Help to Stay - Wales: guidance for applicants

With rising interest rates, energy prices and living costs, many homeowners are finding it harder to keep up with their mortgage repayments.

The Help to Stay - Wales Scheme provides financial support to eligible homeowners in Wales who are struggling to pay, or are at risk of falling behind with, their mortgage.

Through the Scheme, you may be able to access free financial advice and a shared equity loan to reduce your monthly mortgage payments to a more affordable level. This support is designed to help you stay in your home while you work through your financial difficulties and avoid the risk of repossession or homelessness.

Step 1: You identify a problem

If your household is having or facing difficulty paying your mortgage, you may be eligible for support through the Scheme.

Step 2: Apply to the Scheme

Submit your application form and supporting documents. A dedicated case handler will review your information and confirm whether you may qualify for support. 

Step 3: Get debt advice

If you haven’t already received independent debt advice, we’ll refer you to a free, independent debt adviser. They’ll review your finances, including your income, spending, and any debts and make recommendations to help you manage your situation.

You’ll need to:

• share recent bank statements and income details;
• act on reasonable recommendations made by your adviser (for example, consolidating debts or prioritising essential payments).

Each person named on the mortgage must complete their own or joint debt advice session.

You can also find independent help and guidance at https://www.moneyhelper.org.uk.

Step 4: Independent mortgage advice (Phase 1)

During the early assessment of your application, we may recommend that you speak with an independent mortgage adviser. They’ll review your current mortgage, your affordability, and whether other mortgage products could meet your needs before you proceed with the Scheme.

Step 5: Property valuation

If your application is accepted, we’ll arrange for a qualified Royal Institution of Chartered Surveyor (RICS) to value your property. This confirms that it meets the Scheme’s criteria.

Step 6: Independent mortgage advice (Phase 2)

Once the valuation is complete, an independent mortgage advisor review will take place to confirm that the Scheme remains the most suitable option. 

If you received mortgage advice at Phase 1, we will refer your application back to the same advisor for a follow-up review, taking into account the outcome of the property valuation. 

If you did not receive mortgage advice at Phase 1, we will refer your property valuation to a qualified mortgage advisor for an initial review at this stage. 

The above ensures all applicants receive appropriate, independent advice before proceeding further with the Scheme. 

Step 7: Legal checks

We’ll appoint a conveyancer (from our approved panel) to complete the legal work. They’ll liaise with your mortgage lender to get consent for the new loan to be secured against your home.

Step 8: Completion

When legal checks are complete, funds are sent to your first charge lender to reduce your existing mortgage balance.

Step 9: Your Equity Loan begins

The Scheme’s loan is registered as a charge on your property. No repayments are required for the first five years.

Step 10: Year 5

We’ll contact you to arrange your direct debit for the start of your interest payments.

Step 11: Year 15

At the end of the 15-year term, the Equity Loan must be repaid in full.

How the scheme works 

The “equity” in your home means the difference between your property’s current market value and the total amount you owe on your mortgage and any other secured loans.

Through the Scheme, we may provide you with an Equity Loan of up to 49% of your property’s market value. This amount is paid directly to your first charge mortgage lender to reduce your mortgage balance and therefore your monthly repayments to a more affordable level.

The Equity Loan is secured as a charge against your property and remains in place until it is repaid in full or the property is sold, whichever happens first.

We’ll need written consent from your existing mortgage lender before the Equity Loan can be put in place, as their permission is required for us to register our charge on your home.

If your property is jointly owned, all owners must give consent and sign the application form before the Scheme can proceed.

Key Loan Terms

The main terms of the Equity Loan are:

Loan period: 15 years in total.

• Years 1–5: No interest is charged.
• Years 6–15: Interest is charged at 2% above the Bank of England Base Rate.
• Loan amount: Up to 49% of your home’s market value.
• Minimum loan amount: £10,000.
• Your main mortgage: Must be on a capital and interest repayment basis (not interest-only). In some cases, your lender may switch your mortgage from interest-only to repayment to make you eligible.

Voluntary repayments: You can repay part or all of the loan at any time (see “Repaying your Equity Loan” for details).

• Linked to property value:
  • The amount you repay depends on the same equity percentage you originally borrowed.
  • If your home’s value rises, the amount you repay will rise in line with that increase.
  • If the value falls, the amount you owe will fall too.
     
• Repayment strategy:
  • You’ll need a plan to repay the loan in full at the end of the 15-year term — for example, through savings, investments, or remortgaging. You can discuss this with your mortgage adviser during your application.

The Help to Stay - Wales Scheme is designed to work alongside the support already offered by your mortgage lender. You may be eligible for help if you meet the criteria below.

1. Household eligibility

1. You are in, or facing, mortgage difficulty. You may qualify if your household is: already missing payments or building up arrears, or 
   
   at risk of missing payments soon — for example, because of a change in circumstances such as an increase in your mortgage rate or loss of income.
    
2. Your total household income is £67,000 or less:

• The combined gross income of everyone living in your home must not exceed £67,000 per year.

2. Property eligibility

1. Your home is in Wales and is your main residence. Your property must:

• be located in Wales, and
• be your only or main home.

You cannot apply if you own or part-own any other property.

2. Your home’s value does not exceed £300,000
   
   The property must be valued at £300,000 or less.
    
3. You must disclose any existing legal action

If there is any current or pending legal action that could affect your home (for example, repossession proceedings or court orders), you must tell us about it.

This helps us assess whether the property is suitable for the Scheme on a case-by-case basis.

Have the consent of all parties

3. Second Charges

If your home has a second charge registered against it, your application for an Equity Loan will still be considered on a case-by-case basis. Part of that consideration will include the following: 

1. Your combined primary mortgage, second charge debt and Equity Loan remain within the Scheme’s loan to value parameters, which is 100% maximum of the total value of your home.
    
2. The Equity Loan repayments are deemed affordable by the independent Financial Advisor.
    
3. The second charge debt must be repayable within 5 years and prior to the onset of Equity Loan interest payments.

If you are struggling with, or worried about, your mortgage payments, contact your mortgage lender as soon as possible. Your lender may have options available to help you manage your situation, such as a temporary payment plan or a change to your mortgage terms.

If you need help contacting your lender, the Scheme’s team can assist you in making contact and explain what support may be available.

Before applying to the Scheme, you are encouraged to discuss your situation with your lender and explored all the options they offer.

Before you apply, please check that you meet all the eligibility criteria listed above.

When completing your application, make sure all the information you provide is accurate, complete and up to date.

You’ll also need to provide supporting documents, including:

• Bank statements covering the last 6 months for all homeowners and anyone aged 18 or over who lives in the property. These should show all income and outgoings.
• Proof of income — such as payslips, benefit statements, or self-assessment tax returns — for everyone aged 18 or over who owns or lives in the property.

Applying to the Scheme will not affect your credit score.

You can submit your application by email or post (contact details are in the application form). Once received, your application will be assigned to a dedicated case handler who will be your main point of contact.

Your case handler will:

• confirm receipt of your application;
• let you know whether you qualify; and
• guide you through the next steps in the process.

If you don’t qualify, you can reapply later if your circumstances change.

In some situations, such as where you have an interest-only mortgage, your mortgage term has ended, or your circumstances have recently changed (for example, following a separation), we may recommend that you speak with an independent mortgage adviser.

This step helps ensure the Scheme is both affordable and appropriate for your situation before moving forward with a property valuation.

We work with a panel of approved independent mortgage advisers. You’ll receive their contact details so you can instruct one directly. When you contact them, mention that you are applying to the Help to Stay Scheme, they will then notify us and we’ll confirm that the Scheme will pay for their advice.

Once you’ve engaged an adviser, they will:

• review your income, expenses, and debts;
• check your mortgage redemption statement and any debt repayment plans; and
• assess whether other mortgage products on the market might better suit your circumstances.

If your adviser identifies a better alternative to the Scheme, you’re free to follow their recommendation and the Scheme will still cover their fee.

If your adviser recommends proceeding with the Scheme, they’ll confirm this to your case handler, who will then review their report to ensure it meets all Scheme requirements.

Once approved, we’ll issue your Equity Loan Offer Letter, setting out the details of the loan we’re offering.

Once your application has been reviewed and you’re found to be eligible, we’ll arrange for a qualified Royal Institution of Chartered Surveyor (RICS) to carry out a valuation of your home.

This helps confirm that your property meets the Scheme’s criteria and determines the amount of support available.

The cost of the valuation is covered by the Scheme and you’ll receive a copy of the valuation report.

Your case handler will discuss the results with you and explain the next steps.

If your property’s value falls outside the Scheme’s parameters, we’ll let you know and signpost you to alternative sources of support.

Once your valuation is complete and acceptable, the next step is a second review with a mortgage adviser.

If you have already received independent mortgage advice in Phase 1, your application will be referred back to the same advisor for a follow-up review. This review will take account of the property valuation and confirm that the Scheme remains the most suitable option for your circumstances. 

If you did not receive mortgage advice at Phase 1, we will refer your valuation and application details to an approved mortgage adviser at this stage. They will review your situation, assess affordability and confirm whether the Scheme is appropriate for you. 

Copies of your final Equity Loan documents will be shared with:

• you;
• your mortgage adviser (to help explain the offer and answer any questions), and
• your conveyancer (to progress the legal completion).

A conveyancer is a legal professional who handles property transactions. Once you reach this stage, we’ll instruct a conveyancer from our approved panel to act on your behalf. They will:

• carry out legal and Land Registry checks on your property,
• prepare and arrange for you to sign the necessary documentation, and
• obtain consent from your mortgage lender for the new Equity Loan charge.

The conveyancer will also act for the Scheme, which is called a dual instruction and common when both parties’ interests are aligned.

The Scheme covers conveyancing costs up to £1,000 + VAT. If the total legal costs are higher, you’ll need to cover the difference.

Once all legal checks are complete and there are no issues, your conveyancer will contact your case handler to confirm when you’d like your Equity Loan to begin and when funds should be released to your mortgage lender.

On that date, the Scheme will transfer the loan funds to your conveyancer, who will:

• complete the legal transaction;
• register the Scheme’s charge against your property at the Land Registry; and
• send the funds to your first-charge lender to reduce your mortgage balance.

If you later decide to remortgage your property with a different lender, a Deed of Postponement will be required to confirm that the Scheme’s charge remains in second place behind your new lender. Your conveyancer will explain this process if it applies to you.

Your Equity Loan is interest-free for the first five years. After the fifth anniversary of your loan, interest payments will start. We’ll write to you before this happens to request a direct debit mandate, so payments can begin smoothly.

Interest is charged at 2% above the Bank of England Base Rate, and is collected monthly. Your interest payments may increase or decrease in line with changes to the Bank of England Base Rate. If this happens, we’ll give you at least 14 days’ notice before your payment amount changes.

We’ll confirm all changes in writing, along with any updates to your direct debit.

Example Payment Schedule

Interest is the amount charged for borrowing the money, it does not go toward paying off the loan balance itself. You’ll need to make sure you have a plan to repay the full Equity Loan at the end of the term.

The amount of monthly interest is worked out using this formula:

Equity Loan amount × interest rate ÷ 12

Example

If you borrowed £50,000 and the current base rate is 5.25%, the total interest rate would be 7.25% (base rate + 2%).

£50,000 × 7.25% ÷ 12 months = £302.08 per month

Your mortgage adviser can help you create a repayment plan for these interest payments and for repaying the loan in full at the end of the 15-year term (for example, through savings, investments, or refinancing).

Important: Your home may be repossessed if you do not keep up with mortgage or other debt payments secured against it.

Repaying Your Equity Loan

When you accept an Equity Loan through the Scheme, you agree to repay it in full by the end of the 15-year loan term, along with any interest due.

• You’ll need to repay the full amount of your Equity Loan if any of the following happen:
• The 15-year loan term ends;
• You sell your home (please contact us before selling, as we’ll need to confirm the repayment process and calculate the amount due); or
• We request full repayment because the loan terms have not been met

Early Repayment Option

You can choose to repay your Equity Loan in full at any time during the 15-year term. To do this, you must arrange for an independent Royal Institution of Chartered Surveyor (RICS) to assess your property’s current market value.

This valuation will determine the amount you need to repay, based on the same equity percentage you originally borrowed.

Part Repayment Option

You cannot make regular monthly payments to reduce the loan balance itself, but you can make a one-off part repayment at any time during the loan term.

To make a part repayment:

• Give the Scheme at least 4 weeks’ notice; and
• Arrange your own Royal Institution of Chartered Surveyor (RICS) valuation to confirm your property’s current market value.

Once your payment has been received, the amount will be deducted from your current Equity Loan balance, and your remaining equity share percentage will be recalculated.

Example

Original property value: £200,000

Equity Loan: £60,000 (30%)

New property value: £250,000

New value of 30% share: £75,000

You repay: £25,000

Remaining loan balance: £50,000

New percentage share: 20%

This example shows how repayments are always based on the current market value of your home.

If your home’s value increases, the amount you repay will rise in line with that increase.

If the value falls, the amount you owe will decrease too.

Application timescales

We aim to process all applications as quickly as possible. However, timescales may vary depending on your individual circumstances and the legal work required to secure the Scheme’s loan.

To help avoid delays, please make sure you provide all requested information and documents promptly to:

• the Scheme team; 
• your mortgage adviser; and
• your conveyancer.

If you have already received notice of intended repossession, please make this clear to your debt adviser and as part of your application. Your debt adviser will be able to provide interim guidance while the application proceeds.

If you’ve already received a repossession notice, let your debt adviser and your case handler know straight away.

Your adviser can provide guidance while your application is being reviewed.

Making Changes to Your Property

If you plan to sell, transfer ownership, or make structural changes to your property, you must contact the Scheme first for permission.

We will only approve structural alterations if they are required for medical reasons. If approved, and the alteration increases your property’s value, we will disregard the portion of that increase that relates solely to the medical adaptation when calculating future loan repayments.

You do not need permission for standard home improvements such as redecorating or fitting a new kitchen or bathroom.

For general information about eligibility, the application process, or the Scheme, you can contact the team at:

applications@helptostay.wales

You can also find free, independent debt advice at https://www.moneyhelper.org.uk, or contact your mortgage lender directly to discuss your situation.

We always try to give you the best service, but sometimes we can get it wrong. If we’ve got it wrong enough that you want to make a formal complaint, let us know by contacting us.

We always aim to provide a high-quality service, but if you’re unhappy with how we’ve handled something, please let us know.

You can contact us at:

How We Handle Complaints

We’ll always try to resolve your concern as quickly as possible.

We aim to reply within five working days, but if we need more time, we’ll keep you updated and provide the name of the person handling your case.

If we need to carry out further investigation, you’ll receive a written response within eight weeks.

If your complaint relates to a third party (for example, a mortgage adviser or conveyancer), we may forward your complaint to them and let you know we’ve done so.

If you haven’t received a final response after eight weeks, we’ll explain the reason for the delay and advise you of your right to contact the Financial Ombudsman Service.

If You’re Still Unhappy

If you remain dissatisfied after our final response, you can refer your complaint to the Financial Ombudsman Service: