Extra details on mortgage rescue scheme released

16/01/2009

The government has unveiled further details of its mortgage rescue scheme, first announced in September 2008, which it hopes will reduce the number of people who have their homes repossessed.

Under the terms of the plans, homeowners would be allowed to sell some or all of their property to their local housing association.

They would then be allowed to carry on living in their home, either through paying rent to the housing association if they sold up entirely, or being lent a cheaper equity loan to replace some of their mortgage costs.

Around 6,000 people are forecast to be helped by the scheme - which must be applied for.

It is likely that households most in need of the assistance - such as families with a disabled member or the elderly - will qualify.

Rising unemployment and other financial pressures from the credit crunch have made it more difficult for many to repay their mortgage loans.

The plan was originally formulated by the government, the National Housing Federation (NHF) and the Council of Mortgage Lenders.

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."

Tags; Housing Debt and Bills, Young Family Finances, Retirement Money Problems,

• Share
• 
• 
• Store
• 
• Follow
•