The Welsh government has announced it will launch its £170m Help to Buy equity loan scheme in January.
Welsh housing minister Carl Sargeant said the scheme will be available to would-be homeowners with small deposits from 2 January next year.
The move follows the launch of the Help to Buy equity loan schemes across England in April and Scotland in September. The Help to Buy mortgage guarantee scheme has been available across the UK since its launch in October.
The Welsh scheme will be open to borrowers with a 5% deposit with the Welsh government contributing a loan of between 10% to 20% of the purchase price. The scheme will apply to new build homes only and the property must be a buyer's sole residence.
The equity loan element of the mortgage will be interest-free for the first five years before being charged at 1.75% each subsequent year, increasing in line with the retail price index.
Although the scheme is similar to its English equivalent it does differ in several ways. The property value can be no more than £300,000, compared to £600,000 for the English scheme, while solicitors will be more involved in the process to reduce the burden on builders.
Sargeant said the launch of the scheme would help bring confidence back to the struggling Welsh housing market.
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