TL;DR
Homebuy Wales - key points
Homebuy - Wales supports eligible households with an equity loan for an existing property, but the official guidance says it is not available in all areas and is subject to local eligibility criteria.
The official overview says buyers normally contribute 70% of the purchase price through a mortgage and/or personal savings, with the example equity loan covering 30%.
There are no monthly payments to the housing association under the official overview, but the equity loan must be repaid as the equivalent percentage value when you sell or repay early. If the property value rises, the cash repayment can rise too.
Status: local availability only
Welsh Government guidance says Homebuy - Wales is not available in all areas. Where it is available, local authority or Registered Social Landlord criteria apply, so check local availability before relying on the scheme.
Rules vary by local authority or provider
Rules can vary by local authority, Registered Social Landlord, lender and property. Always check current local criteria before reserving a property or applying.
What is Homebuy Wales?
Homebuy Wales is an equity loan route supported by Welsh Government and delivered locally by councils or registered social landlords. It helps eligible households buy an existing property when they could not otherwise afford to do so.
Unlike shared ownership, the official overview says there are no monthly payments to the housing association. The loan is secured against the property and is repaid later as a percentage of the property value.
How Homebuy Wales works
Find a local scheme
Homebuy is not available in every part of Wales. Local authorities, housing associations and platforms such as Tai Teg publish the areas, budgets and eligibility criteria.
Fund your share
Welsh Government guidance says you will normally need to contribute 70% of the purchase price through a mortgage and/or personal savings.
Use an equity loan for the rest
The official example shows the remaining 30% as an equity loan. If a local provider offers different percentages, treat that as provider-specific and verify it before relying on it.
Repay when you sell or buy out the loan
You repay the loan at the equivalent percentage value of the home when you sell or repay early. A valuation is usually needed at that point.
Who Homebuy is for
Homebuy is aimed at households who cannot afford to buy a suitable home without help and who can show the local authority or Registered Social Landlord that they are not adequately housed or can no longer afford their current home.
- you cannot buy a suitable home without assistance;
- you meet the local authority or Registered Social Landlord housing-need criteria;
- you meet the specific local criteria for the area where the scheme operates;
- you can obtain a mortgage for your contribution;
- you have savings to cover the other costs of buying a home;
- you pass lender affordability assessment where a mortgage is required.
What properties qualify?
Homebuy usually supports existing open-market properties in eligible local areas. The property must be suitable for occupation, suitable for the household and within local price or size limits.
Some schemes may apply to specific communities, rural areas or local authority priorities. A property outside the relevant area or over the local cap is unlikely to qualify.
Deposit, mortgage and equity loan
The official Welsh Government overview says you will normally need to contribute 70% of the purchase price through a mortgage and/or personal savings, and arrange a mortgage from an approved lender.
The official example shows a 30% equity loan. Deposit requirements are lender/local-scheme dependent and are not confirmed as one universal percentage in the official page, so check the lender and local provider before budgeting.
Example Homebuy structure
- Purchase price
- £200,000
- Buyer contribution at 70%
- £140,000
- Equity loan at 30%
- £60,000
- Repayment if value rises to £204,000
- £61,200
The equity loan repayment moves with the agreed percentage of the property value, so the cash amount can rise or fall when the property is valued.
Key risks and limitations
- availability is local and can pause when budgets are limited;
- local connection and housing need rules can be strict;
- if property values rise, the equity loan repayment rises proportionally;
- valuation and legal costs can apply when repaying or selling;
- not every lender is comfortable with Homebuy equity loan structures.
How to apply for Homebuy Wales
- Check whether Homebuy - Wales is available in your local area.
- Read the official Homebuy - Wales buyers guide and the local authority or Registered Social Landlord criteria.
- Contact a participating Registered Social Landlord or local authority for the local application form.
- Check whether you can fund your contribution through an approved lender, savings and purchase-cost funds.
- Arrange a mortgage review before submitting or progressing a full mortgage application.
- Proceed with scheme/provider application, mortgage application, conveyancing and completion only when the local scheme confirms the route.
How Homebuy Wales differs from other schemes
- Homebuy Wales: local-only equity loan support for existing properties, usually with a 70% buyer contribution and 30% equity loan in the official example.
- Help to Buy - Wales: for eligible new-build homes from registered builders, with at least 5% 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 a participating landlord/provider.
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 assess affordability with and without Homebuy support, identify lenders willing to lend alongside the equity loan, prepare the mortgage application and help plan future repayment or remortgage options.
Alternatives if Homebuy is not available
If Homebuy is not available in your area, compare Help to Buy - Wales for eligible new builds, Shared Ownership Wales, or a standard low-deposit mortgage.
Related pages: first-time buyer mortgages, self-employed mortgages and poor credit mortgage advice.
Check whether Homebuy Wales is realistic
If you are considering Homebuy Wales, Extend Finance can help check whether a mortgage is realistic, which documents you need and how the equity loan compares with other routes.
Official resources
Check current local and official guidance before applying: Welsh Government Homebuy - Wales overview, Welsh Government eligibility rules, Welsh Government how to apply and the relevant local authority or Registered Social Landlord.
FAQ
Frequently asked questions
Are Homebuy schemes still running in Wales?
Yes, but Homebuy is local rather than universally available. Welsh Government guidance says it is not available in all areas and, where available, it is subject to local eligibility criteria.
Who can apply for Homebuy Wales?
You need to show that you cannot buy a suitable home without help and meet the specific criteria set by the local authority or Registered Social Landlord operating the scheme. The official eligibility page also says you need to be able to obtain a mortgage for your contribution and have savings for other purchase costs.
How much does the Homebuy equity loan cover?
The official overview says buyers normally contribute 70% of the purchase price through a mortgage and/or personal savings. The Welsh Government example shows the equity loan covering 30%.
Do I need a deposit?
The official page confirms you need mortgage funding and savings for other buying costs, but it does not set one universal deposit percentage. Deposit and affordability requirements depend on the lender and local scheme.
Will every lender lend with Homebuy?
No. Only some lenders are comfortable with Homebuy equity loan structures. A broker can help identify lenders that may support the arrangement.
Can I use Homebuy if I am self-employed?
Potentially yes, if the lender accepts your income evidence and the scheme provider is satisfied with your housing need and eligibility. Self-employed applicants should prepare tax calculations, accounts or bank statements early.
Is gifted deposit allowed?
Many lenders may accept gifted deposits with the right documentation. The scheme provider, solicitor and lender all need to be comfortable with the source and status of the funds.
What if I have bad credit?
Adverse credit can reduce lender choice and make the mortgage harder to arrange. You may need a stronger deposit, cleaner recent credit conduct or more time before applying.
Can a broker handle the Homebuy application process?
A broker can manage the mortgage application and help you understand the lender side of Homebuy. The Homebuy scheme application itself is made through the relevant local authority or Registered Social Landlord, and Extend Finance does not decide eligibility.