Help to Buy Wales provides a Welsh Government equity loan towards a new-build home. It can reduce your lender mortgage, but the government loan is a separate debt, also secured on your home.
How Help to Buy Wales works
WHO
First-time buyers and home movers
You may qualify when buying your first home or moving, provided you need the support and meet the scheme’s checks.
HOMES
New-build homes from registered builders
The scheme covers eligible new homes in Wales. The builder must be registered with Help to Buy Wales.
SUPPORT
Three parts fund your purchase
Your cash deposit, lender mortgage and government equity loan work together to cover the purchase price.
REPAY
Your home’s value affects repayment
You repay the government’s percentage share, so the amount can rise or fall as your home’s value changes.
Who can apply for the scheme?
The property
A Welsh new build costing up to £300,000, with an energy rating (EPC) of B or better.
Your circumstances
It must be your only home. You must need support and pass both scheme and lender checks. You cannot rent it out or keep another home.
Your deposit and mortgage explained
The Help to Buy scheme in Wales requires at least a 5% cash deposit. The equity loan covers up to 20% of the purchase price, while a repayment mortgage from a qualifying lender funds the rest. Your mortgage payments cover both the amount borrowed and interest.
Illustrative example: a £240,000 home
Funding
Amount
Share
Your deposit
£12,000
5%
Government loan
£48,000
20%
Lender mortgage
£180,000
75%
This example is not a mortgage offer. Alongside your deposit, you also need to budget for legal and mortgage fees, any Land Transaction Tax due, and the costs of owning your home.
Equity loan charges and repayment
You pay no equity-loan interest for five years, but a £1 monthly fee applies from the start. From year six, interest starts at 1.75% a year, paid monthly.
Later annual rate increases use Consumer Prices Index (CPI) inflation plus 2%. The formula treats negative CPI as zero. However, these payments only cover interest and fees, so you still need to repay the equity loan itself.
Repayment follows your equity percentage of the home’s value, so rising house prices can increase what you owe. On sale, the higher of the sale price and independent valuation applies. For example, if both reach £270,000, an unchanged 20% share means repaying £54,000. You must also pay any interest and fees due and clear your separate lender mortgage balance.
The equity loan normally falls due within 25 years, or sooner if you sell your home or pay off your main mortgage. You can also repay early. Check the buyer’s guide for full terms.
How to apply for the scheme
First, discuss funding with an adviser. Then reserve a home, appoint a scheme-trained conveyancer and apply for the equity loan. Make your full lender mortgage application after the scheme issues its Authority to Proceed.
How Muttuo can help
Explore suitable mortgages and other first-time buyer schemes with Muttuo.
Review your deposit
Budget for future charges
Compare lender mortgages
Plan your Welsh home purchase
Discuss your Help to Buy Wales mortgage funding options.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Common Help to Buy Wales questions
When do applications close?
The current deadline is 31 March 2027. This is the application deadline, rather than the date every purchase must complete.
Can I buy an older home?
No. Only eligible new builds from registered builders qualify.
