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UK Mortgage Rescue Schemes
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Posted On :
Jul-29-2010
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Article Word Count :
524
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The mortgage rescue scheme sponsored by the government has been designed to help people who are likely to lose their homes for inability to make payments of their home mortgages.
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The mortgage rescue scheme sponsored by the government has been designed to help people who are likely to lose their homes for inability to make payments of their home mortgages. Due to rising job losses, people are finding it very difficult to make both ends meet let alone make home mortgage payments. This failure exposes them to the possibility of foreclosures. To manage this situation, government help with mortgage payments were proposed as a part of the mortgage rescue scheme.
The government mortgage rescue scheme is a direct financial help designed to help vulnerable home owners so that they can retain possession of their homes. This scheme is administered at the council level in England. Similar UK government mortgage help is also available in other parts of the United Kingdom.
Priority Category
The mortgage rescue scheme gives priority to low and medium income families who are finding it difficult to make the mortgage payments due to lack of resources. Even in this category, greater priority is given to elderly, sick, parents and pregnant women. People who own expensive homes or homes with falling prices are not looked upon favourably for the rescue scheme.
Who Can Qualify?
In order to qualify for mortgage government help, you should not own any second home whether it is a holiday home or an investment in the UK or abroad. Moreover, the balance of your mortgage payments should not be more than 120% of your home's market value which in turn should be below a certain level as specified by the council. If the total of the incomes of all members of your family is more than 60,000 pounds a year, then you will not qualify for mortgage rescue scheme.
Procedure For Obtaining Government Loans Mortgage Help
The financial advisers of your local council will provide all necessary help for restructuring your finances and managing your debt in the best possible manner, when you approach them after you have been declared eligible for government mortgage help. After an inspection and appraisal of your home, a Registered Social Landlord (RSL) will be approached by the Mortgage Rescue Scheme for specific and practical help.
The RSL will suggest either a Shared Equity Loan or a Government Mortgage to Rent Program. In the first scheme (Shared Equity loan), you must have at least a 25% equity on your mortgage balance which makes it essential for the market value of your home to be at least 25% higher than what you owe towards the mortgage balance. You can then get this loan which will be designed in such a way that the monthly payment is within your reach.
On the other hand, the Government Mortgage to Rent program is designed for families who cannot afford the monthly mortgage payments. The government will arrange for the RSL to buy the property from you and then rent it to you for the amount that you can afford to pay every month. Although you will not own the home, you will still be able to continue living in it.
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Article Source :
http://www.articleseen.com/Article_UK Mortgage Rescue Schemes_27464.aspx
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Author Resource :
In UK, the government has introduced UK Mortgage Rescue Scheme to help those homeowners who are unable to make their monthly mortgage payments and are likely to lose their homes. Many helpless homeowners are benefitting from the UK government mortgage help to save their homes.
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Keywords :
Mortgage Rescue Scheme, government Mortgage Rescue Scheme, UK government mortgage help, government help with mortgage payments,
Category :
Finance
:
Finance
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