Mortgage Rescue Scheme Advice Please

[chilliwitch]

Just really want some advice please.
We currently own our home(mortgage)which is a ex local authority property.My hubby is being made redundant at the end of Sept,basically we know we're not going to be able to afford the mortgage once he loses his job,he's on nearly £12 an hour at the mo but has no skills or qualifications,has been in the same job for 16 years and jobs within his sector only pay on average £6-£6.50 per hour.We(like idiots)took out a £10.000.00 home improvement loan secured on the house 2 years ago and still owe about £9000 on that(Please don't tell me how silly we were!)I can see us going under and losing it all.Does anyone know much about the government Mortgagae rescue scheme,where the local authority will buy your house(For 97% of the market value)then let you stay there as a tenant and pay them rent,I don't want to lose my home and was thinking this may be a option for us.
Any help wld be greatly appreciated.
TIA
Chilliwitch

[buildersmate]

You can download a PDF publication about the scheme from here.
http://www.communitie...g/aboutmortgagerescue
As far as I know, the new Government has indicated that the new scheme will continue (it was only started in March this year).
Shelter also have some info on it here.
http://england.shelte...ortgage_rescue_scheme
Good luck with things

[chilliwitch]

Thanks for that Builder,I had already looked at the government one and think it could help us out of a very sticky situation!I think a visit to CAB would be useful,thanks again
Chilliwitch
x

[Hymie]

Much might depend on the equity you have in the property – but you should definitely get advice from the CAB. You need to advise both your mortgage lender and home loan company of your situation. Those who bury their heads in the sand and hope that the problems will go away, are those who are on fast track to repossession.

Depending on how long you paid council tax at the property, will to some extent determine the purchase discount that would have been offered. Even so, given that a discount is the prime reason for buying council property, you should have some equity in the property.

E.g. let’s assume that the property is worth £150K and you have an outstanding mortgage of £80K – then you have equity of £70K in the property. If you are fortunate to be in such a situation, your mortgage company might be willing to agree to an extended payment holiday. After all, the other option is to force the sale of the property – allowing them getting their money back. Allowing you to have a payment holiday will still allow them to get their money back (should everything workout or not), and then some – since your mortgage will increase by around 5% over the coming year (with no mortgage payments). You must get an agreement from your mortgage lender (not to pay the mortgage), otherwise additional fees will be incurred (a lot like not paying your credit card each month – but worse). The situation with the home improvement loan will have to be negotiated directly with the loan company – again they might be willing to re-schedule the debt with lower monthly payments, which can be managed with a reduced mortgage payment or payment holiday.