Govt Mortgage to Rent Scheme/Will it save my house?

NellieNewbie

Thanks Angie and I couldn't agree more about the enormous sense of relief that we can stay in our own home. It doesn't solve our financial problems, but at least we know we have a secure roof over our heads.

Fingers crossed for others in the process.

Angiepange

NellieNewbie wrote: »

Thanks Angie and I couldn't agree more about the enormous sense of relief that we can stay in our own home. It doesn't solve our financial problems, but at least we know we have a secure roof over our heads.

Fingers crossed for others in the process.

Thinking of you NN.

You've done so well to get this far :T

I have kindly been sent some new information. Apparently as from March 1st, whereas previously successful applicants to Mortgage rescue would be offered 97% of their properties value, this is being cut to 90% market value for new applicants . Reason being, to make the overall finance for the MRS stretch further and help more families.

People with equity in their properties will have to think hard about the potential loss to themselves, and another consideration is if banks will become more reluctant to write off larger shortfalls. :cool:

notfunnymoney

NN - really glad that everything is ticking over nicely for you!! You're at the same stage as us with Solicitors and everything - we've signed our bit of the contract and sent it back so I guess now they have to send that to our RSL Sol. who then do all their bit - but like you said, think they've all been told it's gotta be done by 31 March so fingers x - that's only 5wks tomorrow (thurs 24/02)!!! I'm still really nervous something could go wrong tho and can't fully accept anything in my head yet.... our property is a Leasehold property (landlord is actually another HA!) so there could potentially be issues surrounding the future costs (to RSL) of that but at the same time I know of another LH property to have gone thru and was also told my the guy at my RSL "it will probably be fine but it's just something we have to consider" - but I just still cannot breathe out until everything is signed, sealed and delivered.... hopefully!!!

Angie - I'm stunned that the RSL fee is going upto 10%!! That is a massive leap from 3% when you're talking thousands of pounds isn't it?! I can kinda see why they've got to increase it, to spread funds more but at the same time, as you said, those with Eq have much more to lose and those in neg eq could really struggle to have it written off?!

I was really scared when I realised that we were almost the guinea pigs for this scheme cos thought to myself "great, we're gonna be the victims of all their teething problems!!" but as much as being one of the first might have meant longer waits while the CAB/LA etc had to learn about the scheme etc - I think it's the next lot of poor souls that are gonna be the victims of things they've now learnt from our cases going thru - ie that they need to charge more than 3% for one!!

Also, we were told by our RSL (the Manager who came out to see us for home visit) that she had gone to 'the board' and suggested that MRS tenants get the same rights as other tenants and that the 3yr !!! Ten was discriminating against MRS tenants!! So we only have to complete one yr and then after that we have the same rights as other HA tenants!! She was even encouraging us to apply to homeswapper after the one year so we could "have a house for the kids"!!! I was thinking - can we just get this one sorted first, lol!!! But it is nice to know that, having a boy and girl sharing a room (we live in a 2bed maisonette) there could be a chance of moving into a 3bed house one day - but that's WAAAAAYYYY down the line!!!

Anyway, waffling now and could do with getting to bed - shattered!! Story of my life, I don't think I'll feel fully 'alive' again until all this is over.... night night!!

H x

sillygirl73

After finally getting our lender to send out the 15 day trigger letter early (on the advice of MR advisor) and handing it to him personally last week, I have just had a phone call from my CAB advisor who wanted to pass on a message from the MR advisor that we are not eligable any more:sad::sad:...........on asking her why, she said that he had not given her a reason, had just mentioned it to her in passing!!
I am so upset and so angry that after all this time (was initially advised that MR would be the answer back in June last year) that he has not even had the courtesy to tell me in person. I have e-mailed him a couple of times since giving him the letter on Tues last week, but have had no response.
My CAB advisor had no answers to my tearful questions, as she does not know anything about MR.
I don't understand what has changed.........our circumstances are exactly the same, we can only afford 50% of our mortgage payments, and have the same incomings and outgoings. The only thing I can think of is that with the new rules about the HA taking 10% as a fee, we will have too great a shortfall.......but surely that could be dealt with as and when that came up?

I have wanted to stop paying mortgage since last year and find our own rental property and just get repossessed, but have been advised all the way along that MR would work for us:mad:. So don't have much saved for a deposit and am now facing legal proceedings imminently.
Our MR advisor advised me 3 weeks ago that if we could speed up the process with lender in order to get the 15 day letter then that would be great! I have done absolutely everything he has asked and played it all by the book.

He is now not around until tuesday next week, and so I will be contacting him then to ask why we are suddenly not eligable. Think he's just been plain rude:mad: to not even bother to respond personally to me.

Anyway, I needed to have a rant.....apologies!!

Angiepange

sillygirl73 wrote: »

I have done absolutely everything he has asked and played it all by the book.

He is now not around until tuesday next week, and so I will be contacting him then to ask why we are suddenly not eligable. Think he's just been plain rude:mad: to not even bother to respond personally to me.

Anyway, I needed to have a rant.....apologies!!

:( I am so shocked by your latest news Sillygirl.

As for the MR advisor :mad::mad: you don't deserve to be told news like that without an explaination thats for sure.

I can't understand how it could be a shortfall issue? I mean at the end of the day, it is up to the lender to allow the property to sell, and either write off the shortfall or negotiate a repayment plan.

Its not worth trying to second guess the reasons, I just feel for you, especially now you have to wait until next week to speak this advisor in person . All I can say is don't give up yet, try and stay calm fi you can and hopefully next week you can find out what on earth is going on with your case.

Thinking of you x

notfunnymoney

Oh Sillygirl, that is an awful way to be treated! I have to say that our CAB Advisor was fantastic and was very much our advocate doing a lot of things on our behalf so think it wud b nice if u had a bit more support there too.... try not to panic just yet hun cos nothing been set in stone yet....in the mean time maybe u cud contact ur lenders and ask them more about their side of the MRS, ie wot their criteria is and what shortfall they might allow or repayment plan they might agree to etc....sometimes best to cut out the (!!!!) middle man and go direct! I found the Mrs advisor at our lender (nationwide) fairly ok to chat with.

Hope there is still some hope for u, let us know wot happens, good luck.

H x

sillygirl73

Well, have just come off phone with MR advisor, and its all ok! He misread our financial statement, and thought that the £400 we were paying towards the mortgage (actual £830) was the full amount and that we were actually paying £200 pm..........I wish!! So its all systems go, and he is organising someone from HA to come and look at our house next week! Its still a long shot as he said that MR applications have been frozen till April, and then the quantity have been capped, so council have to decide who has the greater need.........at least the ML should hold off on anything for a while.
So a big sigh of relief.........have had a very stressful weekend.
On another positive note, have managed to save £800 towards our contigency rental deposit etc so feeling good about that. I made about £400 on Ebay selling loads of baby stuff last month, as my little boy was conceived after 6 years and numerous IVF attempts and we had been told that it won't happen naturally. However......little did I know that as those items were selling on Ebay, I was actually pregnant!!!! In complete shock! A complete miracle, and still early days, but I guess it makes it even more important that our housing situation needs to be sorted out sooner rather than later!

NellieNewbie

Glad to hear you are back on track sillygirl. :T

It is amazing and appalling how laid back some RSL and HAs can be about MRS decisions. After all the home visits were completed, we had a phone call from the HA saying the RSL had phoned them to say we were not eligible after all. Picking myself off the floor, I asked if we would get this in writing (thinking about some right of appeal), only to be met by silence - then the HA said she would send me a letter.

Is it any wonder that we don't dare breathe until it is over?

notfunnymoney

Omg congratulations on ur miracle pregnancy! That wonderful news and worth more than anything stupid money can buy, eh?! I can't believe that some idiot "misreading" ur files and making a comment about it to CAB can result in such turmoil for u and all for it to be WRONG?! Disgusting! Well let's just hope u can get on with this eventually, even if u hav got to wait a bit.... U need to stay as stress-free as poss at the mo anyway! Keeping everything crossed for u!
H x

Angiepange

sillygirl73 wrote: »

Well, have just come off phone with MR advisor, and its all ok! He misread our financial statement, and thought that the £400 we were paying towards the mortgage (actual £830) was the full amount and that we were actually paying £200 pm..........I wish!! So its all systems go, and he is organising someone from HA to come and look at our house next week! Its still a long shot as he said that MR applications have been frozen till April, and then the quantity have been capped, so council have to decide who has the greater need.........at least the ML should hold off on anything for a while.
So a big sigh of relief.........have had a very stressful weekend.
On another positive note, have managed to save £800 towards our contigency rental deposit etc so feeling good about that. I made about £400 on Ebay selling loads of baby stuff last month, as my little boy was conceived after 6 years and numerous IVF attempts and we had been told that it won't happen naturally. However......little did I know that as those items were selling on Ebay, I was actually pregnant!!!! In complete shock! A complete miracle, and still early days, but I guess it makes it even more important that our housing situation needs to be sorted out sooner rather than later!

First off a huge on the baby news Sillygirl :T:beer::j Im so happy for you

And secondly what a relief about the Mortgage Rescue (sadly Im not suprised at the c**k up!!) but at least they are continuing with your application.

Have you had anyone out to look at your house yet? Keep us posted how you are getting on.

Really good to hear notfunnymoney and NellieNewbie are on the final stretch now with everything in the hands of solicitors at last. Fingers crossed for you both and please update when you get chance :A

Angie x