Help to Buy Mortgages: Wales Equity Loan Scheme and UK Alternatives
Updated 09 April 2026
Help to Buy was one of the most widely used government-backed homeownership schemes in the UK. The equity loan programmes in England and Scotland have now closed, but Help to Buy Wales remains open for applications until September 2026. This guide explains how the Welsh scheme works, what lenders look for when you apply for a mortgage alongside an equity loan, and what alternatives are available if you are buying in England or Scotland.
Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
For a free initial consultation, call 01202 155992 or contact Mortgage One
Where Help to Buy Stands Across the UK
Help to Buy operated differently in each nation of the UK, and all three programmes have followed separate timelines.
Help to Buy England closed to new applications in October 2022, with all completions required by 31 March 2023. The scheme had already been restricted to first-time buyers from April 2021 and was subject to regional property price caps. No replacement equity loan scheme has been introduced in England.
Help to Buy Scotland stopped accepting new applications in 2021. The Scottish Government has since focused housing support on other routes, including the open market shared equity scheme and the First Home Fund's successors.
Help to Buy Wales is the only remaining equity loan scheme in the UK. In December 2024, the Welsh Government confirmed an 18-month extension, keeping the scheme open for applications submitted by 30 September 2026, with legal completions permitted until 30 June 2027.
How Help to Buy Wales Works
Help to Buy Wales is a shared equity loan scheme administered by the Development Bank of Wales on behalf of the Welsh Government. It is designed to help buyers purchase new-build homes by reducing the size of the mortgage they need.
The structure is straightforward. The buyer provides a cash deposit of at least 5 per cent of the purchase price. The Welsh Government provides an equity loan of up to 20 per cent. The remaining balance, typically 75 per cent, is funded by a repayment mortgage from a qualifying lender.
As an example, on a property priced at £250,000, a buyer would need a minimum deposit of £12,500, an equity loan of up to £50,000 and a repayment mortgage of £187,500.
The equity loan is interest-free for the first five years. From year six, interest is charged starting at 1.75 per cent of the loan value and rising annually in line with the Consumer Price Index plus two per cent. A monthly management fee of £1 applies throughout the life of the loan. The equity loan must be repaid in full when the home is sold, when the mortgage term ends, or after 25 years, whichever comes first.
Because the loan is expressed as a percentage of the property's value, the amount repaid will reflect the property's market value at the time of repayment, not the original purchase price.
Eligibility for Help to Buy Wales
The scheme is open to both first-time buyers and existing homeowners, provided the property is their only home. There is no income cap. To qualify, a buyer must meet all of the following conditions:
The property must be a new-build home in Wales purchased from a builder registered with the scheme
The maximum purchase price is £300,000
The property must achieve a minimum Energy Performance Certificate rating of B
The buyer must provide a cash deposit of at least 5 per cent of the purchase price
The remaining balance must be funded by a first-charge repayment mortgage from a qualifying lender
The property must be the buyer's primary residence and cannot be sub-let
The buyer must not already own another property at the point of completion
In 2024-25, 603 property purchases were completed through the scheme, a 15 per cent increase on the previous year. First-time buyers accounted for 85 per cent of all completions, and 49 per cent of buyers used the minimum 5 per cent deposit.
Getting a Mortgage Alongside the Equity Loan
The mortgage element of a Help to Buy Wales purchase works differently from a standard purchase in several respects.
First, not all lenders participate in the scheme. The mortgage must come from a lender approved by Help to Buy Wales, and the range of products may be narrower than the open market. Interest rates, fees and criteria will vary between participating lenders, so it is worth comparing options carefully.
Second, the mortgage must be a repayment mortgage. Interest-only lending is not permitted under the scheme. Lenders will assess affordability based on the mortgage amount rather than the full property price, which can improve borrowing capacity for buyers who might struggle to meet standard affordability thresholds.
Third, lenders will take into account the equity loan repayment obligations when assessing longer-term affordability. Although the equity loan is interest-free for five years, the future cost of servicing it from year six onward is a factor some lenders consider during underwriting.
Securing a mortgage through the scheme requires the same documentation as any standard application: proof of income, bank statements, identification and evidence of the deposit. The lender will also need confirmation that the property and builder are registered with Help to Buy Wales.
What Happens When the Equity Loan Period Ends
After the initial five-year interest-free period, the equity loan begins to accrue interest. Many buyers choose to repay the equity loan before this point, either through savings or by remortgaging to raise the funds.
Repaying the equity loan involves obtaining an independent valuation of the property. The amount owed is based on the original equity loan percentage applied to the current market value. If the property has increased in value, the repayment amount will be higher than the original loan. Conversely, if the property has fallen in value, the repayment amount will be lower.
Buyers can make partial repayments, but the minimum partial repayment is 10 per cent of the property's current market value. It is important to factor in valuation fees and any early repayment charges on the existing mortgage when planning this step.
Alternatives for Buyers in England and Scotland
With Help to Buy equity loans no longer available outside Wales, buyers in England and Scotland looking for government-backed support have other options to consider.
Shared ownership allows buyers to purchase a share of a property, typically between 25 per cent and 75 per cent, and pay rent on the remaining portion. Staircasing arrangements allow the buyer to increase their share over time. This route is available on both new-build and resale properties through housing associations across England.
Right to Buy remains available for eligible council tenants in England who have held a public-sector tenancy for at least three years. Discounts can be substantial, depending on the property type, length of tenancy and location.
The Mortgage Guarantee Scheme, introduced in 2021 and extended to June 2025, encourages lenders to offer 95 per cent loan-to-value mortgages by providing a government guarantee on a portion of the loan. Several lenders continue to offer high loan-to-value products, though availability and criteria vary.
The Lifetime ISA allows first-time buyers under the age of 40 to save up to £4,000 per year toward a deposit, with a 25 per cent government bonus of up to £1,000 annually. The funds can be used toward a property purchase of up to £450,000.
For a broader overview of available schemes, see the Mortgage One guide to government mortgage schemes.
For a free initial consultation, call 01202 155992 or contact Mortgage One.
Key Considerations Before Applying
Help to Buy Wales can make homeownership more accessible, but it is important to understand the long-term financial commitment. The equity loan is a debt secured against the property, and its repayment value is linked to future house prices, which can rise or fall.
Buyers should also consider whether a new-build property represents the right purchase. New-build homes can carry a premium over comparable second-hand properties, and some lenders apply different valuation criteria to new-build purchases. The £300,000 price cap may also limit the choice of properties available in certain parts of Wales where new-build prices are higher.
The application deadline of 30 September 2026 means buyers need to allow sufficient time for the full process, including property reservation, mortgage application, legal work and exchange. Starting early reduces the risk of missing the scheme's deadline.
The information provided in this article is for general guidance only and does not constitute personal or regulated financial advice. If you'd like to understand what these moves could mean for you, speak to Mortgage One. We can explain your options and timings based on your specific circumstances.
Some Buy to Let mortgages are not regulated by the Financial Conduct Authority.
FAQs
1. Is Help to Buy still available in the UK? Help to Buy equity loan schemes in England and Scotland have closed. Help to Buy Wales remains open for applications submitted by 30 September 2026, with legal completions permitted until 30 June 2027.
2. Do I have to be a first-time buyer to use Help to Buy Wales? No. The scheme is open to both first-time buyers and existing homeowners, provided the property purchased is their only home.
3. Can I use Help to Buy Wales with any lender? No. The mortgage must come from a lender approved by Help to Buy Wales. Not all lenders participate in the scheme, and the range of products available may be more limited than the wider market.
4. What happens if I do not repay the equity loan after five years? Interest begins at 1.75 per cent of the outstanding equity loan value and rises annually in line with the Consumer Price Index plus two per cent. A £1 monthly management fee also applies throughout the loan term.
5. Can I remortgage to repay the equity loan? Yes. Many buyers remortgage to raise the funds needed to repay the equity loan. The amount owed is based on the equity loan percentage applied to the property's current market value, so an independent valuation is required.
6. What is the maximum property price under Help to Buy Wales? The maximum purchase price is £300,000. The property must also achieve a minimum Energy Performance Certificate rating of B.
7. Are there alternatives to Help to Buy for buyers in England? Yes. Shared ownership, Right to Buy, the Mortgage Guarantee Scheme and the Lifetime ISA are among the options currently available. A mortgage broker can help identify which route may suit your circumstances.