The Welsh government has announced a £170 million Help to Buy mortgage scheme to boost the housing market.
From January 2nd, 2014, buyers of new homes under £300,000 can apply for a loan to assist them financially. The investment will support the purchase of around 5,000 new homes in Wales during the next two-and-a-half years.
Carl Sargeant, housing minister, said that this scheme “will help more people get onto the property ladder and will provide much needed boost to the building industry in Wales”.
Buyers with a five per cent deposit will receive an initial interest-free loan of up to 20 per cent of the property value from the Welsh government. This means buyers can get mortgages from certain banks with a lower deposit than normal.
It is hoped that the scheme, very similar to the one rolled out in England in April, will give the economy a boost and create more jobs.
Mr Sargeant urged “all builders, large and small, to register now so that they are ready for the first loans being made available to buyers in January”.