Mortgage rescue scheme
The Mortgage Rescue Scheme may be able to help you if you are an owner-occupier in mortgage difficulties and you are in danger of having your home repossessed.
How does it work?
If you are eligible for assistance, we will pass your details onto a Housing Assocation who may be able to provide you with an equity loan so that your mortgage outgoings will be reduced or, if this is not suitable, we may investigate the options of buying your home.
You would continue to live there as a tenant paying rent to the Housing Association, who are registered with the Welsh Government. Funding for the scheme is limited so it will not be possible to assist everyone. Help will be given to those in greatest need.
Is it for you?
The Mortgage Rescue Scheme will not be the best option for everyone. It may be possible for you to get back on track with your mortgage payments without having to sell your home. If you are having difficulty paying your mortgage you must talk to your lender and take independent advice to find out what options are available to you as soon as you think there may a problem. Organisations such as Shelter or Citizens Advice can help you.
Who can apply?
To apply for the Mortgage Rescue scheme you must answer yes to all of the following:
- Your home is in danger of being repossessed. That is, your lender has started legal action to repossess your home;
- You will be homeless if the property is repossessed;
- The property is your only or main residence;
- The property is clear of any legal reasons that would prevent it being sold; and
- You are unable to sell and buy a cheaper home locally.
Priority will be given to families and people who live in specially adapted housing.
If you are eligible, the Housing Association will look at the level of your debts, the cost of buying your home and any repairs or other works that are necessary. In some cases, it will not be possible to go ahead with your application if the costs are too high to make it practical. You have no right to assistance under the Mortgage Rescue scheme but you will be given a reason why your application cannot go ahead.
What should you do next?
If you think that the Mortgage Rescue Scheme could help you, you should contact us at the Housing Advice Section. We will assess your situation and then pass your details onto a Housing Association who may be able to help.
Alternatively, you can get in touch with Shelter Cymru on 029 2055 6120 who will pass your details onto us.
For independent housing advice
For housing advice and support services call Shelter Cymru on 0845 075 5005 or visit the Shelter Cymru website.
Advice is also available from your local Citizens Advice Bureau.