Help to Buy is changing!
From 1st April 2021, the Help to Buy Wales scheme is changing, with a lower price cap of £250,000 being introduced.
Until this date, new build homes up to the value of £300,000 can benefit from the scheme. To take advantage of the current scheme, you will need to have reserved your new Lovell home by 31st March 2021 and legally completed on your home by the end of December 2021.
How does the scheme work?
The Help to Buy Wales scheme is backed by the Welsh Government and is designed to make buying your own home easier, with the help of a shared equity loan.
The scheme is available on new build properties up to £300,000 (£250,000 from 1st April 2021), as long as they’ll be used as your main home. You’ll need a 5% deposit to secure your home. The government will provide up to 20% of the value of the property in an equity loan, meaning you only need a 75% mortgage from a bank or building society.
The maximum amount you can borrow with the shared equity loan with Help to Buy Wales is £60,000, and there is no minimum amount.
The equity loan can be repaid at any time and will be interest-free for the first five years. After that, interest will be charged at 1.75% of the equity loan, rising annually by Retail Prices Index plus 1%.
The loan is repayable after 25 years, or on the sale of your property if that happens first. The total amount repaid by you will be the percentage of the market value of your home that was funded by the shared equity loan, as well as interest and charges.
You can find out more about Help to Buy - Wales (as well as view the full terms and conditions) by visiting the Lovell website.