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Mortgage Rescue Scheme

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.

Who can get help from the Mortgage Rescue Scheme?

To be eligible for the scheme your household must include someone in 'priority need'. This could be:

  • A pregnant woman 
  • Someone with dependent children 
  • Someone who is vulnerable because of old age or a physical or mental impairment 
  • You’ll also need to meet the following criteria:
  • Your household must earn less than £60,000 a year 
  • The value of your home shouldn’t be higher than £155,000 
  • Everyone named on the mortgage must agree to be considered for the Mortgage Rescue scheme – although you don’t have to sign a written agreement 
  • You must have received debt counselling and advice from a free independent debt adviser at an organisation like the Citizens Advice Bureau 
  • You should have made arrangements to repay any debts 
  • You should have discussed all other options to meet your repayments with your bank or mortgage lender 
  • You must have a clear need to stay in your home, which means it’s not practical or reasonable to move somewhere smaller or cheaper 
  • Your home must be suitable for your needs - for example, there’s not too many people sharing the same space making it unsafe and unhealthy 
  • You must not own a second home, including a home abroad 
  • Owners of freehold and leasehold properties who meet these criteria are also eligible for the Mortgage Rescue Scheme

Help for people in negative equity

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

How the Mortgage Rescue Scheme works

You can be referred to the scheme by:

  • Advice agencies, like the Citizens Advice Bureau 
  • Your mortgage lender 
  • The courts 
  • You can also contact Wyre Forest Community Housing directly to get advice about the scheme.

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’

Shared Equity Loan

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.

Government Mortgage to Rent

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.

Further Information

To discuss this scheme further please contact Housing Services on 01562 732563.

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