Sunday, December 14, 2008
Mortgage rescue scheme at work
Arthur Stone is believed to be the first person in Britain to have been rescued by a housing association from having his home repossessed. The 53 year old postman, who has mild mental retardation, bought his council house with a £17,000 mortgage and a £10,000 loan for renovations. But his debts have spiralled out of control, and he now owes GE Money £75,000, as well as £25,000 in unsecured debt. Trent and Dove Housing Association has paid £76,000 for the property out of its own funds. They now rent it out to Arthur, for just £70 a week - a far cry from the £708 per month he had to pay his mortgage lender. David Orr, chief executive of the National Housing Federation, says: 'The mortgage rescue scheme is a charter for saving thousands of households from the nightmare of repossession.'