Mortgage Rescue Scheme helps homeowners

Under the new Mortgage Rescue Scheme (MRS), Tamworth Borough Council’s Housing Advice Team is helping residents with mortgage payment problems to avoid repossession and stay in their homes.

The government, in response to worsening economic conditions, has invested in a number of measures and tools to provide assistance to families and vulnerable residents at risk of repossession.  At the forefront is the Mortgage Rescue Scheme.

It targets families with dependent children, elderly and vulnerable groups at risk of repossession (that is, their lender is actively seeking possession of the property through the courts) who can no longer afford their repayments, and who would be entitled to homelessness assistance if repossessed.

The scheme offers two possible solutions to prevent home owners within a certain criteria being repossessed by either:-

• A shared equity loan by a housing association to reduce your monthly payments or
• The government mortgage-to-rent where a housing association buys your home for 97% of its market value
  
  Nationally 330,000 home owners have received help and advice with their mortgage via such schemes.
  
  ”The current economic climate has forced many families to get into difficulties with their mortgage payments. 
  
  “Its good news the government has addressed this issue by introducing these schemes to help homeowners.
  
  “Anyone having problems paying their mortgage should contact their mortgage provider immediately.  Ignoring the problem by burying your head in the sand is not an option, it won’t go away it will only get worse.
  
  “We want Tamworth residents to know it’s never too late to get help. Anyone struggling to pay their mortgage should consider these options as soon as possible to help relieve their financial pressures and hopefully avoid leaving their home”, explained Councillor Mary Oates.
  

Those with a temporary income reduction may be entitled to Homeowner Mortgage Support (HMS).  It allows the homeowner’s lender to delay some of the monthly interest payments on a mortgage for up to two years. The money will have to be paid back eventually but it takes the immediate pressure off the homeowner. 

Facing the prospect of repossession can be frightening, however there is a lot of help available from the government, lenders and Tamworth Borough Council’s Housing Advice Team.

For more information on all available solutions visit www.direct.gov.uk/mortgagehelp or

http://www.citizensadvice.org.uk/

Alternatively if residents prefer to speak to someone directly they can contact the Tamworth Borough Council’s Mortgage Rescue Champion on 01827 709459.