What is the Gwynedd Homebuy Scheme?

This is a scheme aimed at people who cannot afford to buy a house on the open market without assistance.

To be eligible, you must be a first-time buyer, or living in a home that is unsuitable for your needs (e.g. overcrowded), and meet the following criteria:

• You must be over 18 years old.

• Local connection: you must have at least 5 years of local connection to the area where you want to live (for example, having lived in the area for 5 consecutive years).
• If you already own a home, you must show that it does not meet your needs or that you cannot afford to stay there – for example, if you cannot afford a home of the right size for your family on the open market or through any other home ownership scheme.
• You are unable to buy a home that meets your needs without assistance from the Gwynedd Homebuy Scheme.
• You must be able to obtain a mortgage and a deposit for the property you wish to buy.

The equity loan is calculated by comparing what you can afford through a mortgage and deposit against property prices in the community where you want to live. The equity loan can be up to 50% of the property’s value.

For example, if prices for a two bedroom house in an area are £200k but the qualified applicant can only afford a deposit of £10,000 and a mortgage of £150,000, we can lend £40,000 (or 20% of the property value in this example) in the form of an equity loan. 

The maximum value of a property that can be purchased is £300,000 (£350,000 in some exceptional cases).

Before deciding to buy a property, you should take independent financial advice to get a clear idea of ​​the costs and liabilities involved in owning a home.

This calculator has been created to give you an idea if your financial situation is likely to mean that you are eligible for the Homebuy scheme before going ahead and applying for the loan.

Anyone wishing to apply for the scheme should use the calculator as a first step before contacting the Council. 

When you sell the home purchased with the help of this scheme, you will have to repay the loan.

There is no interest or other credit charges on the loan, so no Annual Percentage Rate (APR) applies. However, the amount you will repay is linked to the value of your home when it is sold. If the value of your home has decreased, the amount to be repaid will also decrease. If the value of your home has increased, the amount to be repaid will increase.

For example, if you borrowed 20% of the property’s value, you will need to repay an amount equal to 20% of the property’s value when it is sold. An independent valuation of the property will be carried out to establish the amount you will have to repay.

We will also retain the right to have the first opportunity to buy the property or to nominate someone to buy the property.