• Help to Buy – Wales is an initiative that provides shared equity loan assistance to home buyers from Help to Buy (Wales) Limited (HtBW) who have been allocated £290 million of funding via Welsh Government.
• Not available for a second home purchase or for investment purposes
• HtBW will be available between 2016 until 2021 subject to funds remaining available. This is on the basis of properties legally completing within these dates.
• HtBW Shared Equity is only available on selected newly constructed houses and is available to all home buyers who are buying as their main place of residence (no buy to let investors or those who already own a property) up to a maximum price of £300,000.
• Equity loans of between 10% minimum and 20% maximum of the house price are available, subject to specific criteria and require that purchasers provide a minimum of 5% of their own deposit.
• Those looking to use the scheme will take out a mortgage of 75%. The shared equity loan will be subject to a 2nd legal charge. The mortgage will be on a repayment basis only (interest only mortgages will not be available).
• Typically, your mortgage will be based on a multiple up to 4.5 times your household income. HtBW will also work to a guideline to ensure that your monthly costs (mortgage, service charges and fees) are no more than 45% of your net disposable income.
• The equity loan will be over a maximum period of 25 years. No interest will be charged until after 5 years. In the sixth year interest will be charged at 1.75% per annum on the outstanding equity loan. From year seven interest will be charged at 1.75% plus any increase in RPI (Retail Price Index) plus 1%; until such time as the equity loan is repaid. The interest payment will be due via monthly instalments from year 5 onward.
• The equity loan can be repaid at any time during the loan period. The loan must be repaid in the event that the property is sold and the value of the loan repayment will be set by means of an independent valuation of the property by HtBW at that time.
• Partial repayment can be made at any time but must be a minimum of 10% of the value of the property, set by means of an independent valuation.
• A £1.00 per month management fee will be charged by HtBW paid monthly by Direct Debit for the duration of the equity loan.
• Part exchange is not available under the scheme.
• All purchasers wishing to use the scheme must be qualified by Llanmoor Homes recommended IFA prior to being permitted to proceed any further.
• Once qualified and a price has been agreed with Llanmoor on the relevant property, a meeting will be arranged with Llanmoor Homes recommended IFA to complete the mortgage application forms and a HtBW property information form which will require information as to current earning and outgoings.
• The completed property information form and a copy of the reservation form will be forwarded to HtBW. Subject to all matters being in order an ‘Authority to Proceed’ letter will be forwarded to the buyer and Llanmoor. This will generally be within 4 working days of HtBW receipt of the forms.
• The buyer will then need to confirm to Llanmoor, the Solicitor and the IFA to proceed with the legal documentation, arrange payment of search fees and proceed with the full mortgage application. Subject to all being in order as to the mortgage application and upon completion of legal documentation and receipt of a mortgage offer, HtBW will issue approval to the Solicitor to proceed to exchange of contracts and to proceed to legal completion once the property is ready.
• The HtBW website has a great deal of further information as to the scheme and can be found by visiting www. helptobuywales.co.uk
• Llanmoor homes can recommend a Solicitor to act for you in your purchase and who is well acquainted with the Help to Buy – Wales Scheme. Please ask our Sales Negotiator for details of recommended Solicitors.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY DEBT SECURED ON IT