Get help paying your mortgage with a Help to Stay shared equity loan

The Help to Stay – Wales scheme can offer support to those who are either:

• having financial difficulty paying their existing mortgage
• facing financial difficulty paying their existing mortgage

The Help to Stay – Wales scheme offers support to homeowners in the form of a shared equity loan. 

A shared equity loan is where a lender agrees to give you a loan alongside your existing mortgage lender in return for a share of any profits when you sell your house or repay the loan. 

A shared equity loan can help reduce existing monthly mortgage payments to an affordable level and allow you to continue to own and live in your home. It will also give you time to resolve your financial issues, reducing the risk of repossession.

As part of the application process, eligible applicants will be offered the assistance of an Independent Financial Advisor who will carry out a financial assessment. The assessment will be based on your household’s specific circumstances and will help to determine the most appropriate option available to you.

If the most appropriate option is a shared equity loan and you are eligible, your application will be progressed under the scheme.

1. Check eligibility

Before proceeding, you should ensure that you meet the scheme's eligibility criteria.

2. Speak to your current lender

If you meet the eligibility criteria, you should get in touch with your existing mortgage lender to see if they can help you.

3. Get debt advice

If your existing mortgage lender is unable to help, you should seek debt advice from a debt advice agency who will work with you to produce a debt solution plan.

4. Submit an application

If you have completed all of the steps in the checklist, you can now apply to the scheme.

The Help to Stay - Wales scheme aims to work alongside support offered by your mortgage lender and in line with the UK Mortgage Charter.

To be eligible for the scheme, you must:

• be having difficulty, or facing difficulty paying your mortgage 
• be at risk of losing your home
• only have your existing mortgage secured against your property
• have a total household income of less than £67,000 per year

In addition, the property must be:

• in Wales
• valued at less than £300,000
• the only property that you own

You will not be eligible for the scheme if:

• you have more than one loan secured against your home, for example a second charge or a charging order
• your application is not completed by all the home owners

Before applying for the scheme, you must contact your existing mortgage lender to discuss your financial situation and to find out if they can help you.

If your existing mortgage lender is unable to help, you should then seek free advice from a debt advice agency who will review your financial situation and produce a debt solution plan.  This plan will include: 

• information about any debt solutions they think are right for you and how you can set them up
• a monthly budget plan so you know what you have to spend
• advice on dealing with the people you owe money to
• ways you can increase your income or reduce your spending
• information about what would happen if you did not pay your debts

When you apply to the scheme you must include your debt solution plan with your application. 

Help to Stay – Wales works closely with the debt advice agency PayPlan, however you can use any free debt advice agency.

The Money Helper website provides other options to find free debt advice service.

To apply, you must complete and submit the Help to Stay application form. 

Information about how to complete the application form can be found in the form itself.

Before submitting an application you must:

• have read and followed the guidance in the Help to Stay - Wales: guidance for applicants
• have received debt advice from a debt advice agency and received your debt solution plan from them
• ensure that all the registered owners of your home, have signed the application form

If you have any questions about the scheme guidance or completing the application form, please contact us at applications@helptostay.wales.

For further information and general enquiries please contact us at:

Further information about the application process for the Help to Stay scheme and the support available can also be found in the Help to Stay - Wales: guidance for applicants.