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Help for First Time Buyers in Wales

First-time BuyersMany first-time buyers in Cardiff and Wales find it a struggle to get on the property ladder. Buying a home has become much more difficult in the last two decades, with average house price in Wales increasing from £54,713 to £148,894 since the year 2000.

To get on the property ladder, most first-time buyers will need financial assistance to make a property purchase possible. We’ve summarised some of the Government-backed schemes which can assist a first-time buyer in Wales:

Help to Buy Equity Loan

Those with a small deposit could be eligible for the Help to Buy Scheme. Here’s how it works:

  • you will need a 5% deposit
  • the UK government will lend you up to 20%
  • you need a mortgage of up to 75% for the rest

To be eligible, the property to be purchased must be a new build and have a purchase price of up to £300,000 in Wales.

There will be equity loan fees to pay but not for the first 5 years.

Here’s how to apply for the loan.

Help to Buy ISA

This ISA is suitable for those saving for a deposit. The UK government assists by topping-up your savings by 25% (up to £3,000). When you buy the property, your conveyancer will apply for the extra 25%.

To be eligible, the purchase price cannot be more than £250,000, the property you are buying must be the only home you own and it must be where you intend to live.

Learn more about the help to buy ISA.

Rent to Own – Wales

This scheme supports the purchase of a home for those who do not have sufficient funds for a mortgage deposit. It allows buyers to rent a home which they can later purchase, with the rent subsidising a future mortgage deposit.

To be eligible for the Rent to Own scheme, your household income must be £60,000 or less, you must be able to afford the market rent and the property has to be an eligible home from a participating landlord.

Here’s how to apply.

Shared Ownership – Wales

Shared Ownership – Wales provides support to those wanting to buy a home but who cannot quite afford the purchase of 100% of the home at the full market value. Here’s how it works:

  • you buy a share of the home and pay rent on the remaining share;
  • you can purchase an initial share of between 25% to 75% of the value of the chosen property;
  • you must take out a repayment mortgage for the share of the home purchased; and
  • you can increase your share in the property at any time.

You can participate in the scheme if the household income is £60,000 or less, you must be a first-time buyer and be purchasing a share in an eligible home from a participating landlord.

If you feel this option is suitable, here’s how to apply.

For more information on any of these options, please follow the links to read more as there may be various other factors which can affect eligibility.

When you find it’s the right time to purchase your home, please consult our team of residential conveyancing experts for a quotation. Loosemores is accredited under the Law Society’s Conveyancing Quality Scheme and offers a professional, friendly and personalised conveyancing service.

Please get in touch via:

Phone: 029 2022 4433


1 Comment

  1. First Home Buyers Deposit Scheme
    17th December 2021

    Thanks for sharing this blog. It’s really helpful.

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