Evade Losing Your Home – Take UK Mortgage Help

Evade Losing Your Home – Take UK Mortgage Help

The severe downturn in the international market in the recent past has created a difficult environment in the housing market, especially for the most vulnerable members of the society. With a view to help families at risk of losing their homes, the government has introduced Mortgage Rescue Scheme as a measure that provides the families with an option to stay in their home, with repossession as the last resort.

What Is The Mortgage Rescue Scheme?

Basically, the scheme is a UK mortgage help program that allows lenders to reduce a borrower’s current monthly payments, with the deferred payment rolled up and added to the principle amount and paid at a later date when the borrower’s financial situation improves. The Government guarantees the lender against a proportion of any financial loss incurred by deferred interest payment if the borrower defaults.

The scheme is voluntary, subject to eligibility in order to ensure there is risk sharing between the government, the borrower, and the lender.

Who Is Eligible For UK Mortgage Rescue?

To Qualify, The Borrower:

* Must have suffered a loss of income on account of job loss or suffered loss of income from self-employment of a magnitude that makes full repayment of mortgage difficult. 

* Must have been in dialogue with the lender to negotiate the terms of the existing policies and have been continuing to make some payment.

* Must have received financial counsel, other than the lender’s, to assess their eligibility to the scheme, including their long term ability to sustain partial payments, and resume full payments once their financial circumstances improve.

* Must be earning less than £ 60, 000 per year.

* Must prove that the value of part of the home they own must be able to pay off the debts.

* Must not own a second home.

The above constitute only some of the conditions. For a full list, one may refer to the official website of Mortgage Rescue Scheme. The scheme is open for tenure of two years and thereafter will be open for review. The mortgage rescue is guaranteed for a maximum period and becomes defunct when the customer becomes capable of making normal payments.

The Mortgage Rescue Process

Once the process is admitted to the mortgage rescue team, the local authority assesses the household’s homelessness eligibility. If the candidate is eligible, the lender is alerted. Money advisors are then engaged to draw up a debt management plan or any other financial solution. The housing society or HomeBuy agency visits the property to assess whether the house is structurally sound. Thereafter, a decision is taken on the suitability of a shared option or mortgage to rent. Finally, the local authorities come to an agreement with the lender to freeze all issues so that the mortgage rescue scheme can be put into effect.

If for any reason, the housing benefit (HB) is refused, the claimant can appeal against the decision to a tribunal. The tribunal can have a different view than the local authority. However, before doing so, the claimant must thoroughly review all aspects of the refusal, if need be, by seeking help.

Largely, mortgage rescue scheme has been a success to many who have been on the verge of losing their homes.