The £285 million Government Mortgage Rescue Scheme has been operational across the country since January 2009. The scheme aims to support “vulnerable” households (families with dependent children, or those containing elderly, ill or disabled people, who can no longer afford their repayments and who would be legally entitled to homelessness assistance if repossessed) in England at risk of repossession over the next two years. The scheme is one part of a comprehensive package of measures to help households at risk of repossession.
The scheme aims to offer help at different stages to vulnerable households facing repossession. Based on figures reported to CLG by local authorities participating in the scheme, 290 households in mortgage difficulties within the Greater Manchester region have so far received free advice and support from their local authority since the launch of the scheme.
Based on the latest published statistics, 45 households in the Greater Manchester area were being assessed for the Government Mortgage to Rent and Shared Equity options of the scheme as at the end of April. A further 10 households in the following local authorities had benefited from action through the scheme in which the lender agreed to halt repossession action and freeze charges.
Additionally, two households in Oldham had received a formal offer of assistance to remain in their home from their housing association provider.
Only one household in the Greater Manchester area has so far been ineligible for the Government Mortgage to Rent and Shared Equity options of the Scheme due to the property price cap. From 1 May, we raised the regional property caps for all regions to allow more households to apply for help.
The scheme opened with the first group of lenders on 21 April. Borrowers apply to the Homeowners Mortgage Support scheme through their lender. Before being admitted to the scheme, they need to take money advice. We have worked with the participating lenders to produce a proportionate reporting system. Official figures on the number of households entering the scheme will be published later this year.