The schemes helping buyers in Wales get on the property ladder

House made of £20 notesSaving a deposit for your first house is no easy task, and if you’re already spending a large portion of your income on rental payments it can prove even more difficult. 

Fortunately, the Welsh Government has backed a number of schemes in recent years that are tailored to help people in different circumstances take steps towards purchasing their first property and finally get their foot on the ladder. The schemes all have varying eligibility criteria, meaning there should be a scheme among them that is most suitable for you.

Back in February, Rebecca Evans AM, regeneration minister said that Help to Buy Wales has so far supported many people across Wales who have a 5% deposit to put down on their first home. However, she says they are also aware that many hard-working people find it extremely difficult to save the necessary funds for a deposit, but they are still committed to providing the support needed to help people take the difficult first step when buying their own home in Wales.

The Welsh Government will be investing £70m in the Rent to Own and Shared Ownership schemes as part of their plans to build 20,000 affordable homes within the next 3 years.

The schemes that prospective first-time buyers could consider include the following:

Rent to Own

This scheme is the newest available following its launch in February this year.

The aim of the Rent to Own scheme is to help people who can afford monthly payments but aren’t in a position to save an adequate mortgage deposit.

Tenants of rental properties within the scheme are able to build a lump sum toward a deposit while they are renting. This lump sum can then be used to help secure a mortgage that will enable them to purchase the property.  

The scheme isn’t just available for first-time buyers, but eligibility criteria does apply, including applicants needing to have a combined household income of £60,000 or less.

Shared Ownership

The Shared Ownership scheme is designed to support people who do have access to a small deposit and are able to obtain a mortgage on a proportion (between 25% and 75% to begin with) of the value of the property. Rent will then continue to be paid on the remaining share.

Again, this isn’t just available to first-time buyers, but eligibility criteria does apply.

Help to Buy

The Help to Buy scheme is probably the most popular and most well-known scheme, and this offers a shared equity loan to buyers of new-build properties. The scheme supports the purchase of properties up to £300,000 bought through a registered Help to Buy builder.

A 5% deposit is required, and the shared equity loan can be up to 20% of the purchase price. There are many new-build houses and apartments across Cardiff that have already seen many people take advantage of the scheme.

Homebuy Wales

The Homebuy Wales scheme offers an equity loan that helps with the purchase of an existing property. It’s beneficial for people who couldn’t otherwise afford to buy a property and is particularly useful in rural areas where new-build homes are not as readily available.

The Homebuy scheme isn’t available in all areas, and where it is offered the scheme will be subject to local eligibility criteria.

If you’re looking to purchase your dream home in Cardiff, then our team at CPS Homes estate agents have the expertise to help you every step of the way. Why not give us a call on 02920 668585 and discuss your requirements with us today? Alternatively, you can e-mail us at enquiries@cpshomes.co.uk or pop into one of our Cardiff branches in Roath, Cathays and Cardiff Bay.

22 August 2018

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