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Mortgage Rescue Scheme Launched

The Mortgage Rescue Scheme was launched by the Government in January 2009 and aims to help people at risk of being made homeless because they are having difficulty paying their mortgage.

You need to apply to your local council for help. In this area this is Stafford Borough Council. The Council works with its partners, including the Citizens Advice Bureau, Mercian Housing Association and your mortgage lender to try to find the best solution for you.

There are 2 options available

● You can sell a share in your home to the Housing Association. This means that they receive a share in your property’s equity. Your mortgage will reduce to a more affordable level so you can continue to make repayments.
● You can sell your entire home to the Housing Association and remain in the property as a tenant paying an affordable rent

To qualify for mortgage rescue your household must include someone in priority need. This could be a pregnant woman, someone with dependant children, or someone who is vulnerable because of old age or a mental or physical disability.

The following rules also apply

All owners of the property must agree to being considered for the scheme

  • You must have enough equity in your property to pay off any outstanding debts
  • The property must be suitable for your household’s needs, for example, it is not overcrowded
  • You must have sought debt counselling and advice and agreed to arrangements to repay your debts
  • You should have discussed all other options with your mortgage lender
  • You should not own a second home – this includes properties abroad
  • The value of your home should not be higher than £130,000
  • Your household must earn less than £60,000 a year

If you would like more information on the Mortgage Rescue Scheme then you can contact our Benefit Liaison Officer Annette Hopkins on 0800 1114554 who will pass your details on to Stafford Borough Council.

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