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Mortgage rescue scheme offered to Barnsley households facing repossession
A mortgage rescue scheme was approved by Barnsley Council Cabinet Members this week (19th March 2009), enabling homeowners at risk of losing their properties to remain in their homes.
In a joint report from the Development and Adult Social Services, Members were informed that the council and its partners have already responded to the needs of Barnsley residents feeling the effects of the current economic recession in a number of ways.
These include providing contact details for a number of agencies who can provide support, a guidance leaflet covering benefit and debt advice, and bespoke staff training on debt advice and income maximisation.
However, some people are experiencing severe financial difficulties and some owner –occupier households will quickly encounter difficulties in keeping up to date with mortgage payments.
The Mortgage Rescue Scheme (MRS) is one of a range of initiatives announced by central government to support home owners. Members heard at a local level it is estimated that between 20 to 30 households might be assisted by the scheme, based on the number of vulnerable households with mortgages and recent trends in repossession proceedings.
The MRS is a targeted and specific homelessness prevention tool for vulnerable households and to qualify for assistance, the homeowner must be:
- a person with whom dependant children live with,
- a pregnant woman or a person with whom she lives with,
- a person who is vulnerable as a result of old age, mental illness or physical disability, or with whom such a person lives with.
In addition it will be necessary to establish that the prospect of homelessness has come about through no fault of their own, that the household income is less than £60,000 per year, and that the estimated value of the property is within £130,000 – the regional property cap level for Yorkshire and Humberside.
Depending on their specific circumstances, homeowners eligible for help under the MRS scheme may be offered either a shared equity option or a government mortgage to rent.
Barnsley Council will be responsible for promoting and administering and assessing applicants’ eligibility. These tasks will be carried out by the Housing Options, Advice and Homelessness Team and it is anticipated that the administration can be dealt with by current staff. For further information please contact Tel: 01226 772430.
Download the Mortgage Reference Scheme Advice Guide.
* Barnsley Council has issued wide-ranging advice to people struggling with debt.