Avail Mortgage Rescue Scheme
If your home is at stake due to financial crunches
, there is hope in the form of mortgage rescue scheme. It can help you save the home and avoid foreclosure. Your struggle to save the home ends here as this scheme offers help with the mortgage payments. This is a government-sponsored program and is aimed at helping people in the UK. It protects the vulnerable members of society by providing direct financial help. UK mortgage help is for your welfare; with this plan, you do not risk losing the home.Before you think of approaching the government for UK mortgage rescue, it is essential to approach your lender. Typically, you can explain the situation to your lender and seek help. This help could be in the form of loan modification where the interest rates are reduced so that the monthly payment is also reduced. Another option would be to extend the term of your loan. You could also seek for an extension period, known as forbearance period, where you do not have to pay the monthly installments for a specific period. This allows you to organize your finances. These are some options that you must consider before seeking a mortgage rescue scheme from the government.
If your lender is not willing to look into the matter, you can approach UK mortgage rescue. But, there are some qualifying factors which you must clear to avail this plan. Here are the qualifying factors.
Check if You Qualify
No other home: When you apply for mortgage rescue, you will qualify for it only if you have one home. If you own a second home or a holiday home in the UK or abroad, you will not be eligible for this benefit.
Market value: The market value of your home should be lower than the level set by the region. Check with your council for the level set in your area. Moreover, the outstanding balance on your mortgage loan should not be more than 120 percent of your home's market value.
Income: In order to qualify for mortgage rescue scheme, your total family income should be less than 60,000 Euros per annum.
If you qualify these factors, you can approach the financial advisors of your local council. They will inspect your home and conduct an appraisal. They will in turn approach a Registered Social Landlord to provide specific and practical help. The mortgage rescue scheme has two programs - Government mortgage to rent program and shared equity program. Both these programs are explained herewith in detail.
Government Mortgage to Rent Program
Under this program, the government assigns Registered Social Landlord to buy the property from the homeowner and rents it back to them for an amount they can afford. The homeowner no longer owns the property, but can continue to live in it.
Shared Equity Program
This program is not so drastic. It lowers the mortgage amount to match the income of homeowner. The government assigns a Registered Social Landlord to grant the homeowners a loan that is used to reduce mortgage payments.
This mortgage rescue scheme in the UK can help you in difficult times. It can save your home from going into foreclosure. If you have been struggling with finances, approach the government soon.
by: Melva Lynch