A flagship scheme to help homebuyers in Wales has been scrapped only weeks before it was due to start.
Plans to introduce the NewBuy scheme to Wales have been abandoned ahead of the planned launch.
The programme would have allowed potential buyers to have access to high loan-to-value mortgages and supported the building of 3,000 homes. Similarly to the programme in the UK, anyone buying a new build house worth up to £250,000 with a deposit of 5 per cent would have been eligible.
After the Budget unveiled a bigger UK-wide mortgage indemnity scheme, that will include second homes, the Welsh Government says it will redesign the scheme with no new deadline in place.
The Help to Buy scheme, due to launch in January 2014, also offers lenders a 15 per cent guarantee for borrowers with 5 per cent deposits but is available on all homes worth up to £600,000.
Welsh housing and regeneration minister Carl Sargeant said: “Due to the recent announcements made by the UK Government on new housing initiatives as part of the Budget on 20 March, and the detail which is yet to emerge, the Welsh mortgage guarantee scheme, NewBuy Cymru, will not now be taken forward as originally envisaged.
“We are currently working through the detail of the new Help to Buy schemes offered by the UK Government and working closely with our stakeholders to consider opportunities for Wales.”
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