More Information
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- Mortgage Rescue Scheme
The Mortgage Rescue scheme is for people who are at risk of becoming homeless because they’re having difficulty meeting their mortgage repayments. It aims to help the most vulnerable households at risk of loosing their home through repossession. The council will work with our partners, including the Citizens Advice Bureau, your mortgage lender and Yorkshire Housing (Registered Social Landlord) to find a solution that helps you.
The scheme is subject to a range of eligibility criteria. If your household fits the criteria, you would then have two options:
Shared Equity Loan – provided by Yorkshire Housing. This means they pay off a proportion of your mortgage. In return they receive a share in your property’s ‘equity’. This will reduce your mortgage to a more affordable level so you can continue to make repayments.
Mortgage to Rent – which means Yorkshire Housing will pay off your mortgage completely by buying your property. You’ll be able to stay in your home as a tenant, paying rent at a level you can afford.
To take part in the scheme your household must include someone in ‘priority need’. This is someone whose need for accommodation is a particular priority because of their circumstances. This could be:
Priority Need Criteria:
A pregnant woman
Someone with dependant children
Someone who is vulnerable because of old age or a physical or mental impairment.
The following Mortgage Rescue criteria will also apply:
All owners of the property must agree to being considered for the mortgage rescue scheme
The value of the part of your home that you own must be enough to pay off any outstanding debts
You must have a clear need to stay in your home, which means it’s not practical or reasonable to move somewhere smaller or cheaper.
Your home must be suitable for your needs, for example it’s not overcrowded
You must have sought debt counselling and advice and agreed to arrangements to repay your debts.
You should have discussed all other options to meet your repayments with your bank or mortgage lender.
You shouldn’t own a second home (including abroad)
The value of your home must not be higher than £140,000 (set by Government Office)
Your household must earn less than £60,000 a year
There are a number of steps you can take if you are unable to meet the criteria. These include:
Speaking to your mortgage lender or bank:
It’s very important if you are in financial difficulty and at risk of repossession that you get advice from your bank or mortgage lender as soon as possible. You may be able to make arrangements to renegotiate the terms of your repayments. Your lender should treat you fairly and think about what they can do to help you keep your home.
Seek debt advice:
If you are struggling, the first thing to do is, take a look at all your debts together and try to manage and prioritise them. By receiving debt advice you may be able to solve your money worries. Debt advice agencies offer free independent and confidential advice with their trained advisors; who will discuss your circumstances and outline the options available to you.
