The Welsh Government has introduced the Help to Stay Wales mortgage support scheme, announced by Julie James, Minister for Climate Change, during a session in the Senedd.
The initiative comes in response to the financial challenges many homeowners face amid rising living costs and consecutive interest rate hikes by the Bank of England.
James told the Senedd: “The cumulative impact of the significant rise in fuel cost, high inflation, escalating rent and house prices, with incomes often not keeping pace is not to be underestimated.” She underscored the Government’s commitment to allocating over £3.3bn in support to mitigate these issues.
With around 800,000 fixed-rate mortgages set to expire by the end of the year and a predicted £15.8bn increase in annual mortgage repayments by 2026, the Welsh Government is acting to support those who may struggle with new financial pressures.
The scheme targets early-stage support for homeowners, not just those at immediate risk of repossession.
Help to Stay Wales offers a partial repayment option of an existing mortgage balance through a low-cost equity loan, aiming to reduce monthly repayments to an affordable level.
This will be secured by a second charge, supplementing a first-charge lender.
The scheme is available for those who have exhausted all options provided by their mortgage provider and have sought debt advice.
The Minister for Climate Change said: “By acting now with increased investment, we can prevent many individuals and families from entering possession proceedings and becoming homeless.”
James also acknowledged the contributions of external partners, sector experts, and supportive lenders in developing the scheme.
She emphasised the Welsh Government’s determination to use its powers to protect vulnerable households during the cost-of-living crisis and expressed gratitude towards those involved in shaping the new support scheme.
