TL;DR
Homebuy Wales - key points
Homebuy Wales supports eligible households by providing an equity loan to help buy an existing property on the open market. It is not available everywhere and depends on local criteria.
A common model is that the buyer funds around 70% of the purchase price through mortgage and savings, while a local authority or housing association provides the remaining 30% as an equity loan.
The loan is usually interest-free, but it must be repaid as a percentage of the home value when you sell or repay early. If the property value rises, the cash amount to repay can rise too.
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, you do not normally pay rent on the equity loan. 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
You normally fund a large share of the purchase price, often around 70%, using a repayment mortgage and savings or deposit.
Use an equity loan for the rest
The local authority or registered social landlord provides the remaining share as an equity loan. In some circumstances the loan may be higher, depending on scheme rules.
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 have a housing need. Local connection is usually important.
- you cannot buy a suitable home without assistance;
- you have a housing need, such as overcrowding or needing to move for work;
- you have a local connection to the council or scheme area;
- you can obtain a mortgage for your contribution;
- you have savings for deposit, legal work, survey and purchase costs.
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
Many schemes expect the buyer to fund up to 70% of the property price using a combination of mortgage and savings. A minimum deposit of 5% may be required, subject to lender rules.
The remaining 30% is typically provided as an equity loan. In certain circumstances, some schemes may allow the equity loan to increase to 50%.
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 a mortgage adviser can help
A mortgage adviser cannot allocate a Homebuy place or override local authority decisions. The scheme provider decides whether you qualify.
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 and Tai Teg schemes.
FAQ
Frequently asked questions
Are Homebuy schemes still running in Wales?
Yes, but Homebuy is local rather than universally available. Some areas may have active schemes while others may pause registration when funding is limited. Always check the relevant council, housing association or Tai Teg information.
Who can apply for Homebuy Wales?
You usually need to show that you cannot buy a suitable home without help, have a housing need and have a local connection to the area. Each scheme sets its own detailed criteria.
Do I need a deposit?
Most schemes expect you to have a deposit and savings for purchase costs. A 5% deposit may be required, but lender and scheme rules can vary.
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 liaise with solicitors and scheme contacts where appropriate. The Homebuy scheme application itself is made through the relevant council, housing association or platform.