If you are struggling to raise a deposit to move to a new build home in Wales, then the Help to Buy Wales Equity Loan scheme is worth looking into. Oaking Developments offer this on all their developments in North Wales.
The Help to Buy Wales Equity Loan scheme could allow you to move home with as little as a 5% deposit and a 75% mortgage. Under the Help to Buy Wales scheme you can make up the rest with a 20% equity loan from the government.
Here’s a quick summary:
- The Scheme is available in Wales for affiliated new builds up to the value of £300,000.
- Existing home owners and first time buyers are eligible.
- Buyers are required to provide a minimum deposit of 5%.
- This must be your only property and you must occupy the property.
- The maximum equity loan you can be offered is £60,000 (there is no minimum amount).
How does it work?
You can now borrow 20% of the value of a new build property worth up to £300,000 under the Help to Buy Wales scheme. From the date you start the scheme, you will have to pay a monthly £1 administration fee. Other than this, you won’t have to pay anything else in the first five years. In the sixth year you will be charged interest of 1.75% per annum on your loan which will increase every year by the retail price index plus 1%.
As stated Oaking Developments offer this on all our developments in Wales.
So what do you need to know?
The Equity Loan is repayable after 25 years, or on the sale of the property, whichever comes first.
You can sell your home at any time, however you will have to pay back the loan: 20% of the sales price at the time you sell. If your property increases in value, you may end up repaying more than you originally borrowed.
For more information and advice on the Equity Loan scheme, please speak to us or email us at firstname.lastname@example.org, or contact your mortgage broker. This is a great opportunity to get into your new home sooner than you may think!