The Mortgage Rescue Scheme is designed to support vulnerable owner-occupiers facing repossession to remain in their home. The Homes and Communities Agency have over 150 partner providers working with the 22 lead providers to provide mortgage rescue across England.
The Mortgage Rescue Scheme comprises of two distinct options, shared equity, where the household remains as a homeowner and mortgage to rent, where the household becomes a tenant of the registered provider.
The household's existing secured debt is reduced to an affordable level by an equity loan provided by the registered provider. The equity loan is secured as a second charge with an interest charge of 1.75% per annum. This fee will rise by RPI + 0.5% per annum.
The property is purchased by the registered provider and let to the household on an Assured Short hold Tenancy with rent charged at 80% of market rent.
More detailed information about the Mortgage Rescue scheme can be found on the Home and Communities Agency website.
All documents open in a new window. Need more help with documents? View the Document Help page.
- Email: email@example.com
- Tel: 01803 208723
- Fax: 01803 208282