Mortgage Rescue Scheme For The People

By Author: Woolley Thomas
Total Articles: 61
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We live in a world of financial problems and economy slumps. People are finding it very difficult to keep up with the increased prices of everything. They are finding it impossible to meet their mortgage payments and many are at the risk of losing their homes. This is where the Mortgage Rescue Scheme comes in. This is a scheme devised by the Government of England to help those who are struggling to pay off their mortgages.

To qualify for the UK Mortgage Rescue, the homeowner should not be in possession of a second home, the market value of the current home should be lower than the level in that area, the income of the household should be lesser than 60,000 pounds in a year, and finally, the mortgage balance should be less that 120 percent of the market value of the house. If all these criteria are satisfied, a person can seek the Mortgage

Rescue Scheme. The next step to do is to meet the local council who will give you sound advice about how the finances can be restructured and how the loan can be repaid without hassle.

Details can also be obtained from the local council website. They will also help in ...
... approaching the Registered Social Landlord to avail the loan. The Citizen's Advice Bureau or the mortgage lender can also refer the homeowner to the scheme. The Registered Social Landlord gives two kinds of loans - a Shared Equity Loan and Government Mortgage to Rent Loan.

The council also undertakes the inspection and appraisal of the home under question. This is useful because if the value of the home is negative, there is a better chance of convincing the creditor to reduce the loan amount. The UK mortgage help gives priority to the low and moderate income groups and those households who have amongst them pregnant women, people of old age and/or one or more dependent children. There is also the Repossession Prevention Fund which forms a part of mortgage rescue which aims at extending small loans to those who are in danger of being evicted from their homes.

The Shared Equity Loan helps the landowner by reducing the monthly loan amount so that these become affordable. The Government Mortgage to Rent Loan is a little more drastic and is meant for those who are in deep financial crisis. What the Government does here is purchase the home from the landowner and rent it back to them for an affordable amount. The house is purchased at 97 percent of the market value. The sad part about this scheme is that the person does not own the home anymore. It belongs entirely to the government. However, on the brighter side, he gets to continue to live in it, and if the person in unemployed, he can even claim housing benefits to pay the rent. To avail the Shared Equity Loan, it is essential for the market value of the home to be 25 percent greater than the mortgage amount.

With the Mortgage Rescue Scheme, there is more hope for homeowners. They have someone to turn to when they are in a crisis and are in danger of losing the roof over their head.

Mortgage Rescue Scheme offered by UK government. Home owners having difficulty making mortgage payments can benefit from this UK mortgage rescue scheme. For more details you can visit www.mortgagerescuescheme.co.uk.