Government scheme to rescue homeowners from repossession

Posted under General by Michael

A £200m scheme launched by the government would enable no-for-profit housing associations to purchase all or part of home equity so as to protect homeowners from repossession of property.

It is expected that more than 6,000 households would benefit from scheme, but people will have to submit application to concerned local authorities for help.

Families with dependent children, disabled or elderly members or people vulnerable in other ways will be eligible to apply for the scheme. Local authority will assess applicant’s finances before valuation of property.

After sanction of application the householder would be permitted to remain in property either as owner after receiving loan to help in lowering mortgage costs or as a tenant paying affordable rent. The loan would be repaid in full or part once the borrower finds improvement in financial conditions.

The scheme is brainchild of the National Housing Federation which is representative of England’s Council of Mortgage Lenders and housing associations. 80 councils were initially included in the scheme at launch in December, which is now extended to all local authorities in England.

It is expected that government scheme would check activities of unregistered firms which cheat vulnerable people by buying their properties below the market price and allow them occupy property on a short-term tenancy.

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