Mortgages in Wales: Help to Buy - Wales, Help to Stay and Land Transaction Tax

Buying a home in Wales works much like buying one anywhere else in the UK: you save a deposit, get a mortgage, and pay tax on the purchase. What differs is the tax itself and the government help on offer. Since 1 April 2018, Welsh property purchases have been charged Land Transaction Tax (LTT) rather than Stamp Duty Land Tax, and LTT has no first-time buyer relief¹. The Welsh Government also runs its own home-buying schemes, separate from anything in England.

The headline scheme is Help to Buy - Wales: an equity loan of up to 20% of the value of a new-build home, interest-free for the first five years, alongside a 5% deposit from you and a repayment mortgage for the rest³. Applications must be submitted by 31 March 2027⁴. Homes cost less on average than in England: the median home sold for £200,000 in Wales in the financial year ending 2024, against £290,000 in England¹.

How buying a home in Wales differs from England

The mortgage itself is the same product on both sides of the border. Lenders are UK-wide, affordability rules are set by the UK regulator, and the choice between a fixed rate, a tracker or the standard variable rate works identically. Official statistics show the typical mortgage advanced in Wales in 2025 was 3.3 times the borrower's income, up from 3.1 the year before, a modest multiple by historical standards⁹.

The differences sit around the mortgage. Property is cheaper: the median sale price in Wales was £200,000 in the financial year ending 2024, compared with £290,000 in England, £185,000 in Scotland and £168,000 in Northern Ireland¹. That lower price feeds directly into the deposit you need and the loan to value you end up on.

Tax is the biggest practical difference. Land Transaction Tax replaced Stamp Duty Land Tax in Wales from 1 April 2018 and is administered by the Welsh Revenue Authority, with its own rates, bands and rules². Unlike England, Wales has no first-time buyer relief, so a first-time buyer pays LTT on exactly the same basis as anyone else buying a main home⁸.

Government help is different too. Help to Buy - Wales is a Welsh Government scheme, run separately from anything in England, with its own price cap, deadline and rules¹⁰. The same is true of the schemes for people who cannot keep up mortgage payments: Help to Stay - Wales has no equivalent south of the border. The broader picture of how money rules differ across the nations is covered in Money in Scotland, Wales and Northern Ireland.

Help to Buy - Wales: up to 20% of a new-build home, capped at £300,000

Help to Buy - Wales is an equity loan from the Welsh Government that you put towards the cost of a newly built home¹². The structure is fixed: you provide a deposit of at least 5%, the Welsh Government lends you between 10% and 20% of the property's value, and you take out a repayment mortgage for the remaining 75% or so³. The loan is interest-free for the first five years³.

There is a hard ceiling on the property price: the home must cost no more than £300,000 and be bought from a builder registered with the scheme⁷. Because the loan is capped at 20% of the purchase price, the maximum equity loan is £60,000⁶.

The scheme has been running a long time. Since it began on 2 January 2014, there have been 15,043 completions under Help to Buy - Wales, including 83 property purchases completed between 1 July and 30 September 2025¹³. The median purchase price paid by scheme buyers in 2024-25 was £260,000¹⁰. The Welsh Government has said the scheme will continue until 31 March 2027, with a recent extension giving up to 400 more households the opportunity to buy a new-build home with a smaller deposit¹⁴.

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

The scheme is deliberately wider than its English counterparts were. 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 so¹¹. The Welsh Government describes its aim as helping people who would not be able to get onto the property ladder without the scheme¹².

The conditions are:

• The home must be your only home¹⁵.
• You must not be renting your existing home and buying a second home through the scheme⁷.
• You must not sub-let any part of the house you are buying through the scheme⁷.
• You must fund at least 80% of the property price through a combination of a repayment mortgage and a minimum deposit of 5%⁷.
• The mortgage must be a first charge repayment mortgage with a qualifying lender⁷.
• The remaining balance must be financed through a mortgage that is not in excess of 4.5 times your household income⁶.
• The home must be a new-build bought through a developer registered with the scheme¹⁶.

Some properties are excluded outright. The scheme is not available on the purchase of houses sold on a leasehold basis¹⁶. The scheme is only available for purchases of new-build homes through a registered developer, so an older property, a self-build or a home from an unregistered builder will not qualify¹⁶.

One requirement catches many buyers out: you must use a solicitor or conveyancer who has undertaken Help to Buy - Wales training. To access a loan, you must instruct a conveyancer who is on the scheme's published list, and the list consists only of conveyancers who have completed the scheme's specific training requirements¹⁷. Inclusion on the list is not an endorsement or recommendation of that conveyancer, and neither Help to Buy Wales nor the Welsh Government accepts any liability for financial loss arising from the use of the list¹⁷.

Fees, interest and repaying the Help to Buy - Wales loan

The defining feature of the loan is that it is interest-free for the first five years³. Repay the entire loan within those five years and you pay zero interest³. From year 6, you pay a monthly interest fee of 1.75% of the equity mortgage⁵. That fee is charged on the loan, not on the value of the home, and it does not reduce what you owe: the loan itself is repaid separately.

What you repay depends on what the home is worth when you repay it. The terms of the shared equity mortgage confirm the repayment amount is calculated as a proportion of either the current market value, established by an independent RICS valuation, or the sale price of the property, whichever is higher¹². If you received 20% of the initial purchase price, you pay back 20% of that value.

The scheme's own worked example shows how this behaves. A buyer purchases a home for £200,000: a £40,000 equity mortgage (20%), a £150,000 mortgage from a participating lender (75%) and a £10,000 deposit. The home later rises in value to £250,000. The equity mortgage is now 20% of £250,000, so £50,000; the buyer's remaining mortgage balance is £125,000 and their own equity is £75,000¹². The loan rises with the home, and it would also fall if the home lost value.

You do not have to wait until you sell. You can pay off at least 10% of your home's current value, or pay the full amount in one go³. Because the repayment is a percentage of value, part repayments reduce the Welsh Government's share rather than clearing a fixed cash debt.

Living with a Help to Buy - Wales loan: remortgaging, alterations and letting

The equity loan sits as a second charge behind your mortgage, and that shapes what you can do with the property. 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 to do so¹⁵. Further borrowing on the mortgage is only allowed for permitted purposes, such as repaying the equity loan, structural alterations on medical grounds, or a transfer of equity¹⁵. Borrowing against the home for other reasons, such as consolidating debts, is not permitted while the equity loan is in place.

Structural alterations generally require the scheme's consent, and the scheme's guidance works through the arithmetic. In one example, a property was valued at £100,000 at the time of purchase with a 20% equity mortgage, and the customers' original mortgage was £75,000¹⁸. Any change that alters the value of the home changes what the equity loan is worth, which is why the scheme keeps track of alterations.

If ownership changes, for example through a separation or a partner joining the mortgage, a new mortgage offer from a qualifying lending institution registered with the scheme is needed, and a new equity mortgage is entered into¹⁸. The rules on joint mortgages and separation apply as usual, but the scheme has to approve the new arrangement.

Letting is restricted. You must not sub-let any part of the house you are buying through the scheme⁷, so taking in a lodger or letting the whole home is off the table without permission. The dedicated guide to remortgaging and repaying a Help to Buy equity loan covers the mechanics in more detail.

Shared Ownership, Homebuy and Rent to Own in Wales

Help to Buy - Wales is not the only route to ownership with help from the Welsh Government, which states that through its home ownership schemes it provides financial assistance to help people in Wales own their own homes¹⁹.

Shared Ownership - Wales lets you buy an initial share of 25% to 75% of a property, with rent paid on the remaining share to a housing association¹⁹. To be eligible you must be a first-time buyer, or a newly forming household, or relocating for work purposes to an area where property prices do not allow you to buy a home suitable for your family size, and you must be buying a share in an eligible home from a participating landlord²⁰. The costs are lower than a full purchase: excluding your mortgage deposit and Land Transaction Tax, you will likely need at least an average of £2,500 of savings to cover the costs of buying²¹. In the scheme's financial illustration, the mortgage requirement on a typical share is £54,000²¹. How the part-buy, part-rent structure works is covered in shared ownership mortgages.

Homebuy - Wales is an equity loan of between 30% and 50% for those who meet specific criteria, and unlike Help to Buy it assists the purchase of an existing property, not just a new-build¹⁹. In the scheme's example, a £200,000 purchase is split into a £140,000 contribution from the buyer (70%) and a £60,000 equity loan (30%)²². You will need to arrange a mortgage from an approved lender²². The exclusions are broad: properties containing any element of commercial use, caravans, houseboats and other mobile homes, properties offered at a discount by a housing association, local authority or other public body, and property owned or part-owned by your spouse, partner, family member or business associate do not qualify²³.

Rent to Own - Wales supports the purchase of a home for those who do not have sufficient funds for a mortgage deposit²⁴. You rent a home from a participating landlord for a set period, with part of the rent going towards a deposit, and then buy it. To explore it, you contact a participating landlord in your local area²⁵.

Land Transaction Tax: how it works and when it is due

Land Transaction Tax replaced Stamp Duty Land Tax on residential and non-residential property and land interests in Wales from 1 April 2018². It is charged in bands on the purchase price, like its English counterpart, but the bands and rates are set by the Welsh Government and have changed over time, with rate changes effective from 22 December 2020 affecting non-residential and higher-rates residential transactions²⁶.

The starting band is generous: the 0% rate band runs up to £225,000⁸. Guidance documents differ on the threshold for the main residential rates, with figures of £225,000 and £180,000 both appearing in official material, so the figure for a specific purchase should be confirmed with the Welsh Revenue Authority or your conveyancer at the time. What is not in doubt is that Wales has no first-time buyer relief: such a relief applied under the predecessor tax, but not to Land Transaction Tax²⁷.

The process is handled by your conveyancer in almost all cases. The key rules are:

• All land transactions in Wales with a value above £40,000 must be notified to the Welsh Revenue Authority²⁶.
• When filing an LTT return, the organisation paying the return has 30 days after the effective date to submit and pay the tax².
• Certain lease transactions are not notifiable if they are less than 7 years in duration²⁶.

Higher LTT rates on second homes and how to reclaim them

If you buy a second home or a buy-to-let property in Wales, higher residential rates of LTT apply on top of the main rates. The top band is steep: transactions on dwellings costing £1.5 million or more are charged at 17% under the higher residential rates, a rate effective from 11 December 2024²⁸. Published figures for the lower higher-rate bands vary between official documents, with figures of 12.5% and 15%, and of 5% and 8.5%, appearing in different guidance, so the exact rate for a specific band should be checked with the Welsh Revenue Authority before relying on it.

The main relief from the higher rates is for people who are moving home. If you buy a new main residence before selling your old one, the higher rates apply initially, but the taxpayer has up to three years to sell their previous main residence and claim a refund²⁶. The timing is strict: the return for the acquisition of the new main residence must be made after the sale of the old main residence has occurred, and cannot be made in anticipation of the subsequent sale²⁹.

A further refund rule has been introduced for private landlords: where a landlord buys a dwelling and then leases it to a local authority in Wales through Leasing Scheme Wales, a refund of the higher residential rates can be claimed, and the main residential rates of LTT continue to apply³⁰.

Help to Stay - Wales for homeowners struggling with mortgage payments

Help to Stay - Wales offers financial support to eligible Welsh homeowners who are struggling to pay their existing mortgage or are at risk of falling behind³¹. You may qualify if your household is already missing payments or building up arrears, or is at risk of missing payments soon, for example because of a change in circumstances such as an increase in your mortgage rate or loss of income³¹.

The support has two parts: free financial advice, and a shared equity loan that reduces your monthly mortgage payments to a more affordable level³². The purpose is to help you remain in your home while you work through your financial difficulties, reducing the risk of repossession or homelessness³¹. The scheme aims to work alongside the support offered by your mortgage lender and in line with the UK Mortgage Charter.

The eligibility conditions are:

• Your property must be in Wales³¹.
• Your total household income, the combined gross income of everyone living in your home, must be £67,000 per year or less³². Guidance also states the property must be valued at less than £300,000³².
• Each person named on the mortgage must complete their own or joint debt advice session³².

The shared equity loan is not free money: interest is charged. The scheme's own example shows the arithmetic: a £50,000 loan at a total rate of 7.25% (with the base rate at 5.25%) costs £302.08 per month in interest³². If you later remortgage your property with a different lender, a Deed of Postponement will be required to confirm the scheme's charge remains in second place behind your new lender³².

To apply, you complete and submit the Help to Stay - Wales application form after reading the guidance for applicants, and all the registered owners of your home must sign the application form³¹. The scheme is supported in its delivery by the Development Bank of Wales³². The detail is in the dedicated guide to Help to Stay Wales.

Missing payments on a Help to Buy - Wales loan and where to get help

From year 6, the 1.75% interest fee on a Help to Buy - Wales equity loan is a bill like any other, and the scheme treats missed payments as arrears. Arrears are defined as outstanding management fees, outstanding interest payments, and any other outstanding amounts relating to charges or interest payments³³. If you are going to miss a payment, the consequence is that you will need to pay it back when you come to repay your equity mortgage³⁴.

The scheme sets out how it handles accounts that fall behind. Customers whose accounts go into arrears are given information about the arrears before any attempt is made to recover them, and a reasonable amount of time to make good the arrears. Before pursuing a customer, the scheme takes reasonable steps to verify the data relating to the account, so it only pursues the verified customer and for the correct amount. Where a customer is in arrears, steps are taken to understand their financial circumstances and determine a suitable arrears management plan, with a range of tools available, and customers experiencing financial difficulties are referred to a source of free and independent debt advice³³. The scheme states that although only some of the accounts under the scheme are FCA-regulated, non-regulated accounts are treated with equivalent standards to regulated ones³³.

The escalation is time-limited. A Default Notice is issued 180 days after an equity mortgage goes into arrears where there has been no engagement or co-operation from the customer, or where the customer has not satisfied any arrears management agreement made. The Default Notice provides 28 days' notice to make good the arrears³³. The scheme states that the overriding objective of arrears management is to help customers get back on track with their repayments³³.

Help with the underlying mortgage is available too. Help to Buy - Wales works closely with the debt advice agency PayPlan, but you can use any free debt advice agency³⁴. The MoneyHelper information sheet "Problems paying your mortgage" is available on the MoneyHelper website, and copies can also be obtained by calling 0800 138 7777³⁵. The steps to take when payments become unaffordable are covered in mortgage arrears and in the debt guide.

If you feel the scheme has treated you unfairly, you can let it know: the scheme publishes its treating customers fairly commitments and a complaints process, and Help to Buy Wales Ltd manages the scheme on behalf of the Welsh Government³⁶. The scheme also recognises that any consumer can become vulnerable at any time, for example through serious illness, bereavement or loss of income, and that particularly vulnerable customers include those who might not have the mental capacity to make financial decisions; its stated objective is to give vulnerable customers the same access to products and services as everyone else³⁷.