Help to Buy Wales
What is Help to buy Wales?
Help to Buy Wales allows eligible purchasers to buy new-build homes with assistance from the Welsh Government in the form of a shared equity loan.
What does this mean in practice?
Help to Buy Wales shared equity loans are available to both first-time buyers and home movers wishing to purchase new-build homes worth up to £300,000. Note that with Help to Buy Wales, buyers won't be able to sub-let their home.
How it works:
- Buyers will need to contribute a deposit equal to 5% of the property price.
- The Welsh Government (through Help to Buy (Wales) Ltd) will fund a shared equity loan for up to 20% of the purchase price.
- Buyers will then need to secure a mortgage to cover the remaining balance.
Are there any fees attached to the shared equity loan?
From the time a buyer receives the shared equity loan they will be charged a small administration fee of £1 per month.
Then, in the 6th year, they'll be charged interest of 1.75% per annum of the original shared equity loan amount. After this, the interest will increase every year. This increase is worked out by using the Retail Prices Index plus 1%.
All buyers will be contacted before the shared equity loan interest starts and they'll also be sent a statement about their shared equity loan each year.
The fees do not count towards paying back the shared equity loan.
Further details of the Help to Buy - Wales shared equity loan can be found in the below guidance document.
Click here to learn more about the Welsh Government Help to Buy scheme.