Unlock your dream home with Help to Buy – Wales

Are you dreaming of owning your own home but finding it difficult to navigate the complex world of mortgages and financing?

Look no further! Help to Buy – Wales is here to make your dream a reality.

In this guide, we will walk you through the ins and outs of this government-backed scheme, designed to help first-time buyers and existing homeowners purchase their dream new build home at an affordable price.

Whether you’re a young professional stepping onto the property ladder or a growing family looking for more space, Help to Buy – Wales presents an ideal opportunity that aligns with various budgets and lifestyles.

From shared equity loans to mortgage repayments and deposits, we will break down the eligibility requirements, the application process, and the benefits you can expect to receive.

Don’t let the daunting prospect of homeownership hold you back any longer. Let Help to Buy – Wales unlock the door to your dream Castle Green home today!

What is Help to Buy – Wales?

Help to Buy – Wales is a government initiative aimed at making homeownership more accessible and affordable for individuals, couples and families in Wales.

The scheme provides financial assistance to first-time buyers and existing homeowners who are looking to purchase a new-build property and to get onto the property ladder and achieve their dream of owning their very own home.

How does Help to Buy – Wales work?

Through the Help to Buy – Wales equity loan program, you can secure your new build home with just a 5% deposit.

As part of the scheme, the Government provides a shared equity loan amounting to up to 20% of your home’s cost, meaning you will only need a 75% mortgage to cover the remaining amount.

For the first five years, the Government’s share of the shared equity loan remains interest-free. You must repay the shared equity loan within 25 years, or earlier if you decide to sell your property. You are also free to pay off the shared equity loan at any point within that period.

How to apply for Help to Buy – Wales in 5 simple steps:

How does Help to Buy – Wales work?

Help to Buy – Wales works by providing financial assistance to eligible buyers, enabling them to purchase a property with a lower deposit of just 5% and more affordable mortgage rates. The scheme is open to both first-time buyers and existing homeowners who are looking to move to a new property. By offering shared equity loans and smaller deposits, Help to Buy – Wales makes it easier for buyers to secure a mortgage and get onto the property ladder.

What are the benefits of Help to Buy – Wales?

Help to Buy – Wales offers a range of benefits to buyers who may otherwise struggle to purchase a property. Here are some key advantages of the scheme:

1. Reduced deposit: With Help to Buy – Wales, buyers can secure a mortgage with a deposit of just 5% of the property’s value. This is significantly lower than the typical deposit required by most lenders, making it easier for buyers to get onto the property ladder.

2. Lower mortgage rates: Help to Buy – Wales offers competitive mortgage rates, which can help buyers save money over the long term. By securing a mortgage with a lower interest rate, buyers can enjoy lower monthly repayments and potentially pay off their mortgage sooner.

3. Unlock better loan-to-value rates: with Help to Buy – Wales you can unlock better loan-to-value (LTV) rates. Lenders will see you as being at a lower risk of missing repayments, which means you might benefit from a lower interest rate on your mortgage.

4. Shared equity loan: The shared equity loan provided by Help to Buy – Wales can help buyers bridge the gap between the cost of the property and the amount they can afford to borrow. This loan is interest-free for the first five years, giving buyers some breathing space to get settled and adjust to the financial responsibilities of homeownership.

5. Flexibility: Help to Buy – Wales offers flexibility in terms of property choice. Buyers can choose from a wide range of new-build properties across Wales up to the value of £300,000, allowing them to find a home that suits their needs and preferences.

6. Expert advice and support: The Help to Buy – Wales scheme is supported by registered agents who are trained to provide expert advice and assistance to buyers. These agents can guide buyers through the application process, provide information on available properties, and help with any queries or concerns along the way.

Help to Buy – Wales FAQ’s

What is the eligibility criteria for Help to Buy – Wales

To qualify for Help to Buy – Wales, you need to meet specific criteria, which include the following:
• Purchasing a new build home valued up to the maximum of £300,000.
• Being capable of financing a minimum of 80% of the property price through a combination of a repayment mortgage and a deposit of at least 5% of the purchase price.
• Securing a first charge repayment mortgage with an eligible lender.
• Should not sublet any part of the property acquired through the scheme.
• Should not be renting out your current residence while simultaneously purchasing a second home via Help to Buy – Wales.
• If you already own a home, you will need to sell your current home prior to applying for Help to Buy – Wales.
• Any mortgage used alongside Help to Buy – Wales must be a repayment mortgage and not an interest-only mortgage.

When does Help to Buy – Wales end?

The Help to Buy – Wales scheme has been extended until March 31, 2025. The final date for legal completion is 19th December, 2025.

Can I buy any home with Help to Buy – Wales?

Help to Buy – Wales is applicable to new build homes valued up to £300,000, with no specified minimum value.

How Much Deposit do I need for Help to Buy – Wales?

Help to Buy – Wales enables you to buy your new home with just a 5% deposit.

How much can I borrow with Help to Buy – Wales?

You are eligible to borrow up to 20% of the value of the new build home through a shared equity loan.

Is the equity loan interest-free?

Help to Buy – Wales is interest-free for the first five years, however, there is a management fee of £1 per month until the loan is repaid.

When do I have to pay the loan?

When using the Help to Buy – Wales scheme, the shared equity loan needs to be repaid within 25 years, or earlier, when you sell your home. However, you are able to pay off the shared equity loan at any point within that period.

Can I buy any home using Help to Buy – Wales?

Help to Buy – Wales scheme is only available on new-build homes in Wales that are valued up to a maximum of £300,000.