Housing association rescue scheme launched

A mortgage rescue scheme involving housing associations has recently been launched in the UK by the government. The scheme is aimed at trying to help homeowners to avoid repossession, and will involve housing associations buying up properties from homeowners that are struggling and then offering a number of options, including allowing the homeowners to stay on in the home on a rented basis.

Margaret Beckett, the Housing Minister, said: “We know that some families are worried about their mortgage payments right now, and we are determined to do everything possible to ensure repossession is always a last resort.” She continued: “Maybe one of them has lost their job, or maybe they’ve lost their overtime and that’s the thing that jeopardises their pay and their mortgage and that’s why we’re working with the lenders on that scheme.”

The National Housing Federation created the scheme last year, and will involve the various non-profit housing associations throughout the country. Up to six thousand households could benefit from the scheme according to recently released forecasts. The cost of the scheme is said to be around £600 million.

The scheme had already been in place with around eighty local authorities throughout the country, but officials have now said that it is to be rolled out across the remainder of the country to try and curb the expected in increase in repossession levels.