In April, the Help to Buy (Wales) scheme changes. The maximum price of homes sold under Help to Buy (Wales) will be reduced from £300,000 to £250,000. The equity loan scheme is designed to help first-time buyers and existing homeowners buy new-build properties in Wales with deposits of as little as 5% of the house price. Pure Homes is expecting the town houses and apartments at St Asaph to be snapped up quickly.
Help to Buy (Wales) is an equity loan scheme designed to help first-time buyers and existing homeowners buy new-build properties in Wales, as their only property, with deposits of as little as 5%.
To use the scheme, it must be for a new-build home and have a minimum deposit of 5% saved. The Welsh Government will provide a loan of up to 20% of the property’s value, meaning a mortgage for the remaining 75% (assuming a deposit of 5%).
Here’s an example:
- House price: £200,000
- Deposit (5%): £10,000
- Equity loan (20%): £40,000
- Mortgage (75%): £150,000
This should unlock better rates from lenders. The equity loan provided by the government is interest-free for the first five years.
The new scheme will run until 31 March 2022.