Following the launch of the England-only Help to Buy equity loan scheme in April, the Welsh government has been planning to offer a similar scheme in Wales.
Housing minister Carl Sargeant has now confirmed that Welsh homeowners will be able to access government-supported equity loans by the end of 2013.
Sargeant said that he would consult on the ‘scope and potential scale’ of Help to Buy Cymru over the summer before a formal launch later in the year.
“I have been looking at a range of options to support buyers who are struggling to secure a mortgage or purchase an affordable family home,” he said in a statement to the Welsh assembly.
“This support is intended to stimulate demand and encourage greater supply of new-build properties. A fundamental part of this strategy will be the launch of a shared equity scheme: Help to Buy Cymru. We will be working with stakeholders to determine the scope and potential scale of a scheme over the summer in preparation for a launch later in the year.”
Yesterday Mortgage Solutions reported that housebuilder Persimmon Homes has launched a rival to Help to Buy in Wales, calling it ‘very unfair’ that Welsh buyers were unable to access such products.
The Help to Buy mortgage guarantee scheme will be available across both England and Wales when it launches in January 2014. Its announcement in March forced the Welsh government to abandon its plans to launch a NewBuy scheme in the nation.
However, Sargeant now said those plans could be revived when full details of the Help to Buy mortgage guarantee scheme are released next week.
“We have developed a NewBuy Cymru mortgage guarantee scheme. However this relies on a tri-partite relationship between government, builders and lenders and we are seeking to secure the engagement of all parties in a viable scheme.
“The need for the UK government to finalise the design of their Help to Buy mortgage guarantee scheme have meant that lenders are unable, at this time to commit to NewBuy Cymru.”
