In our FAQ series, our expert conveyancing solicitors advise a potential homeowner about the government schemes available to potential homeowners.
Q: I have read about a new scheme in Wales to assist home buyers. What is it?
A: There is a new Welsh Assembly Scheme (which starts on January 1, 2014) which is available for all home buyers in Wales buying new-build properties under £300,000.00.
The scheme is called Help to Buy Wales. It allows house buyers with a 5% deposit to apply for an initial government-funded loan that’s up to 20% of the property’s value. Potential buyers can arrange a mortgage with any lender for the remaining 75%.
Aside from a small administration fee of £1.00 per month, the loan is interest free for the first five years but then will be trackable to the Retain Price Index plus 1%.
If you then sell your property in the future, you’ll have to repay the percentage of your property’s market value that’s owned from your lender. For instance, if you had a 20% loan for a £200,000.00 property and sold it for £250,000.00, you’ll have to repay £50,000.00 (20% of the market value).
There is also a UK Government Scheme which allows first time buyers and homeowners to arrange a loan with an approved lender with only a 5% deposit. Read more here.
Speak to conveyancing solicitors at Howells today
If you’re buying your home through a government scheme, it’s important use an experienced solicitor that knows the property market inside out. Award-winning conveyancers at Howells can help your house move go through as smoothly and simply as possible. Find out more online today or call 02920 404020.
by Tristan Lewis
