Help to Buy

Help to Buy – Wales is an initiative that provides shared equity loan assistance to home buyers from Help to Buy (Wales) Limited (HtBW) with funding provided by the Welsh Government. The Help to Buy – Wales scheme makes new‑build homes available to all home buyers (not just first time buyers) who wish to buy a new home, but may be constrained in doing so – for example as a result of deposit requirements – but who could otherwise be expected to repay a mortgage. Support of up to a maximum of 20%  of the purchase price is available to buyers through a shared equity loan funded by HtBW, while buyers are required to provide a deposit of a minimum of 5% of the purchase price. Help to Buy – Wales is available in Wales from house builders registered to  offer the scheme. 

How does it work?

Help to Buy – Wales enables buyers to purchase a new property, funded by a buyers’ deposit, a repayment mortgage and a shared equity loan from HtBW. This enables you to take out a mortgage on which you make repayments in the normal way. Your  mortgage lender is likely to require, and it is a requirement of HtBW, that you contribute a deposit of at least 5% of the full purchase price and your mortgage and deposit must cover a combined minimum of 80% of the total purchase price. The rest of the purchase price will be paid for with a shared equity loan from HtBW. Your first mortgage must be a repayment mortgage (meaning that you must be required under the mortgage to make payments of interest and capital which are designed to repay the
mortgage over the stated time). You are not permitted to buy a Help to Buy – Wales property with an interest–only first mortgage.

Who can take part in the scheme?

The scheme is open to all buyers seeking a new-build home, subject to restrictions. Help to Buy – Wales buyers must be able to fund up to 80% of their selected property through a combination of a conventional repayment mortgage, and a minimum deposit of 5% of the purchase price. Interest–only mortgages are not permitted for the Help to Buy – Wales initiative. Buyers must take out a first charge repayment mortgage with a qualifying lender. The maximum purchase price for an eligible property under the scheme is £300,000. HtBW will carry out an assessment of an application (see below) by a potential Help to Buy – Wales buyer to ensure that they are in a position to afford a conventional mortgage for their proposed purchase. This protects tax payers’ investment in the Help to Buy – Wales home. You must have access to a minimum 5% deposit. It is very unlikely that your lender will allow you to proceed without a deposit and you cannot consider a Help to Buy – Wales purchase unless you have access to a 5% deposit.