Principality Building Society has announced a new partnership with Wales & West Housing to deliver a 0% deposit mortgage as part of an affordable home-ownership initiative.
Wales & West Housing, which manages 12,500 homes across 13 local authorities in Wales, has developed Own Home Cymru to bridge the widening affordability gap between private renting and ownership.
The initiative, which is the first of its kind in Wales, will initially be exclusively available to those purchasing homes at Wales & West Housing’s Dee Gardens development on Deeside in Flintshire. It aims to support individuals and families from the area who can sustain mortgage repayments but lack the access to the large deposits typically required by traditional lenders.
Under Own Home Cymru, all homes are delivered through a discount market sale model, where properties are sold at full market value, but offered to eligible buyers at a 30% discount.
Principality Building Society will provide a bespoke 0% deposit mortgage to those applying for these properties, which will allow buyers to access these homes without needing upfront savings, ensuring that support is directed to those most in need, through strict affordability assessments.
Vicky Wales, Chief Customer Officer, at Principality Building Society, said:
“As Wales’ largest building society, our purpose is to help people prosper in their homes, lives, and communities. We are proud to work alongside Wales & West Housing to offer a truly innovative route into homeownership. By removing the barrier of a deposit, we are enabling more people in Wales to achieve the stability of being able to get on to the property ladder.”
Matthew Owens Head of Commercial Development, at Wales & West Housing, added:
“We are very grateful for the support provided by the Principality Building Society for our discounted sale product ‘Own Home Cymru’. The mortgage products that they offer will make it easier for first time buyers to get on the property ladder by significantly reducing the upfront costs of entering into home ownership.
“We look forward to working with the Principality Building Society over the next few years, helping to provide support for first time buyers in Wales.”
The launch of Own Home Cymru comes at a pivotal time for housing in Wales, Principality Building Society said. With traditional government-backed schemes such as Help to Buy (Wales) due to end next year, and Help to Buy (England) already closed, the landscape for aspiring homeowners is changing rapidly, it added.
Meanwhile, reductions in Right to Buy discounts – down from 72% to just 16% – have created further challenges for those seeking to move from rental accommodation into homeownership, the Society said.
