Help to Buy has been operating in England since April, but details of the Welsh version have only just been unveiled. Help to Buy Wales is due to launch in January, with the £170 million scheme giving buyers of new build homes the chance to apply for an equity loan to help cover the cost.
In essence, the scheme will mirror that already seen in England where buyers with a 5% deposit will receive an (initially) interest-free Government loan of up to 20%, but crucially, the value of home eligible for an equity loan will be capped at £300,000 – half that of the scheme in England.
Prospective buyers will be able to apply for a Help to Buy equity loan mortgage through participating house builders in Wales.
Again, the aim of the scheme is to boost demand for new homes to help kick-start the house building market, whilst at the same time helping more first-time buyers get onto the property ladder with a smaller deposit.
It's thought that the investment will help support the purchase of some 5,000 new homes over the next 2 ½ years, although as is the case with the English version, there are calls for it to be closely monitored to ensure house prices don't inflate too steeply.
Get all the information you need about the two parts of the Government's Help to Buy scheme by reading our guides:
Help to Buy: Equity Loan
Help to Buy: Mortgage Guarantee
Need help finding the right mortgage? Use our mortgage calculator.
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