The equity loan element of the Help to Buy scheme will be launched in Wales from January of next year, the Welsh minister for housing and regeneration, Carl Sargeant, has confirmed.
The scheme will enable first-time buyers and home movers to purchase a new build up to a value of £300,000 with a 5 per cent deposit of their own and an equity loan of up to 20 per cent of the home value from the Welsh Government.
The announcement was made at Redrow Homes’ Mon Bank development in South Wales. Once completed the development will feature 507 newly built properties.
Managing Director of Redrow Homes South Wales, Stuart Rowlands said: “Help to Buy Wales will provide thousands of individuals and families across the Country with the opportunity to own their own home, and will be a huge positive for the Welsh housing sector. The expected rise in demand will in turn increase the supply of new homes built, which is good news for the Welsh construction jobs and the economy as a whole.”
Nationwide Building Society has confirmed it will be participating in Help to Buy equity loan in Wales from January 2.
Under the scheme in Wales, interest fees will apply from the fifth year after the loan has been taken out, while the equity loan will be accompanied by a £1 monthly administration fee from year one until year five.
Tracie Pearce, head of group mortgages at Nationwide, said: “From January, Nationwide will be accepting mortgage applications for the Help to Buy equity loan scheme in Wales, which is part of efforts to help the mortgage market move forward.
“We are keen to support Nationwide customers in Wales to access great mortgage deals to enable them to move onto or up the housing ladder.”
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