Government scheme to avoid home repossession

The Government is rolling out a new mortgage rescue scheme to help struggling families avoid the risk of home repossession.

 

The £200 million scheme is targeted at the most vulnerable households and with incomes of less than £60,000 a year.

 

This would include people who are elderly, disabled or those with children.

 

 To  avoid repossession households will have to apply directly to their local authority for two options to help them remain in their homes.

 

They will either have to sell a share of their home to a housing association enabling a reduction in their monthly mortgage payments, or they can sell their entire home to a housing association and remain in the property as tenants paying a subsidised rent. 

 

The scheme is expected to help up to 6,000 households avoid repossession over the next two years. 

 

The scheme, which is expected to help up to 6,000 households avoid repossession over the next two years, is being expanded to all local authority areas in England from today, following its early introduction by 80 councils in December.

 

Housing Minister Margaret Beckett said:  “We know that some families are worried about their mortgage payments right now, and we are determined to do everything possible to ensure repossession is always a last resort. For the most vulnerable households, the mortgage rescue scheme will be available across England to help ensure they can remain in their homes.

 

“This is part of a range of measures the Government is putting in place to help households at risk of repossession in the current climate. As well as expanding free debt and legal advice, we have increased the support available for people who lose their jobs, and are introducing the option for homeowners to defer part of the loan to give them the time they need to get back on their feet.

 

“Whatever the situation, the clear message for households struggling with their payments is to speak to their lender as soon as possible.”