Menu
16/01/2009
New Mortgage Rescue Scheme Will Save Thousands From Repossession
A new mortgage rescue scheme which will help thousands of vulnerable people from losing their homes and avoid the nightmare of repossession will be officially launched today.
Under the nationwide scheme not-for-profit housing associations will buy homes from people struggling to pay their mortgage at an independently assessed market price.
Successful applicants would be allowed to remain in their property either as tenants paying an affordable rent or as owners after receiving an equity loan from a housing association to help cut their mortgage costs. Once their financial situation improved, they can pay back the loan in part or full.
The scheme, devised last year by the National Housing Federation (NHF) which represents England's housing associations and the Council of Mortgage Lenders (CML), will help up to 6,000 households, the government estimates.
People applying for help under the scheme will have to meet a set criteria to be eligible for assistance. To qualify people are likely to have a family with dependent children, or with a disabled member, or to be elderly or vulnerable in some other way.
People will have to initially apply to their local authority for help, their finances will then be assessed by a designated agency, such as the Citizens Advice, before the property is valued and the housing association steps in to buy it.
It is hoped that the scheme will also serve to undermine the growing number of unregulated firms which buy properties from people struggling to meet their mortgage payments for well below the market rate and only allow them to remain in the property on a short-term tenancy.
The new scheme is being rolled out nationwide this month, but some housing associations already run their own initiatives along similar lines.
NHF Chief Executive David Orr said: "The mortgage rescue scheme will save thousands of vulnerable families from the nightmare of having their homes repossessed and give them the long-term stability they need.
"It will allow families to stay in their home either as rent paying tenants or as owners after receiving an equity loan from a housing association to help cut their mortgage costs. They will have the opportunity to repay the loan once their circumstances improve or when they sell their home".
"This scheme will also serve to undermine those shadowy companies currently making money out of people's misfortune by buying their properties at substantially less than the going rate - and then only letting them stay on a short-term tenancy basis."
(CD/JM)
Under the nationwide scheme not-for-profit housing associations will buy homes from people struggling to pay their mortgage at an independently assessed market price.
Successful applicants would be allowed to remain in their property either as tenants paying an affordable rent or as owners after receiving an equity loan from a housing association to help cut their mortgage costs. Once their financial situation improved, they can pay back the loan in part or full.
The scheme, devised last year by the National Housing Federation (NHF) which represents England's housing associations and the Council of Mortgage Lenders (CML), will help up to 6,000 households, the government estimates.
People applying for help under the scheme will have to meet a set criteria to be eligible for assistance. To qualify people are likely to have a family with dependent children, or with a disabled member, or to be elderly or vulnerable in some other way.
People will have to initially apply to their local authority for help, their finances will then be assessed by a designated agency, such as the Citizens Advice, before the property is valued and the housing association steps in to buy it.
It is hoped that the scheme will also serve to undermine the growing number of unregulated firms which buy properties from people struggling to meet their mortgage payments for well below the market rate and only allow them to remain in the property on a short-term tenancy.
The new scheme is being rolled out nationwide this month, but some housing associations already run their own initiatives along similar lines.
NHF Chief Executive David Orr said: "The mortgage rescue scheme will save thousands of vulnerable families from the nightmare of having their homes repossessed and give them the long-term stability they need.
"It will allow families to stay in their home either as rent paying tenants or as owners after receiving an equity loan from a housing association to help cut their mortgage costs. They will have the opportunity to repay the loan once their circumstances improve or when they sell their home".
"This scheme will also serve to undermine those shadowy companies currently making money out of people's misfortune by buying their properties at substantially less than the going rate - and then only letting them stay on a short-term tenancy basis."
(CD/JM)
Related UK National News Stories
Click here for the latest headlines.
05 August 2005
Housing market showing ‘modest improvement’
The housing market is showing a “modest improvement,” the Halifax has reported. House prices increased by 0.2% in July, following a similar rise in June, the Halifax reported. However, the annual rate of house price inflation has continued to fall, dropping to 2.3% in July – the lowest rate of growth since April 1996.
Housing market showing ‘modest improvement’
The housing market is showing a “modest improvement,” the Halifax has reported. House prices increased by 0.2% in July, following a similar rise in June, the Halifax reported. However, the annual rate of house price inflation has continued to fall, dropping to 2.3% in July – the lowest rate of growth since April 1996.
21 April 2009
Darling To Announce £1bn Housing Support Package
Chancellor Alistair Darling is expected to announce a £1bn package to support the housing market in tomorrow's Budget. Mr Darling will also extend the stamp duty holiday until the end of the year on properties under £175,000. The government is also expected to provide money for construction sites where work has stopped due to the recession.
Darling To Announce £1bn Housing Support Package
Chancellor Alistair Darling is expected to announce a £1bn package to support the housing market in tomorrow's Budget. Mr Darling will also extend the stamp duty holiday until the end of the year on properties under £175,000. The government is also expected to provide money for construction sites where work has stopped due to the recession.
11 November 2013
Over 2,000 People Use 'Help To Buy' Scheme
More than 2,000 people have put in offers on homes under the Help to Buy scheme, totalling £365 million of new mortgage lending. The applications are backed by a 'decision in principle' by RBS and Lloyds, the first two participating banks, for 95 per cent mortgages. Ten of the 2,384 applications have already completed.
Over 2,000 People Use 'Help To Buy' Scheme
More than 2,000 people have put in offers on homes under the Help to Buy scheme, totalling £365 million of new mortgage lending. The applications are backed by a 'decision in principle' by RBS and Lloyds, the first two participating banks, for 95 per cent mortgages. Ten of the 2,384 applications have already completed.
13 March 2008
Budget Will Help First-Time Buyers
Thousands of first-time buyers and key workers could see their purchasing power boosted by up to 50% with new home loans announced in the Budget. The Chancellor announced that from April this year two new equity loans will be available through the Government's shared equity scheme Open Market HomeBuy (OMHB).
Budget Will Help First-Time Buyers
Thousands of first-time buyers and key workers could see their purchasing power boosted by up to 50% with new home loans announced in the Budget. The Chancellor announced that from April this year two new equity loans will be available through the Government's shared equity scheme Open Market HomeBuy (OMHB).
19 April 2013
Compensation Possible For 30,000 Santander Customers
The UK's second largest mortgage provider, Santander, have said some 30,000 of its customers may be due compensation, due to errors made in 2008.
Compensation Possible For 30,000 Santander Customers
The UK's second largest mortgage provider, Santander, have said some 30,000 of its customers may be due compensation, due to errors made in 2008.
-
Northern Ireland WeatherThis Evening and Tonight:Showers, scattered in the evening, will clear by midnight leaving the night dry with clear spells. Perhaps a touch of ground frost. Cloud will spread east towards morning. Minimum temperature 2 °C.
