Mortgage rescue scheme

Traloumar

Am i eligible? Keep getting conflicting advice. My circs: relationship broken down & i have a 16yr old son in FTE and trying to keep us both in the house with a significantly reduced income. Three yrs ago my ex-partner and i bought a house with the help of an equity loan. I have enquired about the mortgage rescue scheme (buy house & rent back to me) - local council say i don't qualify. Equity loan peeps say i should qualify as i am a 100% freeholder with their loan as a 2nd charge on the property. Can't find anything in writing to confirm these statements. There must be something out there with a bit of definition, but I can't find anything. Would really appreciate if someone is able to firm this up with facts, rather than like the council, just by telling me i don't qualify means i don't qualify!! If any other details are needed to clarify my situation, please ask

IF

Hi Tralour and welcome to the BR ( Bankruptcy) board.

Here's the link to Angie's thread, hope this may help.

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

Best wishes
IF...x

debt_doctor

Hi,
MRS is a scheme that allows (should the criteria be met) you
to remain in your current home and revert from being the home owner to a tenant of a Housing Association (HA). Essentially, the HA buys your current owned home and rents it back to you at an affordable rent, which if your income allows (working or not) may be partially or fully met by Housing Benefit. It allows the possession action to be postponed whilst the lender works with your Local Authority and HA to process the MRS. Any profit from sale will be yours to keep subject to a 10% deduction for the MRS costs. If you have no equity there will be no cost. The main criteria for MRS are;

Property value subject to a regional cap, applicant earnings cap of £60 000 per year.
Maximum 20% positive or negative equity in property.
It must be the home that you normally live in.
All other options must have been explored to avoid possession action, and most LAs insist upon a '15 day letter' from the lender before begining the process.
You, or someone in your immediate family must have 'priority need' as per the Homeless Legislation. This would normally mean you have children under 18, someone is pregnant or someone is 'otherwise vulnerable' due to age, illness or disability.
In some cases local authorities are placing their own additional criteria to the National criteria stated above. This may be things such as 'priority plus' where they may decide to ration MRS if demand is high by extra criteria. The receiving Housing Association may also consider under occupancy of your current property as not meeting their criteria, especially with the 'bedroom tax' as it affects Housing Benefit on the horizon.
In any event any council should be able to give their reason for rejection, so you may wish to start climbing the ladder of authority by asking to speak to the Housing Manager and / or making a formal complaint.
Often a good way in (or at least get a reason why not) is to contact your local councillor and ask them to assist you.

DD

immoral_angeluk

Hi OP, I've moved your thread over to the house buying/renting/selling board where it should get a better response.

Fire_Fox

http://www.moneysavingexpert.com/mortgages/mortgage-arrears-help
https://www.gov.uk/mortgage-rescue-scheme/overview
https://www.gov.uk/support-for-mortgage-interest

Take in a lodger for a tax free income of up to ~£4K year
https://www.gov.uk/rent-room-in-your-home/becoming-a-resident-landlord