Summary


Mortgage Rescue Scheme


Summary: 

This is a scheme for local authorities to deliver. It applies to England only.

What is it and who is it aimed at?

This is one of a number of government schemes aimed at preventing repossessions. The Mortgage Rescue Scheme is aimed at the most vulnerable households, those with dependant children, elderly, disabled or long-term ill members, who would otherwise become homeless if repossessed. The aim is to allow them to remain in their home through one of two options: Government Mortgage to Rent – where the home is sold to a registered social landlord and the household remains as tenants of the property; or shared equity – where a portion of the home is sold to the registered social landlord and the homeowner is able to reduce his or her mortgage payments to an affordable level.

Core policy elements of the scheme and funding information

The scheme was announced in September 2008 as part of a £1 billion housing package. This is a £285 million scheme. The funding is split over two years, with the scheme scheduled to end in June 2011.

When is the scheme running from?

The scheme was announced in September 2008 and was formally launched in January 2009, following successful fast tracking through 80 local authorities in December.

Eligibility

To be eligible for the scheme, a household must include someone in 'priority need'. This could be:

  • A pregnant woman.
  • Someone with dependant children.
  • Someone who is vulnerable because of old age or a physical or mental impairment.

Applicants will also need to meet the following criteria:

  • The household must earn less than £60,000 a year.
  • The value of the home should not be higher than certain levels set for each region – applicants should ask their council about the level for their particular area.
  • They must not own a second home, including a home abroad.
  • The value of the mortgage and secured debts must not exceed the value of the property by more than 20 per cent. For example, if the home is worth £100,000, then the mortgage and secured debts must not equal more than £120,000.
How to apply

Households should apply through their local housing authority. The local authority will consider each case and try to find the most suitable and sustainable solution for the household.

Is there a deadline for applying?

No.

Further information

For further details of the full range of support and information available to households worried about their mortgage, go to Directgov.

For specific inquiries about this scheme, email the Mortgage Rescue Delivery team on mortgagerescue@communities.gsi.gov.uk. If you have a general query about the four Real Help Now areas of support, or the Real Help Now pages on info4local, use the 'tell us' form (see link below).

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