First Minister urged to improve help for homeowners struggling to pay their mortgage

North Wales Member of the Senedd (MS) Mark Isherwood has called on the Welsh Government to increase support for homeowners at risk of losing their properties due to rising mortgage costs.

During Tuesday’s meeting of the Welsh Parliament, Mr Isherwood questioned the First Minister about measures being taken to assist struggling mortgage holders.

He highlighted a concerning rise in repossession cases and criticised the limited impact of the Welsh Government’s existing mortgage support scheme.

“Ministry of Justice data shows a rise in mortgage possession claims in Wales during Quarter 3 of last year,”

Mr Isherwood said. “Similarly, Shelter Cymru’s snapshot from October indicates an increase in cases linked to mortgage arrears and possession proceedings. Despite the urgency of the issue, the Welsh Government’s Help to Stay Wales Shared Equity Loan Mortgage Support Scheme approved only five loans in its first year.”

He further questioned the First Minister on whether the Government would implement more robust interventions, including ring fenced funding for mortgage rescue schemes.

In response, the First Minister linked the current struggles to “Liz Truss’s little venture into an ideological world,” blaming her tenure for the financial instability impacting homeowners.

Mr Isherwood, however, countered that the markets rebounded following Ms Truss’s departure and argued that the global cost-of-living crisis, rather than political ideology, was driving interest rate increases.

Speaking after the session, Mr Isherwood expressed frustration at what he called the First Minister’s lack of focus on the immediate crisis facing homeowners.

“The First Minister’s attempt to score political points on an issue devastating lives across Wales was frankly shocking,” he said. “Even after I pointed out that the cost-of-living crisis and global factors were behind rising interest rates, she dismissed calls for meaningful action and shifted the conversation to an unrelated home purchase scheme.”

The Welsh Government’s Help to Stay Wales scheme was introduced in 2023 with £40 million in repayable funding.

However, uptake has been minimal, raising questions about its accessibility and effectiveness.

Mr Isherwood is urging the Government to explore more comprehensive measures, including dedicated funding for mortgage rescue schemes, to address the growing risk of repossessions in Wales.