The Mortgage Rescue Scheme may be able to help you if you are an owner occupier in mortgage difficulties and you are in danger of having your home repossessed. How does it work ?

If you are eligible for assistance, a housing association will help you in one of two ways, depending on the circumstances:

• The housing association can provide you with an equity loan so that your mortgage outgoings will be reduced, or

• The housing association can buy your home from you and you can continue to live there as a tenant.

The housing association will be registered with the Welsh Assembly Government. The housing association will apply to the Welsh Assembly Government for a grant towards the cost of buying your home.

Funding for the scheme is limited and so it will not be possible to assist everyone. Help will be given to those in greatest need.

Is it for you ?

The Mortgage Rescue Scheme will not be the best option for everyone. It may be possible for you to get back on track with your mortgage payments without having to sell your home. If you are having difficulty paying your mortgage you must talk to your lender and take independent advice to find out what options are available to you as soon as you think there may a problem. Organisations such as Shelter or Citizens Advice can help you.   

Who can apply  ?

To apply for the Mortgage Rescue scheme you must answer yes to all of the following:

• Your home is in danger of being repossessed. That is, your lender has started legal action to repossess your home;

• You will be homeless if the property is repossessed;

• The property is your only or main residence;

• The property is clear of any legal reasons that would prevent it being sold; and

• You are unable to sell and buy a cheaper home locally.

Priority will be given to families and people who live in specially adapted housing.

If you are eligible, the housing association will look at the level of your debts, the cost of buying your home and any repairs or other works that are necessary.  In some cases, it will not be possible to go ahead with your application if the costs are too high to make it practical.

You have no right to assistance under the Mortgage Rescue scheme but if your application is refused, you will be given a reason why your application cannot go ahead.

What should you do next ?

If you think that the Mortgage Rescue Scheme could help you, you should contact:

• your local authority (local council). Their homelessness team or housing strategy officers will be able to help you to get in touch with a housing association; or

• the Housing Directorate at the Welsh Assembly Government at:

Merthyr Tydfil Office

Rhyd Y Car

Merthyr Tydfil

CF48 1UZ

Telephone: 01685 729156 or 01685 729157

E-mail: shg@wales.gsi.gov.uk

For independent advice:

Contact Shelter Cymru on 0845 075 5005

You can find the telephone number of your local Citizens Advice office in the phone book, or click here for website.

This topic is adapted from text on the Welsh Assembly Government's website.