exchanging contracts with the developer.
• You'll need to pay a deposit.
• The remaining balance, including the mortgage and equity loan, will be paid to the relevant parties.
• The legal ownership of the property is officially transferred to you, and you can move into your new home!

Remember: The specific steps and timelines may vary. It's essential to consult with a mortgage broker and an experienced solicitor to ensure a smooth process.

Repaying the equity loan

The loan has a 25-year repayment term, but you have the flexibility to repay it ahead of schedule.

It's interest-free for the first 5 years. After this period, interest will be charged at a fixed rate of the Consumer Price Index (CPI) percentage plus 2%. You'll be responsible for paying interest on the outstanding loan balance.

You have three main options to repay the equity loan:

Staged repayments

You can make regular, smaller repayments over a set period, typically 25 years. If you have the financial means, you can opt for larger, more frequent repayments to reduce the overall interest paid.

If you make a partial repayment, the remaining balance of your equity loan should be no less than 5% of your property's current market value.

You cannot make a partial repayment if you're behind on payments unless you pay off all arrears and fees simultaneously.

Full repayment at sale

When you sell your property, you must repay the entire remaining equity loan, including any accrued interest.

Remortgaging

You can remortgage your property to obtain a new mortgage that includes the Help to Buy equity loan. This might offer the opportunity to secure a better interest rate and potentially reduce your monthly payments.

You need to determine the property's current market value before completing a remortgage. We offer this service with a Help to Buy-compliant RICS valuer.

Full Help to Buy Wales Process with SAM

From your initial purchase to local RICS surveyors for a Help to Buy valuation and expert solicitors for remortgaging or selling your Help to Buy property. SAM has you covered.

We're on 99% of mortgage lender panels and provide fixed-fee, no-obligation quotes for all your Help to Buy needs. Property challenges solved.

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