How the Help to Buy Wales Scheme Works for New Build Homes

If you’ve been house-hunting and keep reading that "Help to Buy ended in 2023", that’s only true for England. Help to Buy – Wales is a separate Welsh Government scheme and, as of 2026, it is still open to new applications for new build homes across Wales. It works on broadly the same shared equity principle as the old England scheme — a government loan tops up your deposit so you need a smaller mortgage — but the eligibility rules, price caps and administration are entirely Welsh Government decisions, run through a scheme administrator rather than Homes England.

This matters because a lot of generic advice online is written for an English audience and is simply wrong for Wales. If you’re buying a new build house or flat from a developer building in Wales, you need Welsh-specific figures: the current price cap, the current equity share on offer, and the current repayment terms once the interest-free period ends. This guide sets those out as they stand in 2026, explains who qualifies, and compares the scheme with the alternatives English buyers are now using — Deposit Unlock, Own New Rate Reducer and First Homes — so you can see where Wales still has an advantage.

Crucially, Help to Buy – Wales only applies to new build homes bought from registered builders participating in the scheme — it cannot be used on resale, self-build, or homes bought via other equity or shared ownership products at the same time. It’s aimed specifically at people who can afford the mortgage repayments on a new home but are struggling to find a large enough deposit, which is exactly the gap a shared equity loan is designed to close.

What the Shared Equity Loan Actually Does

Help to Buy – Wales is a shared equity loan, not a grant and not shared ownership. The Welsh Government lends you a percentage of the purchase price of a new build home, interest-free for the first five years. You put down a minimum deposit yourself, and you take out a repayment mortgage for the rest. Between the three of you — your deposit, your mortgage, and the Welsh Government loan — you own 100% of the home from day one. You are not a part-owner paying rent on the remainder, which is the key difference from Shared Ownership.

The typical structure looks like this:

• Your deposit: a minimum of 5% of the full purchase price.
• Welsh Government equity loan: typically up to 20% of the purchase price (the exact percentage on offer can vary by scheme phase — confirm the current figure before reserving a plot).
• Your mortgage: the remaining balance, usually around 75% loan-to-value, arranged with a participating lender.

Because the equity loan reduces the size of mortgage you need, your mortgage-to-value ratio drops — often from the 90–95% you’d need buying unassisted down to roughly 75%. Lower LTV mortgages generally come with better interest rates, so the scheme can reduce your monthly repayments on top of reducing the deposit you need to save.

The equity loan is a genuine stake the government holds in your home, not a fixed cash loan. If your home’s value rises, the amount you owe to repay that percentage rises too — and if it falls, what you owe falls as well. This is the single most misunderstood part of the scheme.

Who Actually Owns the Home

You are the sole legal owner on the title. The Welsh Government takes a second charge over the property (behind your mortgage lender) to secure its loan, in the same way a second mortgage would be secured. You’re responsible for 100% of maintenance, repairs, buildings insurance and service charges from the outset — the government's stake doesn't share those running costs, only the original purchase cost.

Help to Buy Wales Eligibility: Who Qualifies

Eligibility is set by the Welsh Government and checked by the scheme administrator before you reserve a plot. The core tests are:

• New build only: the home must be bought from a homebuilder registered to participate in the scheme, bought as your only and main residence.
• No other property: you must not own, or have owned, another home anywhere in the world at the point of completion. This rules out existing owners buying a second or investment property through the scheme.
• Repayment mortgage required: you must take out a repayment mortgage (not interest-only) for at least the minimum proportion the scheme requires, typically covering a substantial majority of the purchase price alongside your deposit.
• Affordability checks: your mortgage lender assesses affordability as normal, and the combined mortgage plus equity loan must fit within the scheme’s overall lending limits.
• No subletting: the home must be your own residence — you cannot buy under the scheme and let the property out.
• UK residency and right to reside: you’ll need to meet the standard residency and right-to-buy requirements applied by participating lenders and the scheme administrator.

Unlike some English regional variants that were restricted to first-time buyers only, Help to Buy – Wales has at times been open to both first-time buyers and home movers, provided they meet the "no other property owned" rule at completion (i.e. they sell their current home as part of the transaction). Always check the current phase's rules, because first-time-buyer-only restrictions have been applied in some scheme periods.

If you’re weighing this scheme against other routes, it’s worth reading how the Lifetime ISA works for new build deposits, since many Welsh buyers combine a LISA-boosted deposit with a Help to Buy equity loan to reduce their mortgage even further.

Property Price Caps and Eligible New Builds

Help to Buy – Wales applies a maximum purchase price cap, reviewed periodically by the Welsh Government. Historically this cap has sat around £300,000, though it has been adjusted in past scheme phases and should always be confirmed at the point you apply, since caps are one of the figures most likely to change between phases.

Key points on eligible homes:

• The home must be a genuinely new build, bought off-plan or as a newly completed property, from a homebuilder registered with the scheme.
• Houses, bungalows, apartments and maisonettes can all qualify, provided the build and developer meet scheme criteria.
• Park homes, mobile homes, and most self-build projects are excluded.
• Not every development in Wales participates — your developer or sales advisor should confirm upfront whether a specific plot is registered under the scheme, and most advertise it clearly in their marketing.

Because the price cap is a national one rather than regionally varied as it was under England’s scheme, a cap of roughly £300,000 covers most new build starter homes in valleys towns, mid Wales and much of north Wales, but can be restrictive in parts of Cardiff, the Vale of Glamorgan and areas near the English border where new build prices run higher. Before reserving, check how the asking price compares to the cap — extras like optional upgrades and parking spaces can sometimes push a plot over the line.

How the Numbers Work: A Worked Example

Figures below are illustrative, using round numbers to show the mechanics — always get a personalised illustration from a mortgage broker or the scheme administrator before relying on specific amounts.

Say you’re buying a new build terraced house priced at £240,000, within the price cap:

• Deposit (5%): £12,000 — your own savings, gift, or Lifetime ISA funds.
• Welsh Government equity loan (20%): £48,000 — interest-free for 5 years.
• Mortgage (75%): £180,000 — arranged with a participating lender at around 75% loan-to-value.

Without the scheme, buying the same £240,000 home with only a 5% deposit would mean borrowing £228,000 at 95% LTV — a higher-risk mortgage band that typically carries a noticeably higher interest rate, and far fewer lenders willing to offer it. The equity loan effectively buys you a better mortgage deal as well as a lower monthly commitment during the interest-free years.

Remember that the £48,000 equity loan isn’t free money forever. It's interest-free for five years, but it remains a debt secured against your home that must eventually be repaid — as a percentage of the property's value at the time of repayment, not the original cash amount. We cover exactly how that works in the repayment section below.

Interest and Fees After the First Five Years

The equity loan is interest-free for the first five years after legal completion. From year six onwards, you start paying an annual management fee on the outstanding loan amount. This typically begins at a low rate — historically around 1.75% of the loan's original value in year six — and then increases each subsequent year, usually in line with the Consumer Prices Index (CPI) plus a small additional percentage, compounding annually.

What this means in practice:

• Years 1–5: no interest or fee charged on the equity loan, though you must still submit an annual household income check in some scheme phases.
• Year 6: a management fee kicks in, charged monthly, calculated against the original loan amount (not the current market value).
• Year 7 onwards: the fee rises annually, typically tracking CPI inflation plus a set percentage, so the cash cost of holding the loan tends to increase over time even though the percentage share you owe doesn't change.

The fee is charged on the cash amount you originally borrowed, but what you owe if you sell or staircase is a percentage of current market value – these are two separate numbers and it's easy to confuse them.

This fee structure is one of the main reasons many Help to Buy – Wales borrowers plan to repay or "staircase out" of the equity loan well before year six, either through overpayments, remortgaging to release funds, or a planned house move. It's also why the scheme is best suited to buyers confident their income or circumstances will let them manage or pay off the loan within a reasonable horizon, rather than something you want to leave untouched for decades.

If your financial circumstances might change — a career break, a move overseas, or uncertain income — it's worth reading about new build mortgages for expats and non-UK residents before committing, as overseas moves can complicate your ability to manage a secured Welsh Government loan from abroad.

Repaying the Equity Loan: Staircasing and Full Repayment

You can repay the Welsh Government's equity loan in two main ways: partial repayment (often called "staircasing") or full repayment, typically triggered when you sell the home, remortgage, or choose to pay it off early.

How Repayment Is Calculated

This is the part that catches people out: you don't repay the cash amount you originally borrowed. You repay the same percentage share of the property's current market value at the time of repayment. If the Welsh Government lent you 20% of your purchase price, you owe 20% of whatever the home is independently valued at when you come to repay — regardless of whether that's more or less than the original cash amount.

This means the Welsh Government shares both in any gain and any loss in your home's value, proportionate to its stake — which is the "equity" part of shared equity loan.

Partial Staircasing

Many lenders and the scheme administrator allow you to buy back a portion of the equity loan in stages (commonly in minimum increments, such as 10% of the property's value at a time), rather than all at once. Each staircasing payment requires an independent RICS valuation of your home at that point, and reduces both your ongoing exposure and, once you drop below the interest-free threshold period, the fees you'll pay on the remaining share.

Full Repayment on Sale

When you sell the home, the equity loan must be repaid in full from the sale proceeds, again calculated as the agreed percentage of the sale price (or an independent valuation if not sold on the open market, such as a transfer to a family member). The scheme administrator and your solicitor coordinate this as part of the conveyancing process — it's not something you can quietly skip.

• You'll need a RICS valuation (not just an estate agent estimate) for voluntary staircasing or repayment outside a sale.
• Your conveyancing solicitor handles the formal redemption of the second charge, so budget time and a solicitor fee for this step.
• There's no early repayment penalty for paying off the equity loan ahead of schedule, though valuation and legal fees still apply.

Help to Buy Wales vs England's Alternatives

England's Help to Buy equity loan scheme closed to new applicants in 2023, and the market has since shifted toward lender-led and developer-led products. If you're comparing notes with friends or forums based in England, it's worth knowing the products they're likely to mention aren't available in Wales, and vice versa.

The practical upshot: if you're buying a new build in Wales within the price cap, Help to Buy – Wales is usually the most direct equivalent to what English buyers used to have, and in some respects it's more generous — there's no fixed income cap, for example, unlike many First Homes allocations. If your Welsh new build is priced above the cap, or you don't want a government second charge on your title, Shared Ownership or a standard mortgage with a larger deposit (potentially boosted by a Lifetime ISA) become the realistic alternatives.

Don't assume a scheme you've read about applies in Wales just because it's UK-wide in the headlines. Housing policy is devolved, and mortgage/deposit schemes in particular differ significantly between England, Wales, Scotland and Northern Ireland.

How to Apply: Step by Step

Applying for Help to Buy – Wales runs alongside, not instead of, your normal new build purchase process. Here's the typical sequence:

1. Find a participating developer and plot. Confirm with the sales team that the specific development, and the specific plot, is registered under the current Help to Buy – Wales phase, and that the price falls within the cap.
2. Register your interest and reserve the plot. You'll typically pay a reservation fee to the developer, as with any new build purchase, which secures the plot while your application proceeds.
3. Submit your Help to Buy – Wales application. This goes to the scheme's administrator (appointed by the Welsh Government), who checks your eligibility — property ownership history, intended use as main residence, and affordability basics.
4. Arrange your mortgage in principle. You'll need a mortgage offer from a lender participating in the scheme, sized to the remaining balance after your deposit and the equity loan.
5. Receive your Authority to Proceed. Once the administrator approves your application, you get formal authorisation confirming the equity loan amount, which your solicitor and lender need before exchange.
6. Instruct a solicitor experienced with Help to Buy – Wales conveyancing. The transaction involves an extra legal charge (the Welsh Government's second charge) alongside your mortgage, so your solicitor needs to handle both sets of paperwork correctly.
7. Exchange and complete. Funds from your deposit, mortgage and the equity loan are drawn down together at completion, and the Welsh Government's charge is registered against the title.

Timelines can stretch, particularly for off-plan purchases where you're applying months before the home is built. Since Help to Buy – Wales offers have a validity window, keep in regular contact with the developer's sales office about build progress, so your mortgage offer and equity loan approval don't lapse before the home is ready to complete. If you haven't yet worked through what the floor plan and specification actually mean for your offer, it's worth reading how to read a new build floor plan before you reserve a plot first.

Choosing a Mortgage Lender for Help to Buy – Wales

Not every mortgage lender participates in Help to Buy – Wales, and of those that do, not all offer the same product range or rates at the lower LTV band the scheme creates. A broker who regularly places Help to Buy – Wales cases is usually worth the fee, because they'll know which lenders:

• Accept the Welsh Government's second charge structure without additional conditions.
• Offer competitive rates specifically at around 75% LTV, which is where most Help to Buy – Wales mortgages sit.
• Have experience processing new build completions with the extra scheme paperwork, reducing the risk of delays near your target completion date.
• Allow porting or further advances later if you want to staircase and need to adjust your mortgage at the same time.

Fixing Your Rate

Because you'll likely want to review your mortgage around the time the interest-free period on the equity loan ends (year five), many buyers choose an initial fixed rate of two or five years and then reassess — either remortgaging onto a new deal, staircasing to reduce the equity loan, or both at once if your lender allows a related further advance.

Whichever you choose, factor the eventual equity loan fee (from year six) into your long-term budgeting alongside your mortgage repayments, so there are no surprises when the management fee notice arrives.

Pros, Cons and Who the Scheme Suits

Help to Buy – Wales isn't automatically the right route for every buyer, even if you qualify. It's worth weighing the genuine advantages against the long-term commitment before you reserve a plot.

Advantages

• Reduces the deposit you need to find, often to just 5% of the purchase price.
• Access to better mortgage rates through a lower loan-to-value band (typically around 75%).
• Interest-free on the equity loan for the first five years, giving breathing room to build savings or overpay your mortgage.
• No household income cap, unlike some other affordable homeownership products.
• You own 100% of the home outright from day one — no rent payable, unlike Shared Ownership.

Disadvantages and Risks

• The amount you owe is tied to your home's market value, so if local new build prices rise sharply, the cash cost of repaying the loan rises with it.
• From year six, an increasing annual fee applies on top of your mortgage repayments.
• A second charge on your title can complicate or slow down remortgaging and future sales if not handled by an experienced solicitor.
• Restricted to new build homes from participating developers, which narrows your choice of property and location.
• Price caps may exclude larger family homes or properties in higher-value parts of Wales.
• Selling or staircasing requires a RICS valuation and administrator involvement, adding time and cost compared with a standard sale.

The scheme works best for buyers who can comfortably afford the mortgage on their own merit but are short on deposit — not as a way to stretch into a home that would otherwise be unaffordable on an ongoing basis.

If you're still assessing whether a government scheme is the right fit versus simply saving a larger deposit or using family support, it's worth checking how to check which government schemes apply to your new build, since eligibility can sometimes overlap with other local or employer-based routes.

Snagging, Warranties and Protecting Yourself as a New Build Buyer

Because Help to Buy – Wales only applies to new build homes, it's worth pairing your scheme application with the usual new build buyer protections — the equity loan doesn't change your rights or responsibilities as a new homeowner, and the Welsh Government's involvement as a second charge holder doesn't mean they'll help resolve build quality issues.

• Structural warranty: ensure your home comes with an NHBC, LABC, Premier Guarantee or equivalent 10-year new build warranty, independent of the Help to Buy – Wales arrangement.
• New Homes Quality Code: check whether your developer is signed up to the New Homes Quality Board's code, which sets standards for pre-sale information, dispute resolution and aftercare.
• Snagging inspection: arrange a thorough inspection before and shortly after completion — the equity loan funding doesn't give you any additional leverage with the developer over defects, so it's still on you to document and chase issues.
• Consumer Code for Home Builders: most reputable Welsh new build developers will be signed up; it gives you a formal route to raise disputes about marketing claims, reservation agreements and build quality.

If snagging issues come up around damp or condensation in a newly built home, these are common in the first heating season as the building dries out, but it's still worth knowing when damp and condensation are snagging versus normal before raising it with your developer. Similarly, if you're buying on a development that's still being built out in phases, read up on what to expect buying a new build next to an active building site, since construction noise and access disruption can run for years on larger Welsh Government-backed developments.

Frequently Asked Questions

Is Help to Buy – Wales still open in 2026?

As of 2026 the Welsh Government continues to run its own Help to Buy scheme for new build homes, separately from England where the equivalent scheme closed to new applications in 2023. Always check the current phase status with the official scheme administrator or Welsh Government before relying on this, as funding phases can close and reopen.

Can I use Help to Buy – Wales to buy a resale (second-hand) home?

No. The scheme is restricted to new build homes bought from a developer registered to participate in the scheme. It cannot be used for resale properties, self-build projects, or homes bought privately between individuals.

Do I have to be a first-time buyer to use the scheme?

Not necessarily — Help to Buy – Wales has, in various phases, been open to both first-time buyers and existing homeowners moving house, provided you don't own any other property at completion. Some phases have applied tighter restrictions, so check current eligibility rules before assuming you qualify as a home mover.

What happens if my home falls in value?

Because the equity loan is a percentage share rather than a fixed cash amount, the sum you owe to repay it moves with your property's value. If your home's value falls, the amount you need to repay falls proportionately too — though you would still owe your full mortgage balance regardless of value changes, which is a separate risk to consider.

Can I rent out a room or the whole property while using Help to Buy – Wales?

The home must be used as your only and main residence, and subletting the whole property is generally not permitted under the scheme's terms. Renting out a single room under a formal lodger arrangement while you continue to live there may be treated differently – confirm the specific rules with the scheme administrator before doing so, as breaching the terms can trigger early repayment demands.

How is Help to Buy – Wales different from Shared Ownership?

With Help to Buy – Wales you own 100% of the home from day one and pay no rent, with the Welsh Government holding a repayable equity stake instead. With Shared Ownership, you typically buy a smaller share (often 25–75%) of the home and pay rent to a housing association on the remainder, with the option to buy further shares over time (staircasing to full ownership).

Can I combine Help to Buy – Wales with a Lifetime ISA?

Yes, in principle — a Lifetime ISA can be used to help build your minimum 5% deposit, and the government bonus on LISA savings isn't affected by also using the Help to Buy – Wales equity loan, since they address different parts of the purchase (your deposit versus the overall loan-to-value). Check with your mortgage broker that your specific lender treats the two together without issue.

What if my new build completion date is delayed?

Both your mortgage offer and your Help to Buy – Wales authorisation are typically valid only for a set number of months. If your build is delayed, speak to your broker and the scheme administrator well in advance of expiry to arrange an extension or resubmission, rather than waiting until the offer has lapsed.

Next Steps

Before you commit to a reservation fee, it's worth doing some groundwork of your own alongside speaking to the scheme administrator and a broker experienced with Help to Buy – Wales cases.

• Browse current new build developments in Wales to see which schemes are actively marketing plots under Help to Buy – Wales, and compare prices against the current cap.
• Check builder profiles for developers active in Wales, including their warranty provider and Consumer Code membership, before narrowing down a shortlist.
• Search live new build properties for sale within your target price range and area to get a realistic sense of what the price cap buys you in different parts of Wales.
• Use the interactive map to compare locations, commute distances and nearby amenities across Welsh developments side by side.
• Run the numbers with our mortgage and affordability tools to model how a 75% LTV mortgage alongside an equity loan compares with saving a larger deposit unassisted.
• Use compare to weigh specific developments, builders or plots against each other before you reserve.

Finally, get independent financial advice from a broker who regularly places Help to Buy – Wales applications, and instruct a conveyancing solicitor with specific experience of the scheme's second charge paperwork. The mechanics are straightforward once set up correctly, but mistakes in the application or legal stage can cause delays that put your reservation or mortgage offer at risk.