A government initiative aimed at helping people avoid repossession has launched across England today (January 16th).
Homeowners struggling with mortgage repayments in England are to be assisted by the state after the government's mortgage rescue plan began in full today (January 16th).
Under the £200 million scheme, not-for-profit housing associations will purchase homes from people at risk of falling into arrears. They will then be able to stay at the property as tenants. The government estimates that 6,000 homes will be helped by the measure.
The government has introduced a raft of measures to help people who have been made redundant in the downturn avoid the double blow of being made homeless as well. The National Housing Federation (NHF), which represents non-profit housing associations in England, and the Council of Mortgage Lenders formulated the rescue scheme last year as the problems in the economy became apparent.
There have been a number of reports of struggling homeowners selling their homes to businesses in desperation, under the assumption they will be able to stay in it. NHF chief executive David Orr said the scheme would "undermine those shadowy companies currently making money out of people's misfortune by buying their properties at substantially less than the going rate - and then only letting them stay on a short-term tenancy basis".
Homeowners wishing to apply for the scheme should speak to their local authority, which will have their finances evaluated to see if they qualify.
