Help to Stay – Wales: Our Expert Analysis

  • Our Wales based mortgage experts work tirelessly to get you the right deal.
  • We've helped hundreds like you secure their dream home and invest their money wisely.
  • Our 5* rated advisers are ready to hear from you today.

Get in touch for an initial fee free, no-obligation chat with an adviser about how we might be able to help.


Get in touch

The internet is not a completely secure medium, so we can't guarnatee the privacy of your data.

How would you like to be contacted?

Home 5 Mortgages 5 Help to Stay – Wales: Our Expert Analysis

Help to Stay – Wales: Our Expert Analysis

The guidance document on the Help to Stay – Wales scheme was published on 6th November 2023. We’re delving into this newly launched scheme by the Welsh Government. This equity loan is designed to assist individuals facing financial challenges with their mortgage payments. Have a read, listen, or watch as we break down the guidance to understand how this scheme works and who it might benefit.

Overview of the Help to Stay – Wales Scheme

Let’s break down how the Help to Stay scheme works. 

Who is it for? 

The Help to Stay – Wales scheme is designed to reduce the mortgage payments of struggling homeowners who’re facing financial difficulty. 

You could qualify if your household income is under £67,000 and your home is worth less than £300,000. You must also have sought assistance from your lender already and put together a budget plan with a debt adviser. 

How does it work? 

If you qualify, Help to Stay pays off some or all of your mortgage and replaces it with a secured equity loan that’s interest free for 5 years.

How much could you get? 

Up to 49% of your homes value. So up to £147,000. The amount you borrow is based on your mortgage advisers recommendation – in most cases, likely to be just enough to make your mortgage payments affordable (given your other commitments). 

An example of how the Help to Stay – Wales Scheme could benefit homeowners in Wales

Let’s consider an example. You have an income of £2,500 per month. Your outgoings are currently £2,500 per month too. And in June 2024, your mortgage payments will double, meaning your outgoings will increase to £3,000 per month.

Let’s say you have a 10 year old child, and you don’t want to be forced out of your home. There’s nothing else you can do to reduce your monthly outgoings, and you’ve sought advice from your lender and a debt counsellor.

Your existing mortgage payments are £500pcm, and they’ll increase to £1000pcm.

The Help to Stay – Wales scheme would potentially step in to pay enough off of the mortgage, so that your monthly payments remained affordable and you reduce the risk of defaulting on your mortgage, or potentially becoming homeless.

The mortgage balance would be replaced with an Equity Loan (initially interest free) which would ultimately have to be repaid.

Key Features of the Help to Stay – Wales Equity Loan

The equity loan is interest-free for the first five years, with interest charged at a rate of 2% above the Bank of England Base Rate thereafter.

Borrowers could be eligible for a loan of up to 49% of the property’s value, with the loan being directly used to repay the mortgage partially, or potentially, in full. It’s crucial to note that the equity loan is secured against the property, and failure to meet the terms could result in repossession.

When this loan is taken out, it will essentially replace an element of the mortgage. Monthly payments will reduce, but in return, you agree to the terms of the Help to Stay – Wales loan. Importantly you should know what this is an equity loan.

What are the main drawbacks of the Help to Stay – Wales Scheme?

There are 3 primary things you should be aware of when taking out this type of loan:

  1. Although initial interest is set at 0% – meaning no monthly payments, the interest payments rise drastically from year 6 onwards, meaning monthly payments will have to be made.
  2. The loan is still secured against your home, so if you fail to make these payments, or meet the terms of the loan, your property could be repossessed by the lender.
  3. This is an equity loan. Let’s say you borrow 10% of your homes value in 2023. In 2028, you apply to repay the loan. At that point, you will still owe 10% of your homes’ value – even if that’s more than the amount you initially borrowed.

Eligibility criteria

To qualify for the Help to Stay scheme, individuals must be facing or expecting difficulties in affording monthly mortgage payments – so they must be a homeowner, this isn’t available to home buyers. Household income should not exceed £67,000, and the property must meet specific criteria, including being in Wales, having a value under £300,000, and being free of legal actions like repossessions.

There is also a requirement that any applicants have sought advice from their lender, along the lines of the mortgage charter, and also have a budget plan from a debt councillor.

Application Process for Help to Stay

Eligible candidates must engage with their primary lender and seek advice from debt services. The application involves providing bank statements, income evidence, and a letter confirming debt advice. The Welsh Government then evaluates the property’s value through a surveyor and refers applicants to a mortgage advisor.

Repayments after year 5

The equity loan remains interest-free for the first five years, after which interest is charged at 2% per annum above the Bank of England base rate for the next ten years.

Here’s an example of what monthly payments could look like from year 6 onwards – remember, these are on an interest only basis, so the capital sum will remain due at the end of the term.

Example of a £50k equity loan:

Base rate (5.25% as at 3rd August 2023) + 2% = 7.25%

(This rate will change in line with Bank of England base rate changes).

£50,000 x 7.25% / 12 months = £302.08

Repaying the Help to Stay – Wales Loan

The loan becomes repayable either after 15 years, or when the property is sold. When it comes to repaying the loan, the amount you owe is calculated based on equity, not on the original loan amount. For this reason, the amount you pay back could be higher than what you borrowed.

It is possible to repay the loan in part, however, when you do this, a RICS valuation will be required. This normally costs around £500. Clearly, then if you do repay the loan in part, it would make sense to do this in big chunks.

Here’s an example of what part repayment could look like if your home increased in value.

Original property value: £200,000 |Equity Loan: £60,000 | % share of equity loan: 30%

New Market Value: £250,000 | Increase in equity loan value in line with new market value: £75,000

Borrower repays: £25,000 | Remaining equity loan: £50,000

New % share of equity loan: 20%

Considerations and Restrictions

Borrowers must obtain permission for structural changes to the property, as these could impact the equity and, consequently, the repayment amount. So whist the loan is in place, you don’t have total freedom to make improvements to the property.

The scheme acknowledges the challenge of repaying the equity loan at the end of the 15 year term and encourages borrowers to plan for it, suggesting using savings or investments, as a plan to create a repayment strategy to settle the loan at the 15 year point.

You should also consider how having this loan in place might restrict your ability to remortgage in the future. This is something your mortgage adviser will discuss with you before recommending the Help to Stay – Wales Scheme.


In summary, the Help to Stay scheme offers a temporary solution for homeowners in financial distress, providing relief through an equity loan. While it comes with terms and considerations, it aims to prevent repossession and homelessness. If you find yourself eligible and in need, explore the detailed guidance provided by the Welsh Government.

Remember, financial decisions are significant, so it’s always wise to seek personalized advice from professionals. Stay tuned for more insights into the financial world, and don’t forget to subscribe for regular updates. Catch you in the next episode. Bye for now!

What people are saying:

sam tapsellsam tapsell
17:17 11 Mar 24
Chris has been super helpful, always provided honest advice tailored to my situations. Highly recommend!
Ann-Marie JonesAnn-Marie Jones
17:47 18 Jan 24
Highly recommend Chris at Exley Financial Planning. He was really helpful and has walked through each stage carefully with patience and helped secure us a better rate on our mortgage.
Jasmine ScottJasmine Scott
20:21 18 Jul 23
I’ve had the pleasure of working with Chris now for over 6 years. He’s arranged my last three mortgages for me successfully. I’ve always found Chris to be highly efficient, and clear and open in all of his communications. He’s also taken the time to explain my options and be at the end of a phone. I trust him implicitly and would recommend him to anyone looking for sound financial advice and support regarding money matters.
Mike WilliamsMike Williams
16:37 18 May 23
Couldn't recommend a better financial planning advisor.Chris's help, advice and knowledge base was second to none.
Deborah NDeborah N
11:41 18 May 23
Chris was outstanding. His service was attentive, comprehensive and he displayed an impressive knowledge of his field. He was always easy to contact, friendly and returned calls and messages promptly. His help was invaluable. We are incredibly grateful for all his assistance and wouldn't hesitate to recommend him to others.
Jay ProbertJay Probert
12:02 07 Jul 22
Chris was referred to my wife an i by a neighbour. Despite conducting all communication online (emails/MS Teams calls) at all times Chris has remained personable and responsive. My wife and i are far from experts in this field but Chris' calming approach to the process has been most reassuring and would strongly recommend his services to others. Thanks Chris.
Alexia BowlerAlexia Bowler
08:27 25 Apr 22
We recently used Exley Financial Planning (Chris) for our mortgage and they were so professional, efficient and listened to our every need. We got some very good advice and felt confident that they had our interests at heart. I would use Exley Financial Planning again for anything finance related, and feel relieved we've now got someone who takes us through documents and processes (most of which are fairly confusing!), step-by-step. Thanks Chris!
bethan boddybethan boddy
11:55 08 Mar 22
Fantastic service from Chris.Chris helped me with the process of getting my mortgage from start to finish. As a first time buyer, I was clueless. Having Chris help me made the process a lot easier and he was able to explain information to me that I was unsure off.I highly recommend this company to anyone, especially first time buyers.
Ellen MorganEllen Morgan
08:26 31 Mar 21
I can’t thank Chris enough for all his help throughout my purchase. It hasn’t been an easy process buying my first home during a pandemic, but Chris made securing a mortgage a breeze! Chris is very knowledgable and was honest with me from the outset about what was affordable for me and the mortgages available. It has been a long process for me, but Chris is always available on the other end of the phone to answer any questions I had and kept me updated every step of the way. Brilliant service, I would highly recommend! Thank you Chris!
Rod DCRod DC
19:42 19 Aug 19
Chris has been absolutely fantastic in helping us secure our mortgage offer.Our own situation was a bit more complex due to work and contracts but Chris has worked extremely hard to find us a mortgage that suits us.The quality of service has been top notch from the first meeting. Communication has been excellent and we have been constantly updated on the situation and progress of all processes.It has been so worth employing the services of Exley and I cannot recommenced the service more.

What we’re talking about:

7 Mortgage Mistakes You Need To Avoid

Get in touch

The interenet is not a completely secure medium, so we can't guarnatee the privacy of your data.

How would you like to be contacted?

You May Also Like…

Weekly Market Update

Weekly Market Update

Our weekly market update is brought to you by our partners - Omnis Investments. This page is updated around Mid day...