Getting A Mortgage In Wales

Learn more about best Welsh mortgages and how specialised brokers can offer expert advice to assist

Firstly, are you looking to purchase a property in Wales?

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Pete Mugleston

Author: Pete Mugleston - Mortgage Advisor, MD

Updated: September 20, 2023

Are you looking to take out a mortgage in Wales? We often receive queries from Welsh residents and expats, as well as from first-time buyers who are planning on moving to Wales and have questions about the Welsh mortgage system and how it may differ from one they’re familiar with.

The advisors we work with have strong experience of arranging mortgages in Wales, good relationships with Welsh mortgage companies and a comprehensive overview of the system as a whole.

So, whether you’re a first time buyer, an existing property owner looking to remortgage, a landlord seeking a buy-to-let in Wales or if you’re thinking of taking advantage of the Welsh Help to Buy government backed mortgage scheme, the experts on our books are well placed to help.

Can I get a mortgage in Wales?

As long as you meet the lenders’ eligibility criteria and mortgage affordability requirements, you should have no problem taking out a mortgage in Wales at a competitive rate. The vast majority of well-known UK mortgage lenders offer mortgages on properties in Wales, and there are a few specialists that only operate in Wales, too.

How much do I need to earn to get a mortgage in Wales?

This will depend mainly on the price of the property you’re buying, but most lenders will allow you to borrow an amount equivalent to up to 4.5 x your salary or combined salaries.

This rule of thumb applies all over the UK, but every lender’s policy is different, and some will be more generous than others. The experienced brokers we work with will know exactly who the best lenders are for you.

Can I get a mortgage in Wales with bad credit?

Credit history is one of several factors that lenders look into when deciding whether to make you a mortgage offer, as well as what that offer will look like in terms of interest rates, the deposit required and so on.

Mortgages for people with bad credit are sometimes restricted with the number of lenders willing to approve the mortgage application.

The extent to which your chances of success are affected will depend on the severity of the adverse credit when it occurred, and the lender’s own policies. Fortunately, there are lenders who will offer mortgages to those with blips on their credit record: speak to an expert for advice on your options if you’re concerned about your credit history.

What deposit do I need for a Welsh mortgage?

Mortgage deposits in Wales are affected by a range of factors, just as they are elsewhere in the UK.

Usually, if you have a squeaky clean credit history and are a close ‘fit’ to the lender’s idea of a perfect customer, you’ll have the option of putting down a smaller deposit than someone with a lot of bad credit and multiple deviations from their ideal criteria.

Don’t forget though, a bigger deposit means you’re borrowing less, so you may benefit from lower interest rates and you could pay off your mortgage quicker.

Can I get a 5% deposit mortgage in Wales?

In the right circumstances, it is certainly possible to take out 95% mortgages in Wales, equating to a 5% deposit. In fact, new ways to get a mortgage in Wales with this amount of deposit were introduced in 2021 to help stimulate this corner of the market during the coronavirus pandemic.

Firstly, there’s the mortgage guarantee scheme which is available to borrowers in Wales as well as the rest of the UK (until December 2023). Through this initiative, it’s possible to take out a 95% loan-to-value (LTV) mortgage with a participating high street lender. The government is ‘guaranteeing’ a portion of these loans so the mortgage provider can take more risk with the deals they’re offering.

To qualify for a mortgage under the scheme, you need to be buying a primary residence valued at no more than £600,000. The mortgage must be taken on a repayment basis and the applicant has to be an individual or individuals, not a company.

In addition to the mortgage guarantee scheme, several alternative lenders have launched their own new 95% LTV products and made them available outside of it. This has given extra borrowing options to customers who don’t wish to use a government scheme or don’t meet the requirements of it. Some of these mortgage products are only available through brokers, which highlights the importance of talking to one before you search the market for a 5% deposit mortgage.

To qualify for any mortgage with 95% LTV, you’ll need to have a strong credit history and comfortably meet the affordability criteria with plenty of evidence that you’re in a good position to pay back the lender.

First-time buyer mortgages in Wales

If you’re looking to buy your first home in Wales, we recommend you take a look at our guide for first-time buyers as our advice applies equally in Wales as it does to the rest of the UK. The mortgage guarantee scheme, which is open to first-time buyers, is available in Wales, as are the new 95% LTV mortgage products that were launched in 2021.

For first-time buyers in Wales, the only real difference to be aware of is the specifics of the Help to Buy mortgage scheme in the country. It doesn’t work in exactly the same way as its English and Scottish counterparts, but is very similar in its objectives.

Can I get a Help to Buy mortgage in Wales?

Help to Buy is available in Wales and is now entering its third phase, offering first-time-buyers and current homeowners a financial boost on qualifying property purchases (an older version of the scheme called the Mortgage Guarantee scheme Wales, has now closed).

Eligible borrowers are entitled to a shared equity loan from the Welsh government, worth up to 20% of the property’s market value. Only new build homes can be bought through the scheme and their market value must not exceed £250,000.

Help to Buy Wales’ current phase has recently been extended and will now run until March 2025. The scheme works slightly differently to other Help to Buy programmes in the UK, and you can find out more about it, including information on Help to Buy Wales mortgage rates in our guide to Help to Buy Wales.

Help to Buy Mortgage Providers Wales

If you use Help to Buy for a property purchase in Wales, you will need to use one of a list of approved lenders. You can find a full list of providers that participate in the Welsh Help to Buy scheme on the official Help to Buy Wales website but seeking specialist advice to ensure you get the best deal is always recommended.

Right to Buy mortgages in Wales

The Right to Buy scheme in Wales, which allowed tenants in social housing to purchase their homes, has now closed. There is some information available on the Welsh government’s site on alternative schemes that may be an option for those in council accommodation looking to get onto the property ladder.

Shared Ownership mortgages in Wales

Shared Ownership is another route to property ownership for those who don’t have the upfront funds to buy a home at market rate. In Wales, it allows you to purchase between 25% and 75% of the property with rent on the remaining share, with the option to own 100% once you have the money available.

Remortgage in Wales

Remortgaging is a good way to reduce your monthly repayments at the end of a fixed term, or to access some of the cash locked away in your home in the form of equity release. Our remortgage FAQ is a useful source of information on this topic, and applies equally to Wales as to the rest of the UK.

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Buy-to-let mortgages in Wales

There is a busy buy-to-let (BTL) market is in Wales, especially around the Swansea and Cardiff areas. Consequently, there is a wide range of lenders offer BTL mortgages. BTL mortgages tend to attract higher interest rates and require bigger deposits, but if you meet the lender’s criteria you can certainly take one out. Don’t forget that all landlords in Wales are legally required to register with the Welsh Rent Smart scheme.

Can I get a commercial mortgage in Wales?

If you’re looking to take out a property loan for your business, commercial mortgages are available in Wales via a wide range of lenders. As these applications are a lot more ‘bespoke’ than those for standard residential or buy-to-let mortgages, you will almost certainly need to work with an experienced broker to find the best deal: find out more in our guide to commercial mortgages.

Where can I find a mortgage broker in Wales

If you’re looking for advice on mortgages in Wales – including Help to Buy Wales mortgage advisors, Buy to Let mortgage Brokers in Wales, commercial mortgage brokers in Wales and other specialists – we recommend you use one with access to the entire market so you don’t miss out on the best deals – including those from lenders that don’t deal direct with the public.

If you want to benefit from hyperlocal knowledge you can request broker based in a specific area: the advisors on our books can link you up with mortgage brokers in north wales, mortgage brokers in south wales or if you have really specific needs, e.g. a commercial mortgage broker in north wales, they can help you out there too.

How to get a mortgage in Wales

To ensure you get the best rate and the most flexible product for your circumstances, we advise speaking to a whole-of-market broker with good experience of the Welsh market.

All of the brokers we work with have these credentials and will be happy to help you find the best deal for you, so don’t hesitate to call us on 0808 189 2301 if you’d like us to put you in touch with one.

Speak to an expert on Welsh mortgages today

If you’re ready to proceed with your mortgage application for a new home in Wales, or if you have any further questions, the advisors we work with will be happy to help you find the answers you need, as well as the perfect deal for your circumstances.

All of our advisors have access to the entire market and are vetted through our accreditation scheme. Call us today on 0808 189 2301 or leave us a message make an enquiry and we’ll be in touch to discuss your requirements as soon as possible.

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About the author

Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for Online Mortgage Advisor of course!

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Pete Mugleston

Mortgage Advisor, MD

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