Mortgage Rescue Scheme: helping households in trouble

We were really pleased to recently help a family through the Mortgage Rescue Scheme. This means that we purchased their property from them (at 90% of the market value) as they were in dire financial need. They are able to remain in their home, but pay rent to us with a 20% discount on the market level for their property.

Mrs Beasley lives with her husband and two children, but recently her 11 year old nephew had moved in with the family, as his mother had been diagnosed with early on-set Alzheimer’s disease. The financial pressure on the family was significant and they found themselves unable to meet their mortgage payments. Mrs Beasley applied to her Local Authority to be referred for the Mortgage Rescue Scheme, who then contacted us.

To be eligible, someone in the family needed to be considered vulnerable. They qualified. There’s more detail here on the criteria: https://www.gov.uk/mortgage-rescue-scheme/eligibility

The Homes and Communities Agency (HCA) needs to approve any applications for Mortgage Rescue. There’s a cap on the value of the property that can be purchased, which is £235,000 to £258,000. In Mrs Beasley’s case, the property was of a higher value than that. The HCA agreed to waive the cap and help her anyway due to the circumstances of the family, particularly her nephew. Her monthly payments reduced from £1759 per month, to £1160. The whole process took 6 months from start to completion, which is fairly typical.

If you think you may be eligible for the Mortgage Rescue Scheme, please first look for information here https://www.gov.uk/mortgage-rescue-scheme/overview and then contact your Local Authority or the Citizen’s Advice Bureau for a referral to us (if you live in Surrey) or another Registered Social Landlord participating in the scheme.

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