The Welsh Government’s Help to Buy equity loan scheme will begin from Thursday 2 January 2014.
Equity loans will be available to all home buyers in Wales purchasing a new-build property who meet the Help to Buy (Wales) scheme criteria, including first time buyers and home movers, purchasing their only property in Wales up to a maximum value of £300,000.
Buyers must have a 5% deposit, based on the purchase price. The property is then part financed (up to 20% and a minimum of 10%) by an equity loan from Finance Wales.
Under the scheme in Wales, interest fees will apply from the fifth year after the loan has been taken out, while the equity loan will be accompanied by a £1 monthly administration fee from year one until year five.
The Nationwide Building Society has confirmed it will accepting mortgage applications from borrowers looking to participate in the Welsh scheme from its inception.
Tracie Pearce, head of group mortgages at Nationwide, said: “From January, Nationwide will be accepting mortgage applications for the Help to Buy equity loan scheme in Wales, which is part of efforts to help the mortgage market move forward.
“We are keen to support Nationwide customers in Wales to access great mortgage deals to enable them to move onto or up the housing ladder.”