Help to Buy – Wales Guide

Monday, 29th January 2024

Owning a new home in North Wales could be easier to afford thanks to Help to Buy – Wales.


Using the scheme, you’ll typically need a 5% deposit and 75% mortgage. The remaining 20% is covered by the equity loan. Read our guide to Help to Buy – Wales and discover how it could help your money go further.

What is Help to Buy – Wales?


Help to Buy – Wales is a Government scheme, designed to make homeownership easier to afford. Last year applications for the scheme were extended and the price of homes eligible to be purchased using the scheme increased to £300,000.

The Help to Buy – Wales end date is now March 31, 2025, for applications. The final date for legal completions for Help to Buy – Wales properties is December 19, 2025.

Sales director Sian Pitt explained: “The idea behind Help to Buy – Wales is to support people who want to buy their own home by offering them assistance. It’s a great option for first-time buyers, young professionals and families. The core benefit of the scheme is that the equity loan gives people with a lower-level deposit access to more favourable interest rates. The deposit needed with Help to Buy – Wales is just 5% of the purchase price of the property. You’ll then only need a 75% repayment mortgage as the remaining 20% is covered by the equity loan. A key advantage is that the equity loan is interest-free for five years.”

How does Help to Buy – Wales work?


The Help to Buy – Wales requirements you’ll need to meet to be eligible for the scheme are that you’ll:

• be buying a new built home priced under £300,000 on a participating development

• be able to cover up to 80% of the purchase price through a combination of a deposit and repayment mortgage, typically a 5% deposit and 75% mortgage

“Help to Buy – Wales is open to first-time buyers and those who’ve sold an existing property, subject to contract. There’s no cap on your household income to qualify for Help to Buy – Wales,” Sian explained. “But checks will be carried to ensure you can afford to sustain homeownership. If these checks show you can secure a 90% mortgage without the support of the scheme, you won’t be offered the equity loan. “

The equity loan offered under Help to Buy – Wales is interest-free for five years. After that initial five years, there will be an interest fee of 1.75% of the property price at that time, increasing in line with the Consumer Price Index (CPI) plus 2%, which will be added to your monthly repayments of the loan.

The equity loan will need to be repaid within 25 years or when you resell.

The total equity loan you will repay is linked to the value of your home at the point of repayment, not the amount you borrowed.

What are the benefits of using Help to Buy – Wales?


1. You only need a 5% deposit so could buy a home sooner than you anticipated or a larger, more expensive home better suited to your current and future needs

2. The equity loan, for up to 20% of the property price, is interest-free for five years

3. Access to better mortgage rates than if you were simply buying with a 5% deposit and 95% mortgage

Where is Help to Buy – Wales available?


Help to Buy – Wales is only available on new-build homes in Wales priced up to a maximum of £300,000 and with a minimum Energy Performance Certificate rating of B.

It can be used to purchase new build houses in North Wales including those at Maes yr Haul in St Asaph and at Llys y Coed in Rhosrobin, near Wrexham. Between the two locations, there’s a good choice of two and three-bedroom homes under the £300,000 threshold, making them eligible to be purchased with the equity loan scheme.

How do I apply for Help to Buy – Wales


1. Find and reserve your new home. Help to Buy – Wales properties including those at Maes yr Haul in St Asaph, Denbighshire, and at Llys y Coed in Rhosrobin, Wrexham.

2. We can help put you in touch with independent financial advisors to help you secure a mortgage. Details of registered Help to Buy – Wales lenders are available here.

3. Apply for the equity loan. You’ll need to provide details of your household income, the property details, your proposed repayment mortgage and deposit details.

4. The Help to Buy – Wales eligibility calculator will be used to check your monthly income and outgoings to ensure you’re able to comfortably afford the shared equity loan.

5. When you have the authority to proceed from Help to Buy – Wales you can apply for your repayment mortgage.

6. Your conveyancer will explain the Help to Buy – Wales Equity Loan contract and your legal responsibilities before you sign the property sale contract and the Help to Buy – Wales equity loan contract. They’ll also make sure your repayment mortgage offer, property price and deposit are as agreed in the authority to proceed.

7. Help to Buy – Wales Ltd will check the paperwork is correct and issue the authority to exchange (ATE) to your conveyancer. The exchange of contracts is where you legally agree to buy a home. You will need to pay an exchange deposit of 5% to us.

8. Complete the purchase of your new home. Your mortgage lender will provide its share of the funds and Help to Buy – Wales will pay the equity loan to the conveyancer. You’ll now legally own your home and be able to move in.

9. The conveyancer will send confirmation of the sale to Help to Buy – Wales. They will also register a legal charge on your home with the Land Registry for Help to Buy – Wales Ltd and a separate legal charge for your mortgage lender. These charges will be shown on your property title deeds.

10. Help to Buy – Wales Ltd will set up a Direct Debit so you can pay the £1 monthly management fee. They will arrange for you to pay fees and interest payments on your equity loan and also help set up repayments when you’re ready to repay some or all of your equity loan.

You can find more information about Help to Buy – Wales here.

Looking to buy a new home but not sure where to start? Read our step-by-step guide to buying a house.

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