Mortgage Rescue Scheme Of UK Government
If you're unable to make your mortgage payments because of unemployment or a cutback in income due to economic downsizing, the mortgage rescue scheme in the UK might help you. Most homeowners in the UK are at a risk of losing their housing property to banks or other financial institutions due to non-payment of monthly mortgage installments. In order to help such homeowners, the UK government sponsors a mortgage rescue program which aims to aid them and their family members in securing their property from being foreclosed.
Mortgage Rescue Scheme provides financial help to those homeowners who are exposed to the risk of losing their home property because of their inability to make their mortgage payments in time. The program focuses on helping common people by providing direct financial help or guiding them on other alternative solutions so that they can stay in their homes without any stress and fear of foreclosure. This scheme has been introduced basically for those who live in England. The UK government also provides you with similar schemes even if you don't live in England.
The main feature of UK mortgage rescue program is that it concentrates on high-priority cases and aids pregnant women, elderly people, sick people, and parents. Immediate help is available to those who fall in this category and qualify for financial aid under this scheme. But, there are several eligible criteria that need to be strictly fulfilled by an individual applying for UK mortgage help.
Eligibility Criteria for UK Mortgage Help
* The individual seeking an aid under mortgage rescue scheme by UK government must not own a second home including holiday homes and investment properties, neither in UK nor in abroad. * The present market value of your home should be below than a pre-set level of property rates in a particular region. * One of the most important conditions to qualify mortgage rescue scheme is that your total annual household income (including the income of all family members) should not exceed 60,000. * Last but not the least; your total mortgage balance should not be more than 120 percent of the market value of your home.
Restructuring Finances
Once you meet all these eligibility criteria, you can fix up an appointment with a financial advisor of your local council. After conducting a thorough inspection and appraisal of your home property, they'll advice you on how to restructure your finances to be able to make monthly mortgage payments.
The next step is to approach a Registered Social Landlord to apply for mortgage help. There are two main avenues that can be used to provide financial help: A Government Mortgage to Rent Program and A Shared Equity Loan. The former is a measure to for those who can't afford to make monthly mortgage payments at all but want to stay in their home. Under this scheme, the Registered Social Landlord buys your property for 97 percent of its current market value and gives it to you on rent at a reduced rate so that you can continue living in the same house.
Under a shared equity loan, your monthly mortgage payments are reduced to a manageable level. In order to qualify for UK mortgage rescue scheme, the present market value of your home should be 25 percent higher than the amount you owe to the bank or financial institution.
This particular mortgage rescue scheme is available only for the people living in England. In order to know about similar schemes in other areas, you may contact your local council.
About the Author
Mortgage Rescue Scheme is a mortgage assistance program introduced by the UK government. This scheme is to help those homeowners who are struggling to pay their monthly installments or are at a risk of losing their house due to their inability to make their mortgage payments. Visit http://www.mortgagerescuescheme.co.uk for more information.
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