Mortgage Rescue Scheme in Dartford
- Mortgage Rescue Scheme in Dartford
- Homeowners Mortgage Support Scheme
- Are you worried about your mortgage?
Mortgage Rescue Scheme (MRS) in Dartford
Dartford’s struggling families facing the threat of repossession are being thrown a lifeline by way of the £200m government Mortgage Rescue Scheme (MRS). Designed to prevent the most vulnerable families losing their homes by reducing monthly mortgage payments the scheme is predicted to prevent homelessness for up to 6,000 households over the next two years. Homeowners have two options available which are for Moat Housing Association to clear the debt and then the homeowner would become the tenant and pay rent to Moat or for Moat to give an equity loan to help reduce the homeowners monthly mortgage payments.
The council has primary responsibility for preventing homelessness and is the first point of contact for households in mortgage difficulties or referring agencies. A dedicated contact for all enquires and for processing of initial applications known as a "Mortgage Rescue Champion" has been nominated and can be contacted on 01322 343018.
As the central coordinator for the borough the council will:
- Assess if a household meets the MRS criteria
- Process the MRS application
- Collate supporting evidence
- Refer successful applicants to Moat
Other key organisations are:
- The Citizens Advice Bureau provides assessments of homeowner’s financial ability in home ownership and prepares financial statements to give an indication of the likely type of rescue appropriate. A financial statement must be completed by CAB to be eligible for help. Advice will be given on maximising income and tackling debt issues and the risk of repossession in the first place.
- Lenders who have a range of hardship options to help households in mortgage difficulties to avoid repossession and many options don’t need local authority involvement.
- Moat Housing Association will assess each case and decide on the best product (equity loan or Government mortgage to rent) to help the homeowner.
For more information please call 01322 343114 or email housing.advice@dartford.gov.uk or visit the Mortgage Rescue Scheme Information from DirectGov website (www.direct.gov.uk)
Homeowners Mortgage Support Scheme (HMS)
On the 21 April 2009, the government launched the HMS scheme, which is designed to help homeowners struggling to pay their mortgages because of a sudden drop of income due to the economic downturn.
If eligible, the lender may agree to delay some of the homeowner’s monthly interest payments for up to two years. But the interest is not written off and will eventually have to be paid back. So it is not a payment holiday, but instead provides some breathing space until the homeowner gets their finances back on track.
If you are having trouble paying your mortgage, talk to your lender as soon as possible, who will look at a range of options for you. If all options have been explored, as a last resort you can apply for HMS through your lender direct, but this is subject to certain eligibility criteria. If approved, you must agree to pay as much as you can afford and at least 30% of the interest due.
HMS does carry certain risks. For example, your debt will increase and you will end up paying more than you planned for; afterwards, your monthly interest payments will be higher or you may need to extend your mortgage to repay the amount you have put off; your home may go down in value; and, if you stop payments your home can still be repossessed.
It is always a good idea to seek independent money advice as well as speaking to your lender if you are having problems paying your mortgage. Shelter Kent (North) Housing Aid can provide you with free, independent and impartial advice. Contact them straight away on 0844 5151740.
Frequently Asked Questions about Homeowners Mortgage Support Scheme
Homeowners Mortgage Support Scheme leaflet (PDF,742 KB) from the Communities and Local Government Website
