Money People Online Money People Online

Search MoneyPeopleOnline:

Help to Stay Wales scheme announced for Welsh homeowners

New 'Help to Stay' equity loans have been announced to support Welsh homeowners that are at risk of having their homes repossessed

A photo of Grace Lynch, the author

By Grace Lynch

Published on: 10 November 2023

4 min read

Help to Stay Wales scheme announced for Welsh homeowners

Homeowners in Wales will be happy to hear that a new ‘Help to Stay’ Wales mortgage support scheme has been announced. With this scheme, the Welsh government will be offering equity loans to support homeowners who are struggling with mortgage payments.

The aim of the new scheme is to try and end homelessness in Wales by providing better to support to homeowners who are at risk of having their homes repossessed.

We’re happy to hear that the Welsh government are taking steps to better support homeowners at time where many people are struggling with high interest rates and an increased cost of living. Our hope is that governments in England, Scotland and Northern Ireland will take note of this announcement and consider similar steps to provide better mortgage support across the whole UK.

This new budget agreement with Plaid Cymru means there is now £40million worth of repayable funding to help provide financial support to mortgage holders in Wales until the end of 2024.

QUICK SUMMARY – Help to Stay Wales Mortgage Support Scheme announced for Welsh homeowners

The Help to Stay Wales Mortgage Support Scheme will be providing £40million worth of financial support to Welsh homeowners until the end of 2024. This scheme is a great first step to reduce the growing rates of homelessness and home repossession in Wales.

  • This new mortgage support scheme has been described as a “reaction to volatile interest rates”, as the Welsh government are concerned about the affordability of mortgages when people come off a fixed rate terms.
  • The Welsh government are also beginning to look at the challenges presented by private rentals, which have been steadily increasing in price since the pandemic.
  • if you are worried about your mortgage and affording your repayments, it may be worth considering remortgaging to a new fixed rate deal. if you’re not sure of your best options, you should get proper advice from a qualified mortgage broker.

The help to stay Wales support scheme is an initiative that will be offering interest free loans to Welsh homeowners. the loans will be interest free for the first five years and are intended to help cover the cost of mortgage repayments each month.

The loans will be secured by second charge on your existing mortgage, which should help lower the cost over mortgage repayments to make them more affordable.

The help to stay Wales scheme is aimed at homeowners who are serious risk of repossession of their homes.

To qualify for the scheme, you must:

  • Live in a home worth up to 300,000 pounds maximum
  • have an annual household income of £67,000 or less
  • be able to provide evidence if their financial situation and the difficulties they are facing in repaying our mortgage (you may be able to borrow up to 147,000 pounds to pay off some or all of your mortgage)

You will not have to repay this loan within the first five years and no interest will be added for these initial five years. while it’s a great scheme and one that will be a massive help to many mortgage holders, It is important to remember that the loan will have to be repaid eventually and it’s not free money.

This scheme is designed to work alongside the support offered by mortgage providers any customers who are struggling with their repayments. The scheme will offer interest free equity loans of anywhere up to £147,000, and this money can be used to pay off part (or potentially all) of a mortgage.

The loan is only interest free for the first five years and it’s after these five years where you will need to start making repayments. The hope is that five years will be in long enough to help homeowners recover their finances and be in a better situation to repay by the time they need to.

Many people in Wales (and the UK in general) are understandably concerned about the impact of higher interest rates on their mortgages. Interest rates in the UK have been steadily increasing over the past two years, though they have started to level out since September.

However with increased pricing for many essentials now such as food, fuel and electricity, a large proportion of UK homeowners are struggling to afford their mortgage repayments.

If you’re worried about your mortgage there are a few things that you can do to access support:

  • See if you are eligible for schemes like the help to stay Wales mortgage scheme or other government funding
  • Contact your mortgage lender – often they will have support in place and may allow you to take a short repayment holiday while you work to improve your finances
  • Talk to a mortgage specialist – specialist mortgage broker will be able to look at your current mortgage and those available on the market to savoury mortgage could lead to you saving money due to lower repayments each month

Here is more of the latest news about mortgages and homes in the UK.

Sign up for our newsletter

Sign up today for all the best deals and helpful guides. Take control of your finances the MoneyPeople way!