A mortgage rescue scheme aimed at preventing thousands of vulnerable people from losing their homes to repossession has been officially launched today.
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 Government estimates that the scheme - devised last year by the National Housing Federation (NHF) and the Council of Mortgage Lenders (CML) - will help up to 6,000 households.
People applying for help under the scheme will have to meet set criteria to be eligible for assistance.
"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," explains David Orr, Chief Executive of the NHF.
"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."
He concludes: "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."IFAonline
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