The Council has a number of support packages to help local residents who are struggling with their mortgage payments. The schemes are specifically aimed at homeowners who are at risk of losing their homes through repossession.
Support in three ways is available:
Breathing Space - Mortgage Assistance Loan
This is a stop gap measure to help you following temporary changes in your circumstances such as redundancy or ill health. Help can be provided through an interest free secured loan to pay off mortgage arrears. The loan can also provide ongoing mortgage instalments for up to 12 months, depending on your needs.
Breathing Space can also be used to provide financial help with arrears and ongoing payments for secured loans too. The amount made available is between £2,000 to a maximum of £15,000. Payments are made direct to your lender, and we can work closely with you to help with other debt problems that you might have.
Anyone who takes out a Breathing Space loan does not have to repay any monthly instalments, during the 3 year loan period, although you can do this if you prefer.
- there are no fees
- there are no set up costs
- the loan is interest free
- the loan is fully repaid at the end of the 3 year period so that we can offer help to other households.
As the title suggests, Breathing Space allows you time to consider your longer term options, whether this is to re-finance/re-mortgage your home or sell at a realistic market price.
To qualify for help under the Breathing Space scheme your mortgage and secured debts plus our loan should be below 90% of the value of your home, but anyone can apply as there are no house value restrictions. More information and details of how to apply can be found in the attached leaflet (See 'Downloads')
Mortgage Rescue Scheme
This provides much more detailed support if your circumstances have changed and you are facing longer term difficulties with home ownership.
Under the Mortgage Rescue Scheme, a registered social landlord (RSL) can buy your property and you will remain in your home as a tenant. If you have equity in your home, an equity share option is available, and the RSL will buy a share that will clear your mortgage and debts. If you have very little equity or are in negative equity, the scheme might still be able to help you.
To qualify for the scheme, your property should not be valued at more than £140,000 and you should be in priority need. However, there are some flexibilities, so if you are not sure, we would recommend that you contact us to find out.
Rents under the scheme are set at at least 20% below private rented levels for your area so payments are usually lower than that paid to your mortgage.
You may also be entitled to additional help through Housing and Council Tax benefits.
Preventing Repossession Fund
This scheme offers small scale interest free loans to deal with immediate difficulties that could result in you potentially losing your home.
The maximum amount available is £5,000 and this is repaid on a monthly basis. A £5,000 over the maximum 5 year lending period works out at £83 per month.
The purpose of the loan is to give real stop gap help to get your mortgage or debts under control in a situation where you can normally manage but need some small scale help. The loan might be useful for tenants who could be facing eviction for rent arrears.
These schemes cannot help everyone, especially if you leave it too late. If you have any worries about your mortgage we would encourage you to contact us early to give you the best possible advice and help. However, it is never to late to seek advice.
Further information
There is information on useful contacts for help in the attached leaflet (See 'Downloads') or you can contact us at:
