TL;DR
Help to Buy Wales - key points
Help to Buy - Wales is a shared equity loan scheme for eligible new-build homes in Wales. You need at least a 5% deposit, with your deposit and repayment mortgage covering at least 80% of the price. The Welsh Government equity loan provides up to 20%.
Official eligibility guidance includes a £300,000 maximum property price, a registered Help to Buy - Wales builder and a first charge repayment mortgage with a qualifying lender.
Applications must be submitted by 31 March 2027. Plan for the £1 monthly management fee from the start, interest after five years and a repayment amount linked to the value of your home.
Applications by 31 March 2027
Help to Buy - Wales is open for applications. Applications must be submitted by 31 March 2027; this is the application deadline, not a stated completion deadline.
Scheme and lender rules both matter
You need an eligible new-build home from a registered builder, scheme approval, a trained conveyancer and a qualifying first charge repayment mortgage. Extend Finance can help with the mortgage side, but does not approve the scheme application.
What is Help to Buy Wales?
Help to Buy - Wales is a shared equity loan scheme for new-build homes in Wales. It helps eligible buyers purchase with a smaller deposit by combining their own deposit, a repayment mortgage and a Welsh Government equity loan.
You own 100% of the legal title, but the government equity loan is secured as a second charge and must be repaid later according to the scheme rules.
Who the scheme is for
Help to Buy - Wales is designed for home buyers purchasing a new-build home as their only home. It can be used by first-time buyers and home movers, subject to the scheme and lender rules.
- the property must be a new-build home in Wales;
- the home must be from a registered Help to Buy - Wales builder;
- the property price must be £300,000 or less under the current official eligibility page;
- you need at least a 5% deposit;
- you need a first charge repayment mortgage from a qualifying lender;
- the home must be your only home, and you must not sublet any part of it.
What properties qualify?
The scheme applies only to eligible new-build homes in Wales. Second-hand homes, investment properties and homes outside Wales are not eligible.
The maximum purchase price is £300,000 and the home must have an Energy Performance Certificate (EPC) rating of B or better. Leasehold houses are excluded; eligible leasehold flats may qualify.
Deposit, mortgage and equity loan
You need at least a 5% deposit. Your deposit and repayment mortgage must together cover at least 80% of the purchase price, with the equity loan funding the remaining share, up to 20%.
The current Phase 3 Extension buyers guide sets the equity loan at 10% to 20% and requires a repayment mortgage of at least 25% of the purchase price. You are not eligible if you can secure a 90% first charge mortgage without scheme support. Both the scheme and lender assess affordability.
Example funding structure
- New-build purchase price
- £250,000
- Buyer deposit at 5%
- £12,500
- Equity loan at 20%
- £50,000
- Repayment mortgage at 75%
- £187,500
If the property value changes before repayment, the equity loan repayment is based on the relevant percentage of the market value, not only the original cash amount.
Fees and interest
Under the current Phase 3 Extension terms, a £1 monthly management fee is payable from the start of the equity loan until it is repaid. No interest is charged for the first five years. From year six, interest starts at 1.75% a year, collected in monthly instalments alongside the management fee.
Later interest-rate increases take place in April. Each increase applies CPI plus 2% to the previous interest rate; CPI is treated as zero if it is negative. This is a percentage increase in the previous rate, not an addition of two percentage points.
Interest is calculated on the original purchase price multiplied by the equity percentage still outstanding, reduced after any partial repayment. It is not calculated on today’s property value, and paying interest does not repay the loan capital. These terms come from the current buyers guide, pages 17–19; if you borrowed under an earlier phase, check your own agreement.
Repaying the equity loan
The equity loan must be repaid when you sell, pay off your first mortgage or reach the end of the equity loan term, normally 25 years. You can also repay it earlier. The amount follows the outstanding equity share of the property value, so it can rise or fall.
On a sale, the scheme uses the higher of the sale price and a Royal Institution of Chartered Surveyors (RICS) valuation. For other repayments, it uses a RICS valuation. A fall in value can reduce the equity repayment, but may still leave you unable to clear your mortgage; do not assume any shortfall is written off.
Under the current guide, your first partial repayment must be at least 10% of the current property value, and any equity share left must be at least 5%. Budget for valuation, legal and any administration costs when repaying or changing the loan.
Key risks and limitations
- if your property increases in value, the equity loan repayment can increase proportionally;
- the management fee starts immediately, and interest becomes payable from year six;
- you must follow restrictions on subletting and occupation;
- repayment, staircasing or remortgage can involve valuation and legal costs;
- the scheme reduces the mortgage required but does not remove normal mortgage risk.
Mortgage risk still applies
Help to Buy - Wales does not guarantee lender approval. The lender still checks income, affordability, credit history, deposit source and property details.
How to apply for Help to Buy Wales
- Read the official Help to Buy - Wales buyers guide and current eligibility page.
- Check mortgage affordability and lender criteria for a qualifying first charge repayment mortgage.
- Find and reserve an eligible new-build property with a registered Help to Buy - Wales builder.
- Find a Help to Buy - Wales trained conveyancer to handle the property purchase.
- Submit the scheme application with the signed reservation form through the official process.
- Wait for the scheme administrator to issue Authority to Proceed before submitting the full mortgage application.
- Complete the mortgage and conveyancing steps, with the required scheme permissions, before exchange and completion.
How Help to Buy Wales differs from other schemes
- Help to Buy - Wales: an equity loan for eligible new-build homes, with at least 5% buyer deposit, up to 20% Welsh Government equity mortgage and a repayment mortgage for the rest.
- Shared Ownership Wales: you buy a 25% to 75% share and pay rent on the share retained by the landlord/provider.
- Homebuy Wales: a local equity loan route usually linked to existing open-market properties and local authority or registered social landlord criteria.
How a mortgage adviser can help
Extend Finance can help with the mortgage side: affordability, lender choice, documents and understanding how the scheme affects the application. We do not decide scheme eligibility, allocate properties or approve the scheme application.
An adviser can check whether your income, deposit and credit profile fit the mortgage side of the scheme, identify participating lenders, prepare the mortgage application and help you plan future equity loan charges and repayment.
Alternatives if Help to Buy Wales is not suitable
If the scheme does not fit your purchase, compare Shared Ownership Wales, Homebuy Wales, a standard low-deposit mortgage or waiting until your affordability or deposit improves.
Related pages: first-time buyer mortgages, self-employed mortgages, poor credit mortgage advice and Shared Ownership England.
Check your Help to Buy Wales options
If you plan to buy a new-build home in Wales, Extend Finance can help assess affordability, deposit, lender criteria and the long-term cost of the equity loan.
Official resources
Check the latest official information before applying: Welsh Government Help to Buy - Wales overview, Welsh Government eligibility rules, Welsh Government how to apply and Help to Buy - Wales buyers guide (Phase 3 Extension).
FAQ
Frequently asked questions
Is Help to Buy Wales still open?
Yes. Applications must be submitted by 31 March 2027. This is an application deadline, not a stated completion deadline; check current scheme and lender criteria before reserving a property.
Can I use Help to Buy Wales as a first-time buyer?
Yes. First-time buyers are a key user group for the scheme, but it can also support eligible home movers. You must still pass lender affordability and credit checks.
What are the main Help to Buy Wales limits?
The home must cost no more than £300,000 and you need at least a 5% deposit. Your deposit and qualifying first charge repayment mortgage must together fund at least 80% of the price, with an equity loan of up to 20% covering the rest.
Do I need a deposit?
Yes. The official structure requires a minimum 5% buyer deposit. Some lenders may require more depending on the case, product, credit profile and property.
What does Help to Buy Wales cost after five years?
Under the current Phase 3 Extension terms, year-six interest starts at 1.75% a year, paid monthly, in addition to the £1 monthly management fee payable from the start. Later April increases apply CPI plus 2% to the previous rate, with negative CPI treated as zero. Interest uses the original purchase price and remaining equity percentage after partial repayments, not today’s value, and does not repay capital. Earlier borrowers should check their own agreement.
Can I use Help to Buy Wales if I am self-employed?
Potentially yes. The scheme itself does not replace lender income checks. Self-employed applicants need acceptable income evidence and must still pass affordability assessment.
Is gifted deposit allowed?
Many lenders may accept gifted deposit, but it must be properly documented and acceptable to the lender and solicitor. You should confirm this before relying on gifted funds.
When and how do I repay the equity loan?
Repayment is due on sale, when your first mortgage is paid off or at the end of the equity loan term, normally 25 years; you can repay earlier. The outstanding equity share tracks property value up or down, using the higher of sale price and RICS valuation on sale, or RICS valuation otherwise. Under the current guide, the first partial repayment must cover at least 10% of current value and leave at least a 5% equity share if the loan is not cleared in full. Allow for valuation, legal and administration costs; a fall in value does not remove mortgage shortfall risk.
Can a broker manage the whole process?
A broker can manage the mortgage application and help coordinate with the developer, lender and solicitor. The Help to Buy - Wales scheme application still follows the official process and administrator requirements, and Extend Finance does not approve scheme eligibility.