Mortgage Support Scheme launches in Wales
There is a new mortgage support scheme to offer help to homeowners and keep people in
their homes. In light of the current economic climate which has presented many challenges
over the last year, homeowners have seen significant rises in utilities, inflation and as a
result mortgage interest rates.The Welsh Government has stepped in at a pivotal time to
help specifically support homeowners, this comes in addition to the various cost of living
schemes issued over the last year.
What is Help to Stay Wales?
Help to Stay Wales is a new mortgage support scheme that has funding available to welsh
homeowners who are having difficulties in paying their mortgage. The scheme will offer an
option for homeowners who are struggling to afford their mortgage payments and are at
serious risk losing their home by offering a partial repayment of an existing mortgage
balance via a low-cost equity loan, secured by a second charge (behind first charge lender),
reducing revised mortgage repayments to a level the applicant can afford.
Help to Stay Wales will work alongside support offered by mortgage providers through the
UK Mortgage Charter for customers who are struggling to afford their mortgage payments.
The Scheme will be operated by the Development Bank of Wales and will be interest free for
the first five years.
What is the purpose of Help to Stay Wales?
The purpose of the Scheme is to reduce the number of homeowners at risk of repossession
and homelessness by offering them time to resolve their underlying financial issues.
Minister for Climate Change, Julie James, said:
The current economic climate presents many challenges for homeowners as they face the
significant rise in fuel costs, high inflation, escalating rent and house prices with incomes
often not keeping pace.
The aim of the Help to Stay Wales Scheme is to help homeowners to continue living in their
precious homes.
This new, targeted support should be able to help more people at an earlier stage, not just
those threatened with repossession, meaning they can stay in their homes and help them
avoid the stress of not being able to pay their mortgage.
Why has Help to Stay Launched?
The Resolution Foundation says annual mortgage repayments are set to be £15.8bn a year
higher by 2026 compared to December 2021, when the Bank started raising interest rates.
Annual repayments for people remortgaging next year are set to rise by £2,900 on average.
Mortgage and landlord possession statistics up to April to June 2023 show that, compared to
the same quarter in 2022, mortgage possession claims increased 15%.
The Welsh Government hopes that with increased investment, they can prevent many
individuals and families from entering possession proceedings and becoming homeless
adding to the already stressed waiting lists and high temporary accommodation costs for
Local Authorities.
Who is the scheme available to?
The Help to Stay Scheme is available for eligible households who have explored all other
measures offered by the mortgage provider through the UK Mortgage Charter and sought
help through debt advice services.
Homeowners who are eligible will receive free mortgage advice from specialist debt
advisors, with the costs fully covered by the Welsh Government. This will ensure the
Applicant has received independent advice as to the options available, confirm that all other
avenues had been exhausted and verify the levels of debt service the Applicant could
reasonably afford based on a review of their current circumstances.
Anyone at immediate risk of losing their home can contact Shelter Cymru’s helpline on
08000 495 495 for independent advice.
How to apply?
You must apply through the government website by submitting an application, before you do
this you must have received debt advice.
If you require more information and access to the Help to Stay Scheme then you can visit
the welsh government website here:
.
