Government backed housing schemes Morgage rescue scheme -

September 2008 Housing News. Government backed housing schemes.

Hazel Blears, the Communities Secretary, announced a £1 billion housing package, with a mortgage rescue scheme to help families in danger of having their homes repossessed.

Key Fact

Extra funds will be diverted to provide 5,500 more council houses, and a shared equity scheme established to help 10,000 first time buyers get into the housing market. Income Support for mortgage interest is also to be made more widely available from April 2009.

Morgage Rescue Scheme for families facing repossession.

 

Government Backed Mortgage Rescue Scheme

Under the scheme, vulnerable families who are no longer able to keep up with their mortgage repayments will be offered the chance to sell their home and rent it back, or to enter into a shared equity or shared ownership scheme on the property.

 

The move is one of a series of measures being announced to help hard-pressed homeowners and those struggling to get on to the property ladder in the current economic climate.

The Government is also introducing a shared equity scheme for first-time buyers and it is boosting the money available for affordable housing schemes. First-time buyers whose household income is less than £60,000 will be able to buy newly built properties with an equity loan of up to 30% of the property's value.