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Help to Buy – Wales

A row of identical affordable two-story houses designed for first time buyers with Help to Buy mortgages.

Help to Buy – Wales: Affordable Homeownership

Purchasing a home is a significant milestone, but it can also be financially daunting. The Help to Buy – Wales scheme aims to ease the burden by offering financial assistance for Welsh homebuyers by providing a shared equity loan. In this comprehensive guide, we’ll delve into the details of this program, eligibility criteria, and how it can benefit you. 🤝💰


Help to Buy - Wales, Shared Equity Loan

Understanding Shared Equity Loans

Shared equity loans are a powerful tool for first-time buyers. Here’s how they work within the context of the Help to Buy – Wales initiative:

      1. Deposit: As a buyer, you’ll need to contribute a 5% deposit toward the purchase price of your new-build home. This initial investment demonstrates your commitment to homeownership. 💪💼

      1. Shared Equity Loan: The heart of the scheme lies in the shared equity loan. The Welsh government provides a loan of up to 20% of the property’s value. This loan is interest-free for the first five years, making it an attractive proposition for those stepping onto the property ladder. 🏠🔑

      1. Mortgage: Alongside the shared equity loan, you’ll secure a repayment mortgage to cover the remaining 75% of the property price. This combination of loan and mortgage allows you to access the housing market with a more manageable financial commitment. 🏦📉


    Crunching the Numbers

    Let’s break down the finances with a practical example:

    Suppose you’ve set your sights on a brand-new home priced at £200,000. Here’s how the numbers stack up:

        • Cash Deposit: You contribute a deposit of £10,000 (5% of the property value).

        • Shared Equity Loan: The Welsh government provides a loan of £40,000 (20% of the purchase price). Remember, this loan is interest-free for the first five years.

        • Your Mortgage: You secure a repayment mortgage for £150,000 (75% of the total cost). 💸💼


      The image features a hand holding a stylus pen, poised as if writing on an invisible surface. Above the hand, the word “Repayment Mortgage” is displayed in bold black letters.

      Help to Buy Wales Eligibility Criteria 2024

      To qualify for the Help to Buy – Wales scheme, consider the following:

        • Property Price: The home you’re eyeing must have a maximum price of £300,000 (effective from 1 April 2023). This ensures that the scheme benefits a wide range of buyers.
        • Registered Builders: Purchase your new-build property from a builder who is registered with the scheme. This ensures that the property meets quality standards and aligns with the program’s objectives.
        • Financing Breakdown: Fund at least 80% of the property price through a combination of your repayment mortgage and the 5% cash deposit. The shared equity loan covers the remaining 20%. 🏘️📊


        A hand placing a small house on top of a stack of coins, with three other stacks each topped with a house, under the word ‘Eligibility’

        Step-by-step guide to Help to Buy Wales scheme

        1. Check Eligibility: Ensure you meet the criteria, about purchasing a home within the set price limit.
        2. Get professional advice: Speak with a mortgage broker to determine the mortgage amount you can comfortably afford and obtain a decision in principle to assess your eligibility.
        3. Find a Property: Look for a new-build home offered by a registered builder participating in the scheme and reserve a property that fits your budget.
        4. Application Process: Complete the Help to Buy – Wales application form with comprehensive details about the scheme’s workings, eligibility, and terms and conditions.
        5. Obtain the Authority to Proceed: If your application is approved, Help to Buy – Wales Ltd grants you the Authority to Proceed (ATP) to purchase your new home. This is valid for 6 months.
        6. Arrange a Mortgage: Save for a 5% deposit. You’ll then receive up to a 20% equity loan from the government, leaving you to secure a 75% mortgage from a bank or building society.
        7. Appointed a Conveyancer: Your conveyancer will handle the legal and administrative aspects of buying the property.
        8. Exchange of Contracts: Once completed, you get the keys to move into your new home.

        Why Choose Help to Buy – Wales?

        The benefits of this scheme extend beyond the financial aspects:

          • Affordability: By reducing the upfront deposit requirement and providing an interest-free loan, the scheme makes homeownership more accessible.
          • New-Build Advantage: The program specifically targets new-build properties. Buying a freshly constructed home means fewer maintenance issues and modern amenities.
          • Staircasing: As your financial situation improves, you can gradually increase your ownership share by “staircasing.” This flexibility allows you to buy additional equity in your home. 📈🏡


          A person in a suit is holding a transparent digital display showing various graphs, data, and the word CONCLUSION


          The Help to Buy – Wales program provides financial assistance, favourable terms, and a pathway to affordable homeownership. If you’re dreaming of a new-build home, explore the shared equity loan option. As a first-time buyer, refer to our 12 Steps for First-Time Home Buyers guide for more information.

          Contact West Wales Money  today to start your journey toward homeownership. We’ll assess your eligibility, find suitable Help to Buy mortgage deals aligned with your needs, recommend lenders, and handle all paperwork. As specialists in Help to Buy – Wales, we ensure a smooth process from start to finish. Remember, a mortgage broker acts as your advocate, simplifying the process and increasing your chances of securing the right Help to Buy mortgage. 🏠🔑

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