If you are a homeowner and are worried about repossession or keeping up with your mortgage repayments you should first read the help and advice available from DirectGov: Keeping Your Home.
Mortgage Rescue
The current economic climate is creating a challenging environment for everyone. Repossession and the threat of homelessness can have a myriad of harmful and lasting effects on families.
Mortgage Rescue is a Government scheme funded by the Homes and Communities Agency (HCA) and has been brought in to assist some existing owner occupiers.
There are two forms of Mortgage Rescue available:
- Shared Equity
- Mortgage to Rent
Am I eligible?
The main requirement is that applicants should have a total household income of less than £60,000, and be at risk of repossession without intervention. There are other eligibilty criteria that you mut meet and these wil be explained as you go through the process.
To apply you must first contact your Local Authority. They will then put you in touch with a Money Advisor to discuss you current circumstances in more detail.
They will also need to confirm that the following conditions are met:
- That your lender has exhausted all hardship options and supports the application for mortgage rescue.
- An up-to-date financial statement from Money Advice demonstrates that Mortgage Rescue is potentially viable.
- You own the home in question.
- You are at risk of homelessness through mortgage repossession.
- You are eligible for homelessness assistance.
- You are in priority need.
- There are no outstanding charges, other than those proposed to be cleared by Mortgage Rescue, or ownership disputes on the property.
- Your income is less than £60,000 per year.
- The estimated value of the property is less than £155,000.
- Your home is appropriate for continued occupation.
- A request can potentially be made to your Lender to freeze the interest and any repossession action.
- You have at least 3% equity in your home after taking into consideration all debt secured upon the property.
Should you meet all the relevant eligibility criteria you will then go to the next stage of the procees which will be fully explained as your application proceeds.
