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. The usual structure is at least 5% buyer deposit, up to 75% repayment mortgage and up to 20% Welsh Government equity loan.
The equity loan can reduce the mortgage needed, but it does not remove lender affordability checks or long-term risk. If the property value rises, the repayment amount on the equity loan can rise too.
The scheme is active and Welsh Government statistical metadata records a further extension to September 2026. Buyers should still check the latest official guidance, builder eligibility and lender criteria before applying.
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 or main residence. 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 within the current cap;
- you need at least a 5% deposit;
- you need a suitable repayment mortgage from a participating lender;
- the home must not be a buy-to-let or second home.
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.
Current guidance and statistical metadata refer to a £300,000 purchase price cap and energy efficiency requirements. These details can change, so check official Welsh Government guidance before relying on them.
Deposit, mortgage and equity loan
The common Help to Buy - Wales structure is at least 5% buyer deposit, a repayment mortgage for up to 75% of the purchase price and an equity loan for up to 20% from the Welsh Government.
The equity loan is interest-free for the first five years. From year six, charges apply according to the official scheme rules. The loan must normally be repaid when you sell, at the end of the mortgage term, or when the main mortgage is fully repaid.
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.
Key risks and limitations
- if your property increases in value, the equity loan repayment can increase proportionally;
- interest and fees begin after the initial interest-free period;
- 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 a mortgage adviser can help
A mortgage adviser cannot approve the Help to Buy - Wales application or change scheme rules. The scheme administrator and lender make their own decisions.
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 and StatsWales Help to Buy data.
FAQ
Frequently asked questions
Is Help to Buy Wales still open?
Yes. Welsh Government statistical metadata records that the shared equity loan scheme was extended to September 2026. Future budgets and rules can change, so check the latest official guidance before applying.
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.
Do I need a deposit?
Yes. The usual minimum buyer deposit is 5% of the purchase price. Some lenders may require more depending on the case, product, credit profile and property.
Will every lender support Help to Buy Wales?
No. Only certain lenders participate or are comfortable with the scheme structure. A broker can help identify suitable lenders and check their criteria against your situation.
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.
What if I have bad credit?
Adverse credit can make the mortgage side harder, even with an equity loan. You may have fewer lender options, need a stronger deposit or need time to improve your credit profile.
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.