Housing officers at Erewash Borough Council have completed their first case under the national Mortgage Rescue Scheme – and are now working with three more residents that have also been referred for help as part of the scheme.
The successful case involves a local resident who was made redundant early in 2009 and, despite attempts to find work across the Midlands region, was unable to find another job.
The council’s Housing Options team stepped in to help and secured the Mortgage Rescue help just a day before the resident and his family faced losing their home at a repossession hearing.
The resident had desperately tried to keep up with household bills after being made redundant and had talked to lenders and asked for advice. But the bills eventually became unaffordable and a court summons was issued.
The Council team worked with the homeless charity Derbyshire Housing Aid, which has a base in Erewash, to put the case for Mortgage Rescue together and the application was submitted and accepted on the eve of the County Court hearing – which would have left the family homeless.
As part of the national scheme, East Midlands Homes are the local ‘agent’ and, thanks to the strong application put forward, agreed to buy the resident’s property and then rent it back to him.
The Mortgage Rescue Scheme is a new £200m package of measures launched by the Government to prevent some of the most vulnerable families from losing their homes.
The scheme is aimed at those who would be eligible for homelessness assistance and is subject to a range of eligibility criteria. The Government believes the £200m will prevent up to 6,000 repossessions across England.
Councillor Carol Hart, Erewash Borough Council's Deputy Leader and Lead Member for Community Engagement, said:
“We are delighted for our client and their family and very pleased that they can stay in their own home.
“The partnership between Derbyshire Housing Aid and Erewash Borough Council has proved to be very effective and we will continue to work together to help other local residents who find themselves in a similar situation.
“The key message from this first successful Mortgage Rescue case is that the resident asked for advice and sought help immediately they realised they were getting into difficulty. It is vital that people do not bury their heads in the sand – we are here to help.”
NOTES:
The Government’s mortgage rescue package works by bringing together local authorities, Registered Social Landlords (RSL), lenders and debt advice agencies. It offers two options in the scheme:
- Shared equity: This is designed to help householders who have experienced payment shocks and need some help in paying their mortgage. The Registered Social Landlord (RSL) provides an equity loan enabling the householders' mortgage repayments to be reduced.
- Government Mortgage to Rent: This is designed to help the most vulnerable households on low incomes with little chance of sustaining a mortgage. The Registered Social Landlord (RSL) purchases the property and the applicant pays rent to the RSL at a level they can afford after a full assessment of household finances
