Rescue Option One - Shared Equity Scheme
The Shared Equity scheme enables the homeowner’s monthly
repayments to be reduced. Under the scheme, a housing association
will provide you with a loan between 25 and 75 percent of your
current mortgage. This will be paid directly to your lender to
reduce the amount that you owe. You will continue to make
repayments on your remaining mortgage and your loan. However, as
you pay a reduced rate of interest on the equity loan, the total of
these should be less than you present monthly mortgage repayment.
The Shared Equity scheme is best suited to you if;
• You have between 25% and 75% equity in your home, and;
• You wish to continue in home ownership
Rescue Option Two - Government Mortgage to Rent
The Government Mortgage to Rent scheme enables the homeowner to
sell their property to a housing association whilst remaining as a
tenant. As a tenant under the scheme you pay a reduced monthly rent
that is roughly equivalent to 80% of what would be charged by a
private landlord. The Government Mortgage to Rent scheme is best
suited to you if;
• You are presently or expecting to become benefit
dependent and therefore you are unable to continue paying your
mortgage
• You have little or no equity in your property
• You owe more money on your property than it is presently
worth (known as being in ‘negative equity’)
What steps should you take first?