A new mortgage rescue scheme, which will see not-for-profit housing associations buy homes from people struggling to pay their mortgage, has launched today.
Under the £200m scheme, successful applicants would be allowed to remain in their property either as tenants paying an affordable rent or as owners after receiving an equity loan from a housing association to help cut their mortgage costs. Once their financial situation has improved, they can pay back the loan in part or full.
The Government has estimated around 6,000 households will benefit from the scheme.
Belinda Porich, head of the London Region at the National Housing Federation, said: “This is an innovative and welcome scheme which will play its part in providing struggling Londoners with long-term stability. The scheme will also help undermine shadowy companies buying up properties at substantially less than the going rate – and then only letting people stay on a short-term tenancy basis.”
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