The Mortgage Rescue scheme is a government scheme that may help if you are having serious difficulties making your mortgage repayments and are in danger of becoming homeless if repossessed.
If you are eligible, you could get financial help to stay in your home. As a resident of Thurrock, you make your application for help from the scheme to Thurrock Council.
To be eligible for the scheme your household must include someone in 'priority need'. This could be:
You'll also need to meet the following criteria:
Owners of freehold and leasehold properties who meet these criteria are also eligible for the Mortgage Rescue scheme.
You may be eligible for help from the Mortgage Rescue scheme if you are in 'negative equity'. This is when the amount owed on your mortgage is more than the value of your home. If you are in negative equity, you can apply for the scheme if:
You can be referred to the scheme by:
You can also contact your local council directly to get advice about the Mortgage Rescue scheme.
When you apply for help from the scheme:
The council may involve a Registered Social Landlord (RSL) - an independent housing organisation registered with the Tenant Services Authority. The RSL can provide a shared equity loan, which means they will pay off a proportion of your mortgage. In return they receive a share in your property's 'equity' - the market value of your home minus the outstanding mortgage balance. The RSL will agree on the proportion, which will be based on an assessment of your household's finances. This will reduce your mortgage to a more affordable level so you can continue to make repayments.
Alternatively, the RSL may suggest a Government mortgage to rent, which means the RSL will pay off your mortgage completely by buying the property. You'll stay in your home and pay rent to the RSL as their tenant. The rent will be at a level lower than the 'market rate' - this will be cheaper than if you were renting from a private landlord.
You'll continue to receive advice after you have entered the scheme to help you manage your finances.
For further information about the Mortgage Rescue Scheme: