Help to Stay scheme extended by Welsh government

To be eligible, homeowners must have explored all other measures offered by their mortgage provider and sought help through debt advice services.

Through the Help to Stay scheme, homeowners will receive free mortgage advice from specialist debt advisors to make sure all other options have been exhausted.

The Welsh government then provides a repayment of an existing mortgage balance of up to 49% of the property’s value through a low-cost equity loan, so that mortgage repayments are reduced to an affordable level.

The loan is secured against the property as a second charge mortgage, with a 15-year loan term and no payments due for the first five years.

After that, interest is charged on the loan at a rate of 2% per year above the Bank of England’s base rate for the remaining 10 years.

“The economic climate over recent years has presented many challenges to families across Wales. The number of mortgage arrears remains alarmingly high, and the risk of repossession leading to homelessness is a serious concern,” Ms Bryant said.

“Our long-term ambition to end homelessness in Wales cannot be achieved unless we continue to invest in early intervention, prevention and support.”

Shelter Cymru recently warned that families in Wales face an increased risk of homelessness after the UK government’s decision to freeze housing benefit levels.

Last year, research from thinktank the Bevan Foundation revealed that the number of households living in temporary accommodation in Wales increased by 18% during 2023-24.