Help for First-Time Buyers in Wales: Schemes, Mortgages and Practical Tips

Can I get help as a first-time buyer? Yes – but what help you can get depends a lot on where you’re buying.

If you’re buying your first home in Wales, there are specific schemes, taxes and rules you need to understand. From deposits to mortgages and government support, there’s a lot to get your head around – but with the right information, it becomes manageable.

Top tips for first-time buyers in Wales

Trying to get a leg up onto the property ladder? Here’s a quick overview of key steps that can help:

• Leverage existing government schemes in Wales

• Work out your finances and budget

• Explore your mortgage options (not just your own bank)

• Be flexible and widen your search area if needed

• Decide what type of property you actually need (flat/house/new build/older)

• Save, save, save – deposit and fees

• Get your head around extra costs (including Land Transaction Tax)

• Find a good solicitor and surveyor

We’ll unpack each of these as we go.

Government help for first-time buyers in Wales

There’s a lot of old content online about English schemes that don’t apply in Wales or have already ended. Here’s the reality now.

1. Help to Buy ISA (UK-wide, closed to new accounts)

The Help to Buy ISA is closed to new customers (since November 2019), but if you opened one before the deadline, you can still:

• Keep saving into it until November 2029

• Use it to buy a home up to December 2030

• Get a 25% government bonus on your savings when you buy (subject to the scheme rules) MaPS

If you already have a Help to Buy ISA, it can still be a valuable part of your deposit strategy. If you don’t, you can ignore it – focus instead on the schemes that are currently open.

2. Help to Buy – Wales (Shared Equity Loan)

This is one of the main active schemes in Wales right now. GOV.WALES+1

How it works (headline points):

• You must provide at least a 5% deposit

• The Welsh Government lends you up to 20% of the purchase price as an equity loan

• You take a repayment mortgage for the remaining 75%

• It’s only for new-build homes up to a set price cap (currently up to £300,000 under the latest scheme rules) GOV.WALES

• The equity loan is interest-free for the first 5 years, then interest is charged after that GOV.WALES+1

This can significantly reduce the deposit you need and open up better mortgage rates, but you must understand that:

• You’ll eventually need to repay the equity loan

• The amount you repay is based on the property’s value at the time of repayment, not the original amount borrowed

3. Shared Ownership – Wales

Shared Ownership – Wales is designed for people who can’t quite afford to buy 100% of a home at full market value. GOV.WALES+1

Key points:

• You buy an initial share between 25% and 75%

• You pay rent on the remaining share

• Over time, you can usually buy more shares (“staircasing”) up to 100% ownership

• Household income must usually be £60,000 or less and you must be a first-time buyer or meet specific criteria (new household, relocating for work etc.) GOV.WALES

This is particularly useful if your income or deposit wouldn’t stretch to a full open-market purchase.

4. Homebuy – Wales

Homebuy – Wales is an equity loan scheme aimed at buyers who meet specific local criteria (often administered through local councils or housing associations). GOV.WALES

• It can provide an interest-free loan of 30%–50% of the property price

• You must meet local eligibility rules, which may include income, housing need or local connection

This scheme is more targeted but can be powerful if you qualify.

5. Right to Buy (Wales) – now abolished

The traditional Right to Buy scheme – allowing council and some housing association tenants to buy at a discount – has been abolished in Wales.

• All Right to Buy and Right to Acquire rights ended in Wales on 26 January 2019

If you see generic UK content about Right to Buy, it’s out of date for Wales.

6. First Homes scheme (England only)

The First Homes scheme (discounted new builds for local first-time buyers) is England-only. It is not available in Wales. MaPS

In Wales, your main tools are:

• Help to Buy – Wales

• Shared Ownership – Wales

• Homebuy – Wales

Help for first-time buyers & Land Transaction Tax (LTT)

Instead of Stamp Duty, Wales has Land Transaction Tax (LTT). GOV.WALES+2edenhawk.co.uk+2

• LTT is payable on residential homes over £225,000 (main residence band)

• There is no special first-time buyer relief – first-time buyers pay the same LTT rates as everyone else

The upside is that the nil-rate band (£225,000) is higher than the standard SDLT nil-rate in England, and many first-time buyers in Wales still fall within that band.

Your solicitor will calculate LTT as part of the conveyancing process, but you should budget for it early.

Exploring first-time buyer mortgages

Even with government help, most first-time buyers will still need a mortgage.

How much deposit?

• Most lenders expect 5–20% deposit

• More deposit = better deals and lower monthly payments

If rent is high, it can feel impossible, so you may need to combine:

• Personal savings

• Help to Buy – Wales / Shared Ownership

• Family support (gifts or guarantor-type products)

Don’t just take the first offer

Different lenders:

• Use different affordability calculators

• Have different attitudes to credit history, income types, and schemes

• Price their products differently

Speak to a mortgage adviser rather than only your own bank. They can compare options across multiple lenders and match products to your circumstances.

Always remember: Your home may be repossessed if you do not keep up repayments on your mortgage.

Types of mortgage deals

There are several types of mortgage products commonly used by first-time buyers:

• Variable rate (SVR, tracker, discounted rate)

• Fixed rate (rate fixed for 2, 5 or more years)

• Cashback deals (small lump sum back at completion)

• Offset (linked savings offset your mortgage interest)

• Capped-rate (rate can move but won’t exceed a certain cap)

Each has pros and cons around:

• Payment certainty

• Flexibility

• Overall cost over the term

A broker can help you decide what fits your risk tolerance and future plans.

Friends’ mortgages and buying with others

One way to get onto the ladder is to buy with friends or family:

• You share the deposit and mortgage

• It can let you buy a better property or in a better area

• Each borrower is usually jointly and severally liable – if one person can’t pay, the others must cover

If you go down this route, you should:

• Get independent legal advice

• Put a deed of trust in place setting out shares and exit arrangements

Guarantor and family-backed mortgages

There are several family-support style products:

Guarantor mortgages

• A parent or close family member agrees to cover the payments if you can’t

• They might use their income or their property as additional security

• The guarantee usually ends once the mortgage has reduced to a safer loan-to-value (e.g. 80%)

Family offset / savings-based support

• A family member lodges savings in an account linked to your mortgage

• Their savings reduce the effective interest or stand as security

• Once your mortgage LTV is low enough, they can usually withdraw their money (sometimes with interest) keepmoat.com

Not every lender offers these, and criteria vary – this is where a broker earns their keep.

The mortgage application process – what lenders look at

Lenders want to know one thing: Can you afford this now and if rates rise?

They will:

• Look at your income (salary, self-employed, bonuses, benefits)

• Review your outgoings (loans, credit cards, childcare, commitments)

• Check your credit file for missed payments, defaults or CCJs

• Stress-test your mortgage at higher interest rates

Don’t hide anything. Inaccurate applications can lead to declines and delays.

As a rule of thumb:

• Being in a job for at least 6 months, with a stable pattern of income, helps

• Reducing unsecured debt improves your affordability and credit score

Your home may be repossessed if you do not keep up repayments on your mortgage.

Practical advice to improve your chances of getting a mortgage

Some simple steps can make a big difference:

• Check your credit rating early and correct any errors

• Avoid new credit in the months before applying

• Have at least some deposit and fees in place before viewing seriously

• Use a Mortgage Agreement in Principle (AIP) to set your price range

• Be realistic about what you can afford after bills, not just before

A good adviser will also help you look at:

• Different term lengths (e.g. 25 vs 30+ years)

• Fee vs rate trade-offs (higher fee / lower rate vs no-fee / higher rate)

• How your deposit size and scheme choice affect your options

Handy hints for home ownership in Wales

There’s more to buying than the mortgage.

Location

Location can drive both quality of life and future value. Your options might include:

• Moving as close as possible to your preferred area (if you’re priced out of the exact hotspot)

• Targeting up-and-coming areas with improving transport or regeneration plans

• Buying something cheaper that needs work – if you’ve costed the renovations properly

Freehold vs leasehold

• Freehold: You own the property and the land it sits on

• Leasehold: You own the property for the length of the lease, but not the land (common for flats). There may be ground rent and service charges

In Wales, leasehold reform is a live topic and may change over time, but for now, always:

• Check the lease length

• Understand service charges and any planned major works

• Get your solicitor to explain your obligations clearly The Guardian

Deposits – how much to save?

There is no single right number, but:

• Aim for at least 5–10%, ideally 15–20% if possible

• Remember you also need money for fees, LTT, furnishing and a contingency

Guidance on costs beyond the purchase price

It’s not just about the headline purchase price. You must also budget for:

Solicitor / conveyancer fees

They handle:

• Legal checks and contracts

• Local searches

• LTT return and completion funds

Always choose someone with capacity and experience in your type of purchase (e.g. new build, leasehold, Shared Ownership).

Removal costs

Get at least two or three quotes from removal companies and check that they’re properly insured.

Insurance

You may need:

• Home buyer protection (optional)

• Buildings insurance – usually mandatory with a mortgage

• Contents insurance

• Insurance for possessions in transit

Mortgage arrangement fees

Some deals have:

• No fee but slightly higher rates

• A fee (often £0–£2,000+), sometimes added to the loan

Your adviser should compare the true cost over the fixed period, not just headline rate or fee.

Survey costs

Surveys can range from a few hundred pounds upwards, but they can save you thousands if they uncover serious issues.

Furnishing and decorating

Even a “move-in ready” home usually needs:

• Curtains/blinds

• Furniture / appliances

• Redecoration in at least one or two rooms

Build this into your budget.

Ready to get tailored help?

There is real help for first-time buyers in Wales – but a lot of the online noise is England-only or out of date.

If you want someone to:

• Make sense of Help to Buy – Wales, Shared Ownership, Homebuy

• Work out what you can realistically afford

• Help you compare mortgage options and navigate the process

Schedule a free, no-obligation call with our Mortgage Advisor.

We’ll walk you through your options step by step and help you take that first, confident step onto the property ladder in Wales.