Help to Buy - Wales: the shared equity loan for new build homes

Help to Buy - Wales is a shared equity loan from the Welsh Government that helps you buy a newly built home in Wales. It lends you up to 20% of the property's value, so you need only a 5% deposit and a repayment mortgage for the remaining 75%¹. The loan is interest-free for the first five years, and you repay it as a share of your home's value rather than the amount you borrowed¹.

Applications must be submitted by 31 March 2027, when the scheme closes to new buyers². Since it began on 2 January 2014, there have been 15,043 completions under the scheme³, and the Welsh Government says it has helped more than 14,000 households achieve homeownership⁴.

Help to Buy - Wales closes to applications on 31 March 2027

The scheme has been extended several times, and its end date has moved more than once, so it is worth checking the current position before making plans. In December 2024 the decision was made to extend the scheme to September 2026⁷, and in July 2026 the Welsh Government confirmed that Help to Buy - Wales will continue until 31 March 2027, giving up to 400 more households the opportunity to purchase a new build home with a smaller deposit⁴. Applications must be submitted by that date².

The July 2026 announcement also confirmed that the Help to Stay - Wales scheme, which supports existing homeowners struggling with their mortgage, will run until the same date⁴. The extension provides certainty to the 50 developers and SMEs registered with Help to Buy Wales, and the Welsh Government will continue to work with UK Finance, the Home Builders Federation, the Federation of Master Builders and the Development Bank of Wales to deliver it⁴.

If you already have a Help to Buy - Wales equity loan, the closing date does not affect you. The loan continues on its existing terms, and the sections below on interest, repayment and permissions apply for as long as you hold it.

How the shared equity loan works: up to 20% of a new build's value

Help to Buy - Wales is a shared equity loan scheme for homes up to £300,000, available from 1 April 2023 for first-time buyers and home movers⁸. The Welsh Government provides an equity loan of up to 20% of the value of the new build property¹, which you put towards the cost of buying a newly built home⁹. You then take out a first charge repayment mortgage with a qualifying lender for the remaining 75%, and provide a deposit of at least 5%¹.

The scheme's own figures show how buyers actually use it. In the quarter from 1 July to 30 September 2025, the mean property purchase price using the scheme was £264,335, with a mean equity loan value of £53,000³. Since the scheme was introduced, around two thirds (64%) of all recipients have provided the minimum 5% deposit¹⁰. The equity loan must be repaid within 25 years¹¹.

The loan is not free money, and it is not a gift. It is a mortgage secured on your home, called an Equity Mortgage, and the amount you repay is linked to the value of your home at the point of repayment, not the amount you originally borrowed⁹. If your home rises in value, you repay more; if it falls, you repay less. The scheme's purpose is to support people who would not be able to get onto the property ladder without it⁹.

Help to Buy, Wales is a Welsh Government scheme that provides a shared equity loan to buyers of new-build homes², with the Development Bank of Wales supporting delivery². Over 60 builders and over 20 lenders participate¹¹.

Who can use Help to Buy - Wales and which homes qualify

The scheme is open to anyone living in Wales: individuals, couples and families¹. Support is available to all home buyers, not just first-time buyers, who wish to purchase a new home but may be constrained in doing so⁷. In practice, first-time buyers dominate: 77% (11,340) of all completed purchases since the scheme's introduction were made by first-time buyers¹⁰, and 84% of purchases in 2023-24 were by first-time buyers⁷.

The conditions you must meet are:

• You must be buying an eligible home with a maximum price of £300,000 from a builder who is registered with the scheme⁵.
• You must be able to fund at least 80% of the property price through a combination of a repayment mortgage and a minimum deposit of 5% of the purchase price⁵.
• You must take out a first charge repayment mortgage with a qualifying lender⁵.
• The home you purchase must be your only home⁶.
• You must not be renting your existing home and buying a second home through the scheme⁵.
• You must not sublet any part of the house you are buying through the scheme⁵.

The scheme is only available for purchases of new build homes through a developer registered with it¹². Only developers and builders with a Home Builders Federation star rating of 4 stars and above are permitted to be part of the scheme⁶. Homes sold through the scheme must also meet a minimum of EPC B for energy performance¹¹.

There are restrictions on the type of home. The scheme is not available on the purchase of houses sold on a leasehold basis, though purchases of flats sold on a leasehold basis may still be possible¹². For leasehold properties in the third phase of the scheme, which began in April 2021, future ground rents are restricted to zero⁷.

If you are not eligible, or the scheme does not suit, other Welsh schemes exist. Homebuy - Wales provides an equity loan of between 30% and 50% of the property value for those who meet specific criteria to buy a property, including existing homes⁸, and Rent to Own - Wales supports the purchase of a home for those who do not have sufficient funds for a mortgage deposit⁸. The site's guide to shared ownership, Homebuy and Rent to Own in Wales covers these in detail, and there is a comparison of Shared Ownership and Help to Buy - Wales.

Price cap: new builds up to £300,000

The maximum purchase price for an eligible property under the scheme is £300,000⁶. The cap has changed over the life of the scheme, which is why some older sources give different figures. From 1 April 2021 the purchase price cap was decreased from £300,000 to £250,000⁷, and the December 2022 extension saw the purchase price cap rising back to £300,000¹¹.

The price bands buyers actually use show where the cap bites. In 2023-24, 247 properties (47.6% of completed purchases) were in the £250,001 to £300,000 band, and 43 (8.3%) were in the £175,001 to £200,000 band⁷.

For context, the average property value in Wales was £215,000 in July 2026, an annual increase of 2.6%¹³. Most new builds sold through the scheme sit above that average, which reflects the fact that the loan is used for newly built homes rather than the wider market.

What it costs: nothing for five years, then interest from year 6

The equity loan is interest-free for the first five years¹. You pay no interest on the loan during that period, which reduces financial pressure while you settle into your new home¹. If you pay back your entire loan within the first five years, you pay zero interest¹.

From year 6, you begin to pay interest⁹. The scheme's buyers' guide sets out how this works: you pay a monthly interest fee of 1.75% of the Equity Mortgage from year 6⁶. On a £40,000 Equity Mortgage, that is £58.33 interest every month in year 6, worked out as (£40,000 x 1.75%) divided by 12⁶.

After year 6, the interest rate rises each year in line with inflation, measured by the Consumer Prices Index (CPI), plus 2%. In the scheme's worked example, which assumes CPI at 2.5%, the rate is 1.83% in year 7 and 1.91% in year 8⁶.

Interest is not the only ongoing cost. The scheme charges a monthly management fee, and if you miss a payment you will need to pay it back when you come to repay your Equity Mortgage¹⁴. The scheme's fees and interest do not classify as rent, so they do not qualify for housing benefit¹².

The interest you pay is on the equity loan only, and it does not reduce the amount you owe. The loan itself is repaid separately, as a share of your home's value, as the next section explains. The site's guide to when interest starts on a Help to Buy equity loan covers the mechanics in more detail.

Repaying the loan: a share of the home's value, not the amount borrowed

The single most important thing to understand about the equity loan is that the total amount you repay is linked to the value of your home at the point of repayment, and not the amount you originally borrowed⁹. The terms of the shared equity mortgage confirm that the repayment amount is calculated as a proportion of either the current market value established via an independent RICS valuation, or the sale price of your property, whichever is higher⁹.

The scheme's rules make this concrete. If you received 20% of the initial purchase price, the amount you will have to pay back will be 20% of either the current market value or the sale price, whichever is higher¹⁵. So if your home has risen in value, the Repayment Sum rises; if it falls, it falls¹⁵.

You can repay in two ways: paying off at least 10% of your home's current value, or paying the full amount in one go¹. If making a partial repayment, your first partial repayment will need to be at least 10% of the market value of your home at that time⁶. The amount you repay is based on the current market value of the home at the time you choose to repay, and the percentage you want to repay¹⁵.

When you repay, the market value must be established by a RICS registered valuer with experience in residential valuations in the region. The valuer must confirm the market value, provide three comparable properties and sale prices within the last six months within a five mile radius of the postcode area (or the best available), not be related or known to you nor connected to the estate agent, inspect the interior and provide a full valuation report with the inspection date. Valuations for bank or mortgage purposes are not acceptable¹⁵. The market value assumes the property is in good repair and good condition, well maintained and decorated, the garden is properly maintained, integral kitchen appliances are in good mechanical order, the covenants in the Equity Mortgage have been fully complied with, and the property will be vacant upon completion of any disposal¹⁵.

The equity loan must be repaid within 25 years¹¹. The site's guide to repaying your Help to Buy Wales equity loan early covers the process step by step.

Remortgaging, extra borrowing and alterations need permission

Because the equity loan is secured on your home, anything that changes the mortgage or the property itself needs the scheme's consent. The rules treat switching lenders and further borrowing as things that only happen with permission, and only for permitted purposes⁶.

Switching mortgage deal with your current lender. If you choose to switch lenders to get a better deal on your repayment mortgage, either with your current or a new lender, you need permission, and further borrowing is only considered for permitted purposes such as repaying the equity loan, structural alterations on medical grounds, or a Transfer of Equity⁶.

Switching to a new lender. You need the scheme's permission to switch lenders⁶. Additional borrowing alongside the switch is not permitted unless you are partially repaying the Equity Mortgage, and any additional borrowing is limited to the redemption amount¹².

Extra borrowing. Additional borrowing is not permitted unless you are partially repaying the Equity Mortgage, and the additional borrowing is limited to the redemption amount¹². The only permitted purposes for further borrowing include repaying the equity loan, structural alterations on medical grounds, or a Transfer of Equity⁶.

Alterations. Consent is only given for significant home improvements in exceptional circumstances¹², and structural alterations are only permitted on medical grounds⁶. Unpermitted alterations that increase the value of the property increase the amount you owe⁶.

Subletting. The scheme's permission rules extend to how you use the property: consent is only given for significant changes in exceptional circumstances¹². The site's guide to subletting a home bought with an equity loan covers this in detail.

Leasehold houses. Changes affecting the property or its ownership, including anything relating to a leasehold house, fall under the same permission rules: consent is only given for significant home improvements in exceptional circumstances¹², and structural alterations are only permitted on medical grounds⁶.

How to apply through a registered builder and a trained conveyancer

Applications are made through the scheme's own process, and there are two requirements that catch buyers out: the builder must be registered with the scheme, and the conveyancer must be trained.

The steps are:

1. Check you meet the eligibility conditions, including the £300,000 price cap and the 5% minimum deposit⁵.
2. Find a new build home from a builder registered with the scheme⁵. Over 60 builders participate¹¹.
3. Reserve the property. The reservation fee is fully refundable if you are not eligible for an Equity Mortgage or you do not exchange contracts⁶.
4. Instruct a conveyancer from the scheme's List. Customers must instruct a conveyancer who is listed on the scheme's website, and applicants must use a solicitor or conveyancer who has undertaken Help to Buy - Wales training¹⁶. The List consists of conveyancers who have completed the scheme's specific training requirements¹⁶.
5. Take out a first charge repayment mortgage with a qualifying lender⁵. Over 20 lenders participate¹¹.
6. Submit the application before the 31 March 2027 deadline².

Neither Help to Buy Wales nor the Welsh Government accepts any liability for financial loss or damage arising from the use of the List or any of the conveyancers included on it¹⁶, so the choice of conveyancer remains yours. The site's guide to solicitors and conveyancers explains the difference, and conveyancing covers the legal work involved.

If something goes wrong, you can complain to Help to Buy - Wales over the phone or in writing in an email or letter, about the scheme or about someone who works for it, and someone else can complain on your behalf². Concerns can also be raised confidentially with the Development Bank of Wales by contacting their General Counsel².

If you fall behind on payments: arrears, default notices and where to get help

Arrears on a Help to Buy - Wales loan are outstanding management fees, outstanding interest payments, and any other outstanding amounts relating to charges or interest¹⁷. If you miss a payment, you will need to pay it back when you come to repay your Equity Mortgage¹⁴.

The scheme has a published arrears policy, and its overriding objective is to help customers get back on track with their repayments¹⁷. The policy sets out what happens in sequence:

• Notification: customers whose accounts go into arrears will be given information about the arrears before any attempts are made to recover them, and a reasonable amount of time to make good the arrears¹⁷.
• Assessment: the scheme will take steps to understand a customer's financial circumstances to determine a suitable arrears management plan¹⁷.
• Arrears management tools: a range of suitable tools will be made available to address the various repayment issues customers face¹⁷.
• Verification: before pursuing a customer, the scheme will take reasonable steps to verify the accuracy and adequacy of the data relating to the account, so it only pursues the verified customer and for the correct amount¹⁷.
• Signposting: customers in financial difficulty will be referred to a source of free and independent debt advice¹⁷.

A Default Notice will be issued 180 days after an Equity Mortgage goes into arrears where there has been no engagement or co-operation from the customer, or the customer has not satisfied any arrears management agreements made. The Default Notice provides 28 days' notice to make good the arrears¹⁷.

Although only some of the accounts under the scheme are FCA-regulated, the scheme states that non-regulated accounts will be treated with equivalent standards to FCA-regulated accounts, and customers will be treated in accordance with the principles of Treating Customers Fairly, with due consideration given to forbearance and breathing space as appropriate¹⁷. The scheme also has a vulnerable customers policy: its overriding objective is to provide vulnerable customers with the same access to products and services as is available to all customers¹⁸. Any consumer can become vulnerable at any time, for example through serious illness, bereavement or loss of income, and "particularly" vulnerable customers are those who might not have the mental capacity to make financial decisions¹⁸. If you feel you have been treated unfairly, you can let the scheme know¹⁹.

Help to Buy - Wales works closely with the debt advice agency PayPlan, but you can use any free debt advice agency¹⁴. If you are struggling to pay your mortgage more widely, the Help to Stay - Wales scheme offers free financial advice and a shared equity loan to eligible Welsh homeowners who are struggling to pay, or are at risk of falling behind with, their mortgage²⁰. The scheme is delivered subject to the funding available²⁰. The site's guide to debt help lists free sources of advice.

Selling, and what happens if the owner dies

When you sell your home, the equity loan is repaid as part of the process. The amount you repay is based on either the market value of your property or the sale price, whichever is the higher¹⁵. Because the repayment is a percentage of that figure, a home that has risen in value means a larger repayment, and one that has fallen in value means a smaller one¹⁵.

Because the repayment is a percentage of value, it moves with the market. The scheme's own example shows a property bought for £200,000 with a £40,000 (20%) equity mortgage: if the property value falls 5% a year and you sell at the start of year 6, you would need to repay £30,951, which is 20% of the sale price⁶. The loan falls with the value, which is the flip side of it rising when the value rises.

If the owner dies, the scheme's rules distinguish between joint and sole ownership. Where you bought with someone else, the deceased person's interest in the property will either be transferred to the surviving co-owner or will pass under the terms of their will. If you bought your home on your own and you die, it will be managed through your estate under the terms of your will, if you have made one¹².

The site's guides to selling a shared ownership home and negative equity cover related situations, and buying a home in Wales explains the wider purchase process, including Land Transaction Tax, Wales's equivalent of Stamp Duty.