The Mortgage Rescue scheme is a government scheme that is run by Wyre Forest Community Housing on behalf of the Council. If you are eligible, it could provide financial help for you to stay in your home.
To be eligible for the scheme your household must include someone in 'priority need'. This could be:
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 meet all the other eligibility criteria
The value of your mortgage (and any loans taken out against your home) is less than 120 per cent of the value of your home
You can be referred to the scheme by:
When you apply for help from the scheme Wyre Forest Community Housing will arrange for you to meet with a Wyre Forest CAB money advice worker. You’ll get advice and a plan to help you manage your debt or some other way that you can meet your housing costs
If you are eligible for the scheme, Wyre Forest Community Housing will refer you to WM Housing Group who will arrange the assessment of your home
Depending upon your circumstances you may get financial help, either with a ‘shared equity loan’ or through a ‘Government mortgage to rent’
WM Housing Group 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. WM 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, WM Housing Group may suggest a Government mortgage to rent, which means they will pay off your mortgage completely by buying the property. You’ll stay in your home and pay rent to WM Housing Group 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.
To discuss this scheme further please contact Housing Services on 01562 732563.