Government offers help to families threatened by repossession
A £200 million government scheme has been implemented to provide assistance to low-income households at risk of having their home repossessed.
The plan, which was originally announced as part of a package of measures back in September 2008, enables families to sell a share of their home to a housing association in order to cut down on their mortgage payments
Alternatively, households may sell their entire property to the housing association and continue to live in their homes as tenants on subsidised rents.
So far the scheme has been adopted by 80 councils as well as being rolled out across all local authority areas in England.
"This is part of a range of measures the government is putting in place to help households at risk of repossession in the current climate," explained the housing minister, Margaret Beckett.
"As well as expanding free debt and legal advice, we have increased the support available for people who lose their jobs, and are introducing the option for homeowners to defer part of the loan to give them the time they need to get back on their feet."
This scheme is part of a larger strategy to assist property owners who have been hit by the economic downturn and is aimed at those households which have an annual income below £60,000, and who have been entitled to re-housing under homelessness legislation because they are disabled, elderly or have children.
Over the next two years, the scheme is expected to help up to 6,000 households avoid repossession.
The government is also currently working alongside lenders on another scheme which will enable households to defer part if their mortgage payments for up to two years if they experience a sudden fall in their level of income.
In similar news, last week saw the waiting time before property owners who suffer a job loss qualify for state help with mortgage interest payments, reduced by 26 weeks to 13 weeks.
Source: Evening Standard | Last updated: 16th January 2009
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