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Mortgage rescue and repossessions
What is the Mortgage Rescue Scheme?
The Government Mortgage Rescue Scheme was introduced in
January 2009 and is aimed at helping the most vulnerable
households facing repossession to remain in their homes. The
eligible homeowners may be given the choice of two options:
- Shared Equity - Housing Association
provides you with an equity loan enabling your mortgage
repayments to be reduced.
- Mortgage to Rent - Housing Association
purchases your property and you pay rent to the Housing Association
at a level you can afford.
What should your mortgage lender do to help you?
Lenders should only be looking at possession proceedings as a
last resort. You can only be considered for the Mortgage
Rescue Scheme when your lender has exhausted all the other options
including:
- reduced monthly payments
- spread the repayment of the total mortgage owed
- offer of a better loan rate
- allow you time to sell your home
Who is eligible for the Mortgage Rescue Scheme?
To be eligible, you must be threatened with homelessness because
of mortgage arrears, be eligible for housing assistance and be in
priority need as determined by the Housing Act 1996 and
Homelessness Act 2002. In addition, there are other
conditions such as the value of the property, your total household
income, the amount of equity you have on the home etc. You
must also be able to afford the Mortgage Rescue Scheme.
How do I apply for the Mortgage Rescue Scheme?
First you need to have an appointment with the Housing Options Officer.
Your officer will interview you to find out all your
circumstances and will ensure that your lender has done everything
possible to assist you. We will then refer you for money and
debt advice provided by the Redbridge
Citizens Advice Bureau (CAB).
Once you have been assessed for the Mortgage Rescue Scheme and
it is agreed as a viable and affordable option for you, we will
refer your application to the Housing Association who will finalise
and implement the Mortgage Rescue.
Metropolitan Home Ownership
is the lead provider for Mortgage Rescue in Redbridge and they work
in partnership with other Housing Associations in the area.
How long will the process take?
This is difficult to assess as each case is different, but we
will be liaising with your lender at all times to ensure that your
property is not repossessed until the Mortgage Rescue process is
completed.
Despite all the efforts, the Mortgage Rescue Scheme will not
provide a solution for every household facing repossessions.
Even if you feel that you do not qualify for the Mortgage Rescue
Scheme you should still contact us so that other alternatives can
be considered.
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