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Help to Buy - Wales

Helping first time buyers in Wales purchase a brand new homes with just 5% deposit

What is Help to Buy?

What is Help to Buy?

Help to Buy – Wales is backed by the government and is designed to help people purchase a new-build home up to the value of £250,000 in Wales.

The Help to Buy scheme differs depending on where you live – there are regional variations for England, London and Wales.

How does it work?

With a Help to Buy - Wales equity loan, you can purchase your newly-built home with just a 5% deposit.

As part of the scheme, the government lends you up to 20% of the cost of your home, meaning that you’ll only need a 75% mortgage to make up the rest.

For the first five years, the government’s share of the loan is completely interest-free. You must repay the Help to Buy loan after 25 years, or earlier if you sell your home, repaying the same percentage of the proceeds of the sale of your home (i.e. if you received 20% on purchase, then you must pay 20% of the proceeds of the future sale).

You own 100%
of your home
Help to Buy diagram
1

Find and reserve your Bellway home

2

Apply for your mortgage with Help to Buy - Wales

3

Receive your mortgage offer

4

Move into your brand new Bellway home

Who’s eligible?

Who is eligible?

Help to Buy - Wales is currently open to everybody looking to buy a new-build home as their only residence.

Find my home

Top FAQs about
Help to Buy

Are there any restrictions under the scheme?
A.

The property you purchase using Help to Buy - Wales must be your only home and you must live in it.

You cannot use Help to Buy - Wales in conjunction with part exchange on an existing home.

If you already own a home you will have to sell it before using Help to Buy - Wales.

Any mortgage used in conjunction with Help to Buy - Wales must be a repayment mortgage (not an interest-only mortgage).

You must seek permission to extend, or alter the property purchased using Help to Buy - Wales.

Can I buy any home using Help to Buy - Wales?
A.

The scheme is only available to new build homes, and price caps do apply. In Wales, the scheme is available on new build homes priced up to £250,000.

How much deposit do I need?
A.

You need a 5% deposit.

How much can I borrow using Help to Buy - Wales?
A.

In Wales, you can borrow up to 20% of the cost of the home, with a maximum property price of £250,000.

Is the equity loan interest-free?
A.

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. After five years interest will apply – currently 1.75% in year six, then 1.75% and any increase in the Retail Prices Index (RPI) plus 1% each subsequent year.

When do I have to repay the loan?
A.

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

Can I repay the loan early?
A.

You can pay back all, or part, of the loan at any time, with a minimum of 10% of the prevailing market value of your home.

Can I buy any home using Help to Buy - Wales?
A.

The scheme is only available to new build homes, and price caps do apply. In Wales, the scheme is available on new build homes priced up to £250,000.

I wouldn’t have been able to purchase a new home on my own without the support of Help to Buy, so the scheme has been hugely beneficial for me Zoe Hanks, Renovo, Essex division

The Help to Buy scheme works slightly differently depending on your location.
Make sure to get the right information.

More than a home builder

All you need when it comes to finding your new home

You may have received an email via Rightmove dated 26th June 2020 that indicated that the Help to Buy - Wales scheme would only be available to first time buyers after April 2021. At the time of broadcast this was incorrect, Help to Buy - Wales currently ends 31st March 2021 for all purchasers and no announcement has been made by the Welsh Government as to any possible extension of the scheme beyond that date.

*YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT. Help to Buy is subject to the Homes and Communities Agency’s (HCA) terms and conditions and is available on new build homes on selected Bellway developments where the property represents your only residence. Help to Buy is available to first-time eligible buyers only and is subject to maximum regional price caps. HomeBuy agent eligibility checks are required. The equity loan is interest free for the first five years. If you are an eligible first-time buyer, the Government will lend you a minimum of 5% and up to 20% (or up to 40% in London) of the market value of your new build home. You start to pay interest from year six, on the fifth anniversary of your equity loan and this is calculated at a rate of 1.75% of the equity loan amount. The interest rate will rise each year thereafter in April by the Consumer Price Index (CPI), plus 2%. The interest you pay during the life of the equity loan does not reduce the amount you owe. The amount of interest you pay will reduce if you make part repayments. Interest will be worked out on the amount of equity loan left to pay. You may be charged interest on overdue money and pay administration fees to make changes to your equity loan. When your equity loan starts you must pay a £1 monthly management fee, this is paid for the life of your equity loan. When you take out your equity loan, you agree to repay it in full, plus interest and management fees. You must repay your equity loan in full: at the end of the equity loan term (normally 25 years), when you pay off your repayment mortgage, when you sell your home and if you do not comply with the terms set out in the equity loan contract and you are asked to repay the loan in full. Help to Buy operates under terms and conditions imposed by the HCA and may be subject to change. Please visit www.helptobuy.gov.uk for further information. Help to Buy cannot be used in conjunction with other schemes. Information correct at time of broadcast. Please see www.helptobuy.gov.uk/equity-loan/eligibility/ for further information. †Terms and conditions apply.