Government Mortgage Rescue Scheme/ Unsuccessful Experience

AMC56

I'm new to posting here - so hope I've posted in the correct section.

This is quite a long saga – so my apologies in advance – but I thought others may find our experience useful to be aware of. :sad:

Thanks to redundancy, lack of employment opportunities in our area and some self-employment attempts which failed – all mainly due to the recession over the past couple of years – we fell into debt and mortgage arrears, and faced repossession at the end of last year. We’d asked both our lender and council for some help – including information about a new government scheme we’d heard about to help people in our situation – but both denied knowing anything about it, so we went to court to ask for time to find alternative accommodation.

Which is when our solicitor mentioned the Fast Track Mortgage Rescue Scheme [FTMRS].

To cut a long story short, we were allowed time to make the application – which had to be made through our lender [which has a story of its own!] – and we received an introduction letter from the FTMRS dated 1st March 2010 confirming our eligibility, etc. They sent a Valuer in April, made an offer to the lender [obviously below current market valuation] – and advised us of their offer. That was the last contact we had from the FTMRS.

In May, our lender stated they wanted another valuation done as they’d received a Drive By Valuation for a much higher amount. The Valuer returned – and gave the same valuation! The only confirmation that the FTMRS were still involved came from our Lender – who phoned us regularly to ask if we had any news!

From June to the end of August we tried every way we could think of to contact the FTMRS – but there was absolutely no response. Then, at the beginning of September we suddenly received a phone call from a local Housing Association to say they’d received our file from the FTMRS, and would now be handling our application. And we needed to complete new application forms – which we did with some concern. Then we were advised a Structural Survey needed to be done – which we had never been told about previously.

We were concerned because although we had done a considerable amount of structural repairs and refurbishment previously, the house badly needs a few additional tweaks and a complete redecoration – but were reassured that cosmetic stuff was not important, so thought everything would be OK.

However, we’ve just been informed – 8 months after our initial application - that we’ve been turned down because the amount of work they would have to do to bring it up to Social Housing Conditions is too expensive. Such as rewiring the whole house as the electrics are more than 2 years old - and overhauling the central heating system because 2 bedrooms don't have radiators, even though the system was installed last winter through a government scheme!

Everyone has known for months there would be a shortfall in the amount we owe, but we've now been told that if there’d been enough equity left over in the property, it could have been enough to cover the refurbishment – which means that not only are Housing Associations able to buy properties below the market value, but they are then able to use up some of their new tenant’s left over monies to refurbish the property with, quite frankly, unnecessary alterations! And there was us thinking this scheme was about rescuing people from mortgage debt – and not about property acquisition and development!

The Mortgage Rescue Officer at the Housing Association told me they have to be sure a property is habitable. I pointed out that we've lived here for 14 years, brought up our children here, and installed a new kitchen and bathroom suite just over 4 years ago – which apparently they need to rip out as well – and yet we have survived so far!


I’m not sure what will happen now – probably why I’m posting this at silly o’clock in the morning as I can’t sleep – but it looks like we’re back at square one again and facing repossession.

As for Fast Track . . . . !

I appreciate there have to be rules and regulations – and know there are some successful applications – but I am beginning to wonder what this scheme is really all about.

Sunnylooloo

AMC - so sorry to read this - not sure if you have read Angie Pange's thread - she has been having terrible problems trying to get her Rescue scheme through...........

not much I can say but it really grates me that they offer these schemes then make it so hard for people to acutally get the help they need.......

LL

Sunnylooloo

this is Angie's thread

https://forums.moneysavingexpert.com/discussion/1930931=

alexandra_cmpbll

This sounds like another useless government scheme, to make it sound like they care and are trying to do something to help people. Its like the new government scheme to help low earners buy a house. Apparently if you earn less than 60000 a year you can apply for a subsidised mortgage. I dont earn anything near the region of 60 000 but was told by mortgage advisor on new build site , I would need to earn 27000 or have a 22000 pound deposit! What a joke.

immoral_angeluk

Sorry to hear it's fallen through, but unfortunately the HA are right, they do have strict property guidelines to adhere to and they do usually have to make repairs etc so the purchase is at their discretion. It's always horrible when someone has been dragged along only to find out right at the end that it's fallen through though
Are your lender now going to start repo proceedings?

immoral_angeluk

alexandra_cmpbll wrote: »

This sounds like another useless government scheme, to make it sound like they care and are trying to do something to help people. Its like the new government scheme to help low earners buy a house. Apparently if you earn less than 60000 a year you can apply for a subsidised mortgage. I dont earn anything near the region of 60 000 but was told by mortgage advisor on new build site , I would need to earn 27000 or have a 22000 pound deposit! What a joke.

Are you talking about the Home buy scheme where you buy a percentage then rent the rest back?

alexandra_cmpbll

yes, the homebuy scheme, open market shared equity scheme ,new supply shared equity scheme. In fact any government scheme, theyre all the same, a good gimmick, very few people benefit from them in my experience. have you had a different experience?

immoral_angeluk

alexandra_cmpbll wrote: »

yes, the homebuy scheme, open market shared equity scheme ,new supply shared equity scheme. In fact any government scheme, theyre all the same, a good gimmick, very few people benefit from them in my experience. have you had a different experience?

My boyfriend's recently bought a homebuy property. His combined mortgage and rent on a 80-90k value brand new 2 bed flat is not far off how much I pay full rent for a housing association place! It was a pain in the bum and really dragged out, but it was worth it in the end. The only problem was he had to have a 20% deposit.

alexandra_cmpbll

well, where are they expecting a part time worker with two children to support, already paying 550 a month rent for a two bedroom private rent to get a 20 per cent deposit. The government couldnt care less about the working people in this country. There rescue schemes and help to buy property for low earners might look good in theory, but im afraid for the biggest majority of people who really need help from these schemes, in practice they dont work. Its time someone stood up for the low earners here and did something that is not just a good looking gimmick but somthing that really works for a change.

immoral_angeluk

alexandra_cmpbll wrote: »

well, where are they expecting a part time worker with two children to support, already paying 550 a month rent for a two bedroom private rent to get a 20 per cent deposit. The government couldnt care less about the working people in this country. There rescue schemes and help to buy property for low earners might look good in theory, but im afraid for the biggest majority of people who really need help from these schemes, in practice they dont work. Its time someone stood up for the low earners here and did something that is not just a good looking gimmick but somthing that really works for a change.

It's all personal circumstances. Fact is renters get a lot of help through housing benefit/local housing allowance. Previously owners got little to no help.
If you can afford to save up a 20% deposit, but would still be unable to get a normal mortgage, then why shouldn't the government help first time buyers? It's all an interrelated effect on the economy anyway, whether you rent or buy, you're still putting into the system, which obviously has to put then back in to society to ensure that the cycle continues and there's still people able to put back into the economy etc...
I agree, the criteria are slim, and only a small number in the grand scheme of things will benefit, but if they helped everyone then there'd be no money left for anything else...

alexandra_cmpbll

I think the government should help first time buyers. They should also widen the criteria for these schemes to help people like myself.