Borough Council of Wellingborough

Assistance For Homeowners

Mortgage Rescue Scheme

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Image of Harold Rd - Bozeat

The Mortgage Rescue Scheme went "live" on 1st January 2009. £285 million was set aside with a view to assisting 6000 vulnerable households within a period of 2 years. In 2008, there were 45,000 repossessions in England, and at the beginning of 2009 it was predicted that there would be 75,000 repossessions by the end of the year. This has now been revised to 65,000. The scheme is only available in England, with similar schemes in operation or being developed in Wales, Scotland and Northern Ireland. There are 2 options available under the Mortgage Rescue Scheme. The first is a Government Mortgage to Rent, where the Registered Social Landlord (RSL) purchases the property for 97% of the market value and rents it back to the owner at a below market rent. Ie, it is cheaper than renting privately. The second option is a Shared Equity Loan, where the RSL (BPHA in our region) provides a loan in return for a share of the equity in the property. Therefore, they are reducing the loan amount. The proportion of the equity share is agreed based on an assessment of the homeowners' finances. This reduces the mortgage to a more affordable amount, meaning you can continue making repayments.

For further information please contact our Housing Options Team.

  1. You are here: Mortgage Rescue Scheme
  2. Eligibility & Criteria
  3. Other Options For Homeowners