Homebuy – Wales: how the Welsh Government's 30% equity loan works
Or call 02922 820 840
Quick answer: Homebuy – Wales is a Welsh Government scheme that helps people who couldn't otherwise afford a suitable home to buy an existing property — not a new-build. You contribute around 70% of the price through a mortgage and/or savings, and an equity loan covers the remaining 30%. There are no monthly payments on the loan; you repay 30% of your home's value when you sell, or earlier if you choose. It isn't available in every area — each local authority or housing association that runs it sets its own criteria. Checked against gov.wales, August 2026.
What Homebuy – Wales is
Homebuy – Wales is an equity loan scheme for existing homes: it lends you part of the price, which you repay as a share of the home's value rather than a fixed sum. The Welsh Government describes it as supporting "people who could not otherwise afford to buy a property", and says it is "particularly of benefit in more rural communities where there may be few opportunities to buy a home" (gov.wales).
Help to Buy – Wales works on registered new-build developments across South Wales. Homebuy is aimed at areas where affordable homes to buy are scarce, and it is not available everywhere. Where it runs, the local authority (council) or a Registered Social Landlord (a housing association) manages it and adds local rules to the national ones.
How the loan works
From the scheme's own guidance:
- You normally pay 70% of the purchase price, through a mortgage from an approved lender and/or your own savings. Your deposit is part of that 70%: the scheme doesn't remove the need for one, it shrinks the mortgage you need.
- The equity loan covers the other 30%.
- There are no monthly payments on the equity loan. Your only regular payment is your mortgage.
- When you sell, you repay the same percentage of the home's value at the time, not the amount you borrowed. If your home has gone up in value, you repay more than you borrowed; if it has fallen, you repay less.
- You can repay early, before selling, based on your home's value at that point.
The Welsh Government's own example, for a £200,000 home:
Scroll sideways to see every column.
| Value of home | Your contribution (70%) | Equity loan (30%) | |
|---|---|---|---|
| At purchase | £200,000 | £140,000 | £60,000 |
| Sold after a 2% rise | £204,000 | £142,800 | £61,200 to repay |
| Sold after a 2% fall | £196,000 | £137,200 | £58,800 to repay |
So the loan costs nothing month to month, but isn't free: its real cost is 30% of whatever your home gains in value between buying and repaying. If prices stay flat, you repay only what you borrowed; if they rise, the repayment grows with your home.
Who is eligible
The national rules, from gov.wales:
- you can show the council or Registered Social Landlord that you are not adequately housed, or can no longer afford to stay in your current home
- you could not buy a home suitable for your needs without Homebuy's help
- you can get a mortgage for your share, and have savings for the other costs of buying
- you meet the local rules set by whichever council or housing association runs the scheme in your area
You can apply if you get Housing Benefit (or have had it in the last 12 months), as long as you pass the lender's affordability assessment (its check that you can afford the repayments). Once you own the home, you may not be able to claim Housing Benefit, though you may be able to get help through Support for Mortgage Interest (a government loan towards your mortgage interest, which you pay back).
In practice, the first two tests mean Homebuy is for households priced out of their own area, not buyers who could stretch to a suitable home on the open market. Expect the landlord running it to look at your circumstances in detail.
Where it runs, and the South Wales picture
Each area decides, so there's no single map of "Homebuy areas". Given its rural focus, it's more likely to be running in parts of the Vale of Glamorgan, rural Monmouthshire or further west along the coast. It's less likely in central Cardiff or Newport, where it's harder to argue that affordable homes are scarce. If you have a particular town in mind, ask the housing options team at that council, or the housing associations there, whether Homebuy is open and what the local rules are.
To apply where it runs, the guidance asks you to read the Homebuy – Wales Buyers Guide and fill in an application form from a participating Registered Social Landlord or the council (gov.wales).
Homebuy vs Help to Buy – Wales
The two Welsh equity loan schemes are easy to mix up, and Help to Buy – Wales is open to new applications only until 31 March 2027:
Scroll sideways to see every column.
| Homebuy – Wales | Help to Buy – Wales | |
|---|---|---|
| Property type | Existing homes | New-build only, registered developments |
| Status | Open (local availability varies) | Open — applications must be submitted by 31 March 2027 |
| Equity loan | ~30% | Up to 20% (£300,000 price cap) |
| Monthly cost of the loan | None | Interest-free for 5 years, then interest applies |
| Repayment | 30% of value at sale (or earlier) | Percentage of value at sale or after 25 years |
| Who it targets | Households priced out of their area, often rural | Any eligible buyer on a participating development |
Both are repaid as a percentage of your home's value, not a fixed sum: the part of equity loans most people misunderstand.
The costs Homebuy doesn't remove
- Land Transaction Tax (the Welsh version of stamp duty) is charged on the full price, not just your 70% share. Wales has no first-time buyer relief: everyone pays the same rates, with nothing to pay below £225,000. Try your price in our stamp duty Wales calculator.
- Buying costs: the survey, legal fees and moving costs all still apply, and the rules expect you to have savings for them.
- Your mortgage is a normal one from an approved lender, with the usual affordability checks on your 70% share.
Our first-time buyer schemes and low-deposit routes in Wales guide covers every route: 95% mortgages, shared ownership (buying part of a home and renting the rest), gifted deposits, and which schemes are open.
FAQ
Is Homebuy – Wales still open in 2026?
Yes. Unlike Help to Buy – Wales, where applications must be submitted by 31 March 2027, Homebuy – Wales has no announced closing date. But it has never run everywhere, so being open nationally doesn't mean it's open where you want to buy. Check with the council's housing team before planning around it.
Do I pay interest on the Homebuy – Wales equity loan?
No, and there are no monthly payments on the loan at all. The cost comes when you repay 30% of your home's value (on sale or earlier), which rises if your home's value does. Help to Buy – Wales is different: interest-free for five years, then interest starts.
Can I use Homebuy – Wales in Cardiff or elsewhere in South Wales?
Possibly, but don't count on it. It's aimed at areas with few affordable homes to buy, often more rural parts of South Wales, and each council decides whether and where it runs, so check with the council where you want to buy. If that's Cardiff, Cardiff Council's housing options team can tell you whether any Homebuy allocation is open. In central Cardiff, the realistic route is more often a 95% mortgage or Shared Ownership – Wales.
Can I repay the equity loan without selling?
Yes, based on your home's value at the time you repay. Some owners do this after a few years of pay rises or overpayments, to own the full 100%. Because the 30% is priced at the home's value when you repay, it costs more if values have risen, and less if they've fallen.
Is there a price cap or income cap?
There's no single national figure, but the home's price must be within the scheme's published price limits, which vary by area and family size; the housing association tells you which limit applies to you. There's no set income cap, but the eligibility tests (you must be unable to buy a suitable home without help) and local rules do a similar job in practice. The landlord running the scheme decides whether the home and your circumstances fit.
Where to go next
Homebuy is one route among several; which suits you depends on where you're buying and what you can put down. Start with the low-deposit routes in Wales overview and check what Land Transaction Tax adds at your price. If you're weighing a new-build against an existing home before the Help to Buy – Wales deadline of 31 March 2027, our Help to Buy – Wales guide covers the timings.
Prefer to check your affordability first? Check how much you could borrow →
