The complete guide to Help to Buy Wales

• The Help to Buy scheme in Wales has been extended to 31 March 2027.
• The Welsh Government provides an equity loan of up to 20% of the property's value, which is interest-free for the first five years.
• The scheme is available on new-build properties up to the value of £300,000. You only need a 5% deposit to get started.
• You have the flexibility to repay the loan whenever you like (as long as it is within the 25-year loan term) or upon the sale of your property.

How does Help to Buy Wales work?

• You need to save a minimum 5% deposit of the property's value.
• The Welsh Government provides an equity loan of up to 20% of the property's value.
• You need to secure a mortgage for the remaining 75% of the property's value.
• 5% deposit + 20% equity loan + 75% mortgage = 100% home ownership.

How can we help?

Help to Buy Solicitors for Wales

• CQS-accredited solicitors in Wales.
• We handle new build purchases, partial or full repayments.
• Fixed Fee, All-Inclusive legal fees.
• Fast, efficient to meet Help to Buy deadlines.
• PLUS, local Welsh RICS surveyors if you need a valuation.

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What is the eligibility criteria?

While the Help to Buy scheme in Wales is primarily targeted at first-time buyers, it is important to note that existing homeowners are also eligible under certain circumstances.

To qualify for the scheme, you generally need to meet the following criteria:

While many well-known house builders in Wales are participating in Help to Buy, not all new builds are eligible, so it is best to check if the property you are interested in is part of the scheme.

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Applying for Help to Buy in Wales

• Identify new-build homes in Wales registered with the Help to Buy scheme. You can check with local estate agents or builders directly.
• Tour show homes to get a better understanding of the available properties and their features.

• Seek advice from a mortgage broker to determine your affordability and find suitable mortgage products.
• Submit an application to a lender and provide the necessary documentation, such as proof of income, employment, and credit history.
• Once your application is approved, you will receive an agreement in principle, which outlines the maximum loan amount you can borrow.
• Make sure to instruct your conveyancing solicitor early so they can hit the ground running with the legal side of the transaction. This is where our expert Help to Buy solicitors come in; get a quote below.

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• Prepare documents such as proof of identity, proof of address, bank statements, and payslips.
• Fill out the application form, providing details about your financial situation, the property you are buying, and your chosen lender.
• Submit your completed application form and supporting documents to Help to Buy Wales.

• The Welsh Government will assess your application to ensure you meet the eligibility criteria.
• If your application is approved, you will receive a notification confirming your eligibility for the equity loan.
• Once your application is approved, you can officially reserve the property with the builder/developer.

• Your solicitor will handle the legal aspects of the purchase, including raising initial enquiries and exchanging contracts with the developer.
• You will need to pay your deposit.
• The remaining balance, including the mortgage and equity loan, will be paid to the relevant parties upon completion.
• The legal ownership of the property is officially transferred to you, and you can move into your new home!

Remember: The specific steps and timelines may vary. It is essential to consult with a mortgage broker and an experienced solicitor to ensure a smooth process.

Repaying the equity loan

The loan has a 25-year repayment term, but you have the flexibility to repay it ahead of schedule.

It is interest-free for the first five years. After this period, you will be responsible for paying interest on the outstanding loan balance. This is calculated using the Consumer Price Index (CPI) plus an additional percentage.

You have three main options to repay the equity loan:

Partial repayment (staircasing)

You can make smaller repayments over the life of the loan. If you have the financial means, you can opt for larger, more frequent repayments to reduce the overall equity the government holds in your property.

If you make a partial repayment, the remaining balance of your equity loan should be no less than 5% of your property's current market value.

You cannot make a partial repayment if you are in arrears on your interest payments unless you clear all arrears and administrative fees simultaneously.

Full repayment upon sale

When you sell your property, you must repay the entire remaining equity loan based on the property's current market value, alongside any accrued interest or arrears.

Remortgaging

You can remortgage your property to obtain a new primary mortgage that includes the funds to clear the Help to Buy equity loan. This allows you to consolidate your debt into a single monthly payment.

To complete a repayment (whether partial, full, or via remortgage), you must first determine the property's current market value. We offer this valuation service utilising our nationwide panel of Help to Buy-compliant RICS valuers.