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

Mortgage Rescue Scheme

Recommended Posts

I was talking with the guy who oversees the local authority's (south coast) admin of the mortgage rescue scheme - this is where a housing association steps in to buy the property and clear the mortgage and other charges & secured loans, while the borrower remains as tenant at below market rent.

He said there had been 7 applications seriously considered by him in the previous 18 months. 2 had been approved. HAs do have a problem because upgrading the properties to meet habitation standards is expensive. He reckoned it was pretty much the same throughout the country and that the scheme would probably be withdrawn.

Finally, he agreed that covering second mortgages taken out for lifestyle purposes and equitable charges arising from credit card debt was crazy, but wotchagonnadooo!

Share this post


Link to post
Share on other sites

I have a friend who works in the finance department of a mid sized housing association in the North of England. The Housing Association participated in the Mortgage Rescue Scheme in spring this year with an allocation of 20 properties and this has since been increased to 50.

The grant rate received from the government is approx 60% of the acquisition cost and the house is rented back to the "owners" at approx 70-80% of the market rate.

Any loss incurred by the Housing association on the sale of the property can be recouped from the original grant. The value of the house will therefore have to fall by 60% for a housing association to lose any money.

It's a win win scenario. (apart from the taxpayer of course)

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 245 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

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.