Mortgage support schemes launched
http://news.bbc.co.uk/go/rss/-/1/hi/scotland/7946469.stm Version 0 of 1. Two government schemes to help householders struggling with their mortgage payments have been launched. Homeowners will be able to enter into a shared equity arrangement with housing associations and the current "mortage to rent" scheme is also being extended. Housing Minister Alex Neil said he was putting £35m behind the schemes over the next two years. Shelter said the schemes should be promoted more as its research had shown many people did not know about them. Before the financial downturn, £25m had been allocated to the initiatives, but ministers announced in January that this would be boosted by £10m. The shared equity scheme allows the Scottish Government to take a financial stake in the home of those who may be about to be made homeless because of mortgage arrears. People need to be told about these new rights Graeme BrownShelter Scotland Independent financial advisers will assess each application and recommend what stake ministers should take, but homeowners must have at least 25% equity in their properties. Applicants must also get their lender to agree to the move and cannot apply until they are more than three months in arrears. The mortgage to rent initiative, which was first introduced in 2003, helps people threatened with repossession to stay in their home but as tenants of a social landlord such as a local authority or housing association. Mr Neil said: "It's important that those facing the risk of repossession seek urgent independent money advice. "It may be possible, for example, to try and reach agreement with any secured lender before considering other forms of support. "Only then can they make an informed decision about whether the support fund is an option that suits their needs." 'Promote them' He said a "repossessions group" was investigating whether legal protection for homeowners needs strengthening. The initiatives were welcomed by the housing and homelessness charity Shelter Scotland. It called for a publicity drive because it claimed recent research suggested that many people did not know about mortgage rescue schemes. Graeme Brown, director of Shelter Scotland, said: "People need to be told about these new rights and where they can access impartial support and advice about them. "At a time when repossessions are on the rise, we need to make sure all advice providers are telling people about these schemes and the Scottish Government and local authorities are doing as much as possible to promote them." |