Mortgage Rescue Scheme
The Mortgage Rescue Scheme,amongst other recent
schemes,
Support for Mortgage Interest
and
Homeowner Mortgage Support, has been
introduced by the Government to assist homeowners when all of the
other options made available by the lender have been
exhausted.
The Government has made available a £285m
package of measures designed to prevent some of the most vulnerable
families from losing their homes
To be eligible for the scheme someone in your
household must be in ‘priority need’. A priority need is some
circumstance which would make you more vulnerable or disadvantaged
if you were made homeless, for example if there were dependent
children in the household or someone was expecting a baby or is
vulnerable because of old age or a physical or mental
impairment.
The value of the property in question must be
in the region of £155,000 and the household’s income must not be
more than £60,000.
The Mortgage Rescue Scheme, being run through
Malvern Hills District Council together with its partnering
agencies Elgar Housing Association, the Citizens Advice Bureau and
its Registered Social Landlord (RSL) partner West Mercia Group, has
two elements:
- Shared Equity Loan – designed to help
households who have experienced payment shocks and need assistance
in paying their mortgage.The RSL can provide a loan to pay off a
proportion of the mortgage, reducing the mortgage to a more
affordable level and in return the RSL receives a share of the
property’s equity.
- Government Mortgage to Rent
- designed to help those who are unable to meet lenders’
requirement, eg. those on unstable, low incomes with little chance
of sustaining a mortgage. The RSL will pay off the mortgage
completely by buying the property, and the household remains in the
property as a tenant of the RSL with a shorthold tenancy paying a
rent which would be at a lower level than the ‘market rate’.
Assistance may be available for people in
negative equity so long as they meet all of the other eligibility
criteria and the value of their mortgage, plus any loans taken out
against the property, is less than 120% of the value of the
property.
If you think that you meet the criteria and
need assistance, please contact Gemma Davies at Elgar
Housing Association or telephone 01684 579354.
