An Overview Of The Mortgage Rescue Scheme

The Mortgage Rescue Scheme affords financial help to individuals who are unable to make their monthly mortgage payments and are at risk of losing their homes. A borrower may talk to his lender about this plan, after trying all options available to him for making the repayments easier. The financial situation of the homeowner will decide the type of assistance he can receive. An individual may apply through the council nearest to the immediate area of his residence.

Qualification Criteria for the Plan

A borrower can avail of the Mortgage Rescue Scheme, if a member of his household comes under specific categories. These include: an individual with serious physical or mental disability, dependent children or a pregnant woman. In addition, the individual may not have a second property in the country or abroad, and the members of the household may not earn more than sixty thousand pounds a year. Moreover, the value of the home should not be higher than a specific value set for the neighbourhood, and the mortgage on the home should be more than 75% and less than 120% of the market worth of the property. There may be several other decisive issues, as well. It is prudent to contact the local council for necessary details.

Features and Benefits of the Scheme

The local council offers a selection of services to the borrower when he applies for the Mortgage Rescue Scheme. The council fixes up an assessment of the property to judge its current market worth. The officials of the council coordinate a meeting with a financial adviser, so that the borrower may get advice on debt management. In addition, the borrower may avail of two types of financial help from an autonomous housing organisation called the Registered Social Landlord (RSL).

The first kind of assistance provided by the RSL is an equity loan. This is an interest only loan. The borrower may obtain this loan to pay off a part of his mortgage and make the monthly payments within his means. A homeowner may qualify for this loan if he has 40% equity in his property.

The RSL offers a second kind of help called the government mortgage to rent. In this plan, the borrower pays rent to the RSL. The value of the rent is about 80% of the market rate in the region and the homeowner may stay in his house.

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