The UK Government Mortgage Rescue Scheme (MRS) is to help some of the most vulnerable homeowners to avoid repossession. You may be eligible for assistance if you are pregnant, have dependent children, are elderly or have a mental or physical disability.
MRS is designed to help those who are struggling with delays of the mortgage, but the coalition government estimate that more than 2,500 affected families will be assisted up between now and when the plan ends in spring 2013.
Mortgage Assistance Requirements
* Your household income must be below £ 60,000 per year.
* Do not have a second property, including a vacation home.
* Loans secured against your property must be less than 120% of the value of your home. After consultation with a Housing Association, this criterion is not an obstacle to be accepted.
* The value of your property does not exceed the threshold for your area. You should talk to your local council to find the upper limit of your town or city.
Government Mortgage Help
* Shared equity loans – to qualify for the loan, will have at least 25% equity ownership. Then a low monthly payment will on the basis of interest only. The money should be used to reduce your mortgage or secured loan payments to improve accessibility.
* Mortgage Rent – A registered social landlord (RSL) is able to buy a house for 97% of fair market value. Then it will become a tenant of a housing association at a rate that is 20% below average for your local area. You will be a tenant at least 3 years.
Future system of Government Foreclosure Rescue
The government has pledged £ 200 million to MRS in the next two years, but there have been dramatic changes. The redemption price will decrease from 97% to 90%. This means that a property worth £ 120,000 can now be purchased for Real Salt Lake instead of £ 108.000 £ 116.400.