Buying a home in Wales can be more affordable than other parts of the UK, but purchasing a property can still be challenging, and the Help to Buy Wales scheme is designed to help people buy a new-build home. Here, we’ll explain how Help to Buy Wales works, where it’s available, which properties qualify, and much more.
What is Help to Buy Wales?
Help to Buy Wales is a Welsh government scheme that helps people purchase a new-build property with the support of a government-backed equity loan.
Instead of funding the entire property purchase with a deposit and a mortgage, the government lends you part of the purchase price, reducing the size of the mortgage you need.
Help to Buy Wales is open to both first-time buyers and existing homeowners, provided you meet the eligibility criteria. Keep in mind, the scheme is separate from the Help to Buy ISA, which is a savings product rather than a mortgage scheme, and is no longer open to new applicants.
How does the scheme work?
With Help to Buy Wales, you’re able to buy a new-build home using three components:
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Your deposit (at least 5% of the property price).
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A Help to Buy Wales equity loan (up to 20% of the property price).
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A repayment mortgage (typically 75% of the property price).
Here’s a quick example of how this would look for a property worth £250,000:
|
Percentage |
Amount |
|
|
Your deposit |
5% |
£12,500 |
|
Shared equity mortgage |
20% |
£50,000 |
|
Mortgage with a lender |
75% |
£187,500 |
Here are some key features explaining more about how this scheme works:
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The equity loan is interest-free for the first 5 years.
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From year 6 onwards, interest becomes payable on the equity loan.
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The loan is repayable as a percentage of the property’s value, not the original amount borrowed.
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You repay the equity loan when you sell, remortgage, or reach the end of your mortgage term.
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The equity loan needs to be repaid within 25 years.
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If making a partial repayment, your first repayment needs to be at least 10% of the current market value of your home.
Calculating the Help to Buy Wales interest rate
For the equity loan provided by the Welsh government, after year 5, your initial interest rate is 1.75%, and it increases each year in April by the Consumer Price Index (CPI) plus 2%.
Here’s an example showing how the government calculate the rate:
|
Year |
Interest rate calculation |
Interest rate |
|
1 to 5 |
No interest payments |
0% |
|
6 |
Not applicable |
1.75% |
|
7 |
1.75% (year 6 rate) + 0.08% 1.75% (previous interest rate) x 4.5% (2.5% CPI + 2%) = 0.08% (interest increase) |
1.83% |
|
8 |
1.83% (year 7 rate) + 0.08% 1.83% (previous interest rate) x 4.5% (2.5% CPI + 2%) = 0.08% (interest increase) |
1.91% |
When does Help to Buy Wales end?
It’s due to end in September 2026 (subject to further extensions). The official deadline for applications is 30 September 2026. The Help to Buy Wales scheme has been extended multiple times, but there’s no guarantee there will be future extensions.
Eligibility criteria for the scheme
To use this scheme, you must meet the specific criteria set by the Welsh Government (and those set by the lender you use). Typical Help to Buy Wales eligibility includes:
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The property must be a new-build home.
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Maximum property price of £300,000.
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The house must have an EPC rating of at least B.
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Minimum 5% deposit from you.
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The home must be your primary residence.
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You must use a repayment mortgage.
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You must purchase through a registered Help to Buy Wales housebuilder.
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There are no income caps, and you do not need to be a first-time buyer.
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You must not be planning to sublet any part of the house you are buying through the scheme.
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You’re not allowed to rent your existing home and buy a second home through the scheme.
How to get a Help to Buy mortgage in Wales
Getting a Help to Buy mortgage in Wales involves a few more steps than a standard application, because the equity loan must be approved alongside your mortgage.
The typical process for this Welsh scheme looks like this:
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Speak with a broker: They’ll review your income, credit profile, and deposit to establish how much you can realistically borrow and the best lender for you to use with Help to Buy Wales.
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Choose a property: You must reserve a qualifying new-build property from a registered Help to Buy Wales housebuilder. Only specific plots are eligible under the scheme.
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Apply for the equity loan: Your broker will help coordinate the equity loan application alongside the mortgage application with your chosen lender, ensuring all documents are submitted correctly and on time.
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Get a Help to Buy mortgage offer: Your mortgage application is submitted to a participating lender. The lender will then carry out affordability checks and issue a formal mortgage offer.
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Exchange and complete: Help to Buy Wales is currently only available until September 2026 (and may not be extended). Your broker can help keep everything aligned to avoid delays and ensure your mortgage and application get processed in time.
Because lender criteria and scheme deadlines can change, starting with advice from a broker reduces the risk of choosing the wrong lender, missing key deadlines, or discovering affordability issues too late in the process. Get started with one of our advisers below.
Begin your mortgage journey
Participating lenders and housebuilders in Wales
Here’s a brief overview of some mortgage lenders and housebuilders involved with the Help to Buy scheme Wales.
Help to Buy Wales Mortgage lenders
Only certain lenders offer Help to Buy compatible mortgages in Wales. These lenders understand the scheme structure and accept the Welsh Government equity loan. Here are a few examples of popular mainstream options:
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Halifax: Widely used for Help to Buy Wales, Halifax can be fairly flexible compared to other high street lenders. They also offer alternatives like a ‘family boost’ mortgage and a ‘first-time buyer boost’, allowing you to borrow up to 22% more.
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Nationwide: Along with meeting the standard Help to Buy Wales criteria, you’ll also need a solicitor or conveyancer to confirm with Nationwide that the equity loan meets their specific scheme requirements for low-cost ownership.
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HSBC: Although HSBC is open to applicants using the Help to Buy Wales scheme, it tends to be more rigid than some other lenders in its other lending criteria and may apply stricter affordability checks.
Help to Buy Wales housebuilders
Some popular examples of registered housebuilders with acceptable Help to Buy Wales properties include:
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Barratt Homes
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Taylor Wimpey
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Persimmon
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Redrow
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St Modwen Homes
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Lovell Homes
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Castle Green Homes
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Charles Church
-
Bellway Homes
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Candleston Homes
Keep in mind that only specific plots may be classed as Help to Buy Wales properties. So, availability can vary by site, rather than just the overall homebuilder.
What locations are covered?
Help to Buy Wales is available across the whole country, not just major cities. However, common areas people are searching for include:
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Cardiff
-
Newport
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Swansea
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Carmarthen
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Aberystwyth
You may struggle to find Help to Buy Wales homes in rural areas if no new housing developments are being built.
Help to Buy Wales pros and cons
Here’s a brief overview of the main advantages and disadvantages.
Pros
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Buy a home with a 5% deposit
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Smaller mortgage required
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Interest-free equity loan for 5 years
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Available across most of Wales
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Not just open to first-time buyers
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Wide choice of homebuilders
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Helpful if you’re on a low income
Cons
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New-build properties with specific homebuilders only
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£300,000 property price limit
-
Equity loan must be repaid as a percentage of the market value
-
Interest is payable on the equity loan after year 5
-
Limited lender choice compared to standard mortgages
-
Help to Buy advice is usually needed
Alternative mortgage schemes in Wales
If Help to Buy Wales isn’t right for you, there are other options.
Homebuy Wales
Homebuy Wales also helps buyers purchase a property by offering an equity loan used alongside a standard mortgage. It’s typically more suitable for rural areas for people who could not otherwise afford to buy a property.
Other alternatives
Here are a few other homeownership routes you can discuss with your broker:
Why choose Money Helpdesk for your mortgage?
Navigating Help to Buy Wales (and other schemes) can be complex due to the combination of a standard mortgage and an equity loan. Getting the right advice early can make a meaningful difference to the process and how affordable your mortgage is.
We work with experienced, independent brokers who regularly arrange Help to Buy Wales mortgages and understand the practical realities of buying new-build homes throughout Wales.
Here’s why Welsh homebuyers trust us to help arrange the best mortgage possible:
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Independent advisors with Help to Buy Wales experience
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Free initial chat with no obligation to proceed further
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Guidance throughout the mortgage and equity loan process
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Introduction to lenders comfortable with Help to Buy Wales
If you’d like to compare interest rates or have a quick chat with a mortgage broker who has experience with the Help to Buy Wales scheme, you can get started here.
FAQs
Affordability is assessed by your mortgage lender, not the Welsh Government. Lenders’ approaches can vary, and they’ll look at your income, debts, and stress-tested interest rates just like with a regular application (even though part of the purchase is funded by an equity loan).