What is the Help to Buy Wales Scheme and How Does it Work?
- RJM Solicitors
- Sep 7
- 2 min read
Buying your first home can feel overwhelming, particularly when it comes to saving a deposit and navigating mortgage options. The Welsh Government’s Help to Buy Wales scheme is designed to make the process easier and more affordable for eligible buyers looking to purchase a new-build home.
How Does the Help to Buy Scheme Work?
The Help to Buy Wales scheme is an equity loan initiative that helps buyers purchase a new-build property with a smaller deposit.
Here’s how it works:
Equity Loan – The Welsh Government lends you up to 20% of the property’s purchase price.
Deposit – You only need to contribute a minimum 5% deposit.
Mortgage – The remaining balance (usually 75%) is covered by a repayment mortgage from a participating lender.
This means that, instead of needing to save a large deposit, you can buy a new-build home with more manageable up-front costs.
Key Points to Know about the Help to Buy Wales Scheme
The scheme is only available on new-build homes from registered builders.
There is a maximum property price cap of £300,000 (as of the current scheme).
The equity loan is interest-free for the first five years. From year six, a low rate of interest becomes payable.
You can repay the loan at any time (for example, when you sell the property or through voluntary part repayments).
Who is Eligible for Help to Buy
To qualify for Help to Buy Wales, you must:
Be purchasing a home as your main residence (not a buy-to-let or second home).
Have the financial ability to obtain a repayment mortgage for your share of the purchase.
Buy a property within the scheme’s price cap.
The scheme is open to both first-time buyers and home movers, provided the property meets the criteria.
How RJM Solicitors Can Help
Purchasing a home with Help to Buy Wales involves additional legal steps compared to a standard purchase, as the equity loan must be properly registered and the lender’s requirements satisfied. Having a solicitor who is familiar with the scheme is essential to ensure a smooth transaction.
At RJM Solicitors, we are proud to be on the panel of solicitors approved to act in Help to Buy Wales transactions. Our experienced property team can guide you through the process, liaise with lenders, and handle all the legal formalities, giving you peace of mind every step of the way.
Thinking about using Help to Buy Wales for your new home?
Contact RJM Solicitors today on 01685 373721 to find out how we can assist you with your purchase and make your move as straightforward as possible.
