Jump to content
House Price Crash Forum
Sign in to follow this  
dapperdave

Slow Start For Mortgage Rescue Scheme...

Recommended Posts

http://news.bbc.co.uk/1/hi/business/8073633.stm

Only two households in England have been given help in the first four months of a £285m mortgage rescue scheme, figures show.

About 1,084 households - fearing mortgage repayment difficulties - approached local authorities in April alone, government data shows.

But only one contract was signed in April and one in March, both by householders in the east of England.

It takes three to five months to complete a case, the government said.

Other claims are in the pipeline, the figures show.

The scheme allows not-for-profit housing associations to buy homes from people struggling to pay their mortgage and then allows them to continue living there by paying "affordable rent".

The government said the scheme - introduced across England in January - could help up to 6,000 households which might otherwise face repossession. The scheme initially amounted to £200m, but an extra £85m was added in April's Budget, to help other struggling borrowers.

Northern Ireland, Wales and Scotland have, or soon will have, their own initiatives in place.

Breakdown

While 1,084 households approached local authorities for help in April, less than half - or 452 - were eligible. To qualify for the scheme, you have to be at risk of repossession and be either elderly, disabled, pregnant or have dependant children.

Of the 452 households that were eligible, 139 households applied to join the scheme in April. A total of 376 applications - including applications made earlier in the year - are now under consideration.

More than 70 of those 376 applications are in the final stages of the process, a spokesman for the Department of Communities and Local Government (DCLG) said. This means that any repossession action against them by their lender has been frozen.

On average, 1,000 households have approached local authorities across England every month this year in search of help. Even though they might not have been eligible for the home rescue scheme, they had benefited from free advice, the DCLG spokesman said.

The first person to be successful in an application was single mother Emma Whitford, 40, of Fairstead. She was struggling to meet her mortgage commitments after ill health prevented her working.

She went to King's Lynn and West Norfolk Borough Council, which approached housing association Orbit First Step for help. She now rents back her home where her family has lived for two years and the three children can remain in the same schools.

Some 78% of the 303 councils taking part submitted April data to the DCLG. Some local authorities in England have delayed setting up the scheme.

Typical Labour....

Share this post


Link to post
Share on other sites

Fool proof way into Social Rented Accomodation? Secure tenancy and cheap.

Spend 10 times your annual salary on a home of your dreams, then get some mug Housing Association to buy it off you and rent it back to you at a fraction of the cost. Blinding!

What could possibly go wrong? <_<

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   287 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.