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| Help for those who face losing their home | Help for those who face losing their home |
| (about 1 hour later) | |
| By Kevin Peachey Personal finance reporter, BBC News The property market has been through a major slump | By Kevin Peachey Personal finance reporter, BBC News The property market has been through a major slump |
| A glut of schemes have been set up to help householders at threat of having their homes repossessed - but how successful are they? | A glut of schemes have been set up to help householders at threat of having their homes repossessed - but how successful are they? |
| Authorities say that new schemes, allowing families to sell up to a housing association or local or national authority and become tenants in their homes, are taking time to complete. | Authorities say that new schemes, allowing families to sell up to a housing association or local or national authority and become tenants in their homes, are taking time to complete. |
| To date, no families have completed the process in Scotland, 15 were finished by the end of June in England, and Northern Ireland is still waiting for funding to start the project. However, 70 families have been through the scheme in Wales. | To date, no families have completed the process in Scotland, 15 were finished by the end of June in England, and Northern Ireland is still waiting for funding to start the project. However, 70 families have been through the scheme in Wales. |
| Various other projects have also been launched aiming to help those falling behind on mortgage repayments. The latest repossession figures will be published at 0930 BST on Friday. | Various other projects have also been launched aiming to help those falling behind on mortgage repayments. The latest repossession figures will be published at 0930 BST on Friday. |
| Homeowner Mortgage Support Scheme Mortgage Rescue Scheme - England Mortgage Rescue Scheme - Wales Mortgage Rescue Scheme - Scotland Mortgage Rescue Scheme - Northern Ireland Court Protocol - England and Wales Court Protocol - Northern Ireland | Homeowner Mortgage Support Scheme Mortgage Rescue Scheme - England Mortgage Rescue Scheme - Wales Mortgage Rescue Scheme - Scotland Mortgage Rescue Scheme - Northern Ireland Court Protocol - England and Wales Court Protocol - Northern Ireland |
| HOMEOWNER MORTGAGE SUPPORT SCHEME | HOMEOWNER MORTGAGE SUPPORT SCHEME |
| Started: April 2009 | Started: April 2009 |
| Coverage: UK | Coverage: UK |
| Cost: Estimate of up to £44m | Cost: Estimate of up to £44m |
| What is it? This allows homeowners to defer up to 70% of their mortgage interest payments if they have a sudden loss of income, such as redundancy. | What is it? This allows homeowners to defer up to 70% of their mortgage interest payments if they have a sudden loss of income, such as redundancy. |
| Owner-occupiers who bought their homes before December 2008 and who have a "temporary" loss of income are eligible. | Owner-occupiers who bought their homes before December 2008 and who have a "temporary" loss of income are eligible. |
| They must have a mortgage of less than £400,000 and household savings of less than £16,000. | They must have a mortgage of less than £400,000 and household savings of less than £16,000. |
| Monthly repayments can be cut to 30% of the original level and the rest of the payment deferred for up to two years. | Monthly repayments can be cut to 30% of the original level and the rest of the payment deferred for up to two years. |
| But only a handful of banks - primarily those which received government assistance - have signed up to take part. Building societies say they already have a similar system on a case-by-case basis. | But only a handful of banks - primarily those which received government assistance - have signed up to take part. Building societies say they already have a similar system on a case-by-case basis. |
| How many are signed up? Figures will be released later in the year. | How many are signed up? Figures will be released later in the year. |
| Return to top | Return to top |
| MORTGAGE RESCUE SCHEME - ENGLAND | MORTGAGE RESCUE SCHEME - ENGLAND |
| Started: January 2009 | Started: January 2009 |
| Coverage: England | Coverage: England |
| Cost: £280m over two years | Cost: £280m over two years |
| What is it? The scheme allows not-for-profit housing associations to buy homes from people struggling to pay their mortgage and then allows the former owners to continue living there by paying "affordable rent". | What is it? The scheme allows not-for-profit housing associations to buy homes from people struggling to pay their mortgage and then allows the former owners to continue living there by paying "affordable rent". |
| The government said when it was launched that it had the potential to help 6,000 families to avoid repossession. | The government said when it was launched that it had the potential to help 6,000 families to avoid repossession. |
| It was extended in April to include homeowners suffering from negative equity, not just those at the most immediate risk of losing their homes. | It was extended in April to include homeowners suffering from negative equity, not just those at the most immediate risk of losing their homes. |
| How many are signed up? Fifteen families had completed the process by the end of June. Another 46 received offers from social landlords and 274 households had the threat of repossession halted in June. | How many are signed up? Fifteen families had completed the process by the end of June. Another 46 received offers from social landlords and 274 households had the threat of repossession halted in June. |
| Return to top | Return to top |
| MORTGAGE RESCUE SCHEME - WALES | MORTGAGE RESCUE SCHEME - WALES |
| Started: June 2009 | Started: June 2009 |
| Coverage: Wales | Coverage: Wales |
| Cost: £9.5m for this financial year | Cost: £9.5m for this financial year |
| What is it? Those whose main or only home has been set up for repossession can get a housing association to take a share of the property, or the association can buy the home and allow the previous owners to live there as tenants. | What is it? Those whose main or only home has been set up for repossession can get a housing association to take a share of the property, or the association can buy the home and allow the previous owners to live there as tenants. |
| The owners are eligible if repossession means they will be left homeless, and they are unable to sell the property and buy a cheaper home locally. | The owners are eligible if repossession means they will be left homeless, and they are unable to sell the property and buy a cheaper home locally. |
| How many are signed up? To date, 70 families are now tenants in their homes, with another 77 in the process of having their homes bought. | How many are signed up? To date, 70 families are now tenants in their homes, with another 77 in the process of having their homes bought. |
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| MORTGAGE RESCUE SCHEME - SCOTLAND | MORTGAGE RESCUE SCHEME - SCOTLAND |
| Started: March 2009 | Started: March 2009 |
| Coverage: Scotland | Coverage: Scotland |
| Cost: £35m over two years | Cost: £35m over two years |
| What is it? Two schemes operate in Scotland, where the legal process of repossession is different to England and Wales. | What is it? Two schemes operate in Scotland, where the legal process of repossession is different to England and Wales. |
| In the Mortgage to Shared Equity scheme, the Scottish Government takes a financial stake in the property of an owner who is in danger of being made homeless owing to repossession. | In the Mortgage to Shared Equity scheme, the Scottish Government takes a financial stake in the property of an owner who is in danger of being made homeless owing to repossession. |
| The householder retains ownership and must have at least 25% equity in their home. They will enter into an agreement with the government after having their secured debt reduced to a "manageable level". | The householder retains ownership and must have at least 25% equity in their home. They will enter into an agreement with the government after having their secured debt reduced to a "manageable level". |
| The Mortgage to Rent scheme is an updated version of a programme in place since 2003. The property is sold to a local authority or housing association and the former owner becomes a tenant. Social rent is charged and a government subsidy pays for the property to be brought up to a decent standard of repair. | The Mortgage to Rent scheme is an updated version of a programme in place since 2003. The property is sold to a local authority or housing association and the former owner becomes a tenant. Social rent is charged and a government subsidy pays for the property to be brought up to a decent standard of repair. |
| How many are signed up? Since March, no applications have been completed under the new Mortgage to Shared Equity scheme. The government says this is because the process takes time. Some 260 applications have been made since March, of which 220 are still being processed. | |
| Under the updated Mortgage to Rent scheme, the government says that 105 cases have been completed since March, with the original scheme having helped 900 households since 2003. | |
| Previous versions of the story showed that under both forms of scheme, no households had completed the process since March.The Scottish government has since corrected these figures. | |
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| MORTGAGE RESCUE SCHEME - NORTHERN IRELAND | MORTGAGE RESCUE SCHEME - NORTHERN IRELAND |
| Started: Not yet, awaiting funding. | Started: Not yet, awaiting funding. |
| Coverage: Northern Ireland | Coverage: Northern Ireland |
| Cost: The Northern Ireland Assembly wants £5m a year from central government. | Cost: The Northern Ireland Assembly wants £5m a year from central government. |
| What is it? Similar to the Welsh scheme, the proposed programme has two elements: a shared equity option or a home being bought by a housing association with the former owner retained as a tenant. | What is it? Similar to the Welsh scheme, the proposed programme has two elements: a shared equity option or a home being bought by a housing association with the former owner retained as a tenant. |
| The rent and equity levels would be dependant on what people unable to keep up mortgage repayments can "reasonably afford". | The rent and equity levels would be dependant on what people unable to keep up mortgage repayments can "reasonably afford". |
| The scheme was "ready to go" but needed funding from central government, a spokesman for the Department for Social Development said. | The scheme was "ready to go" but needed funding from central government, a spokesman for the Department for Social Development said. |
| How many are signed up? None yet - it is still a proposal - and no estimates have been revealed. | How many are signed up? None yet - it is still a proposal - and no estimates have been revealed. |
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| COURT PROTOCOL - ENGLAND AND WALES | COURT PROTOCOL - ENGLAND AND WALES |
| Started: January 2009 | Started: January 2009 |
| Coverage: England and Wales | Coverage: England and Wales |
| What is it? This sets out exactly what a lender needs to do before taking action to repossess a home. The government in Scotland has pledged to bring in its own protocol along the same lines after a report by industry experts called for more protection for homeowners under threat. | What is it? This sets out exactly what a lender needs to do before taking action to repossess a home. The government in Scotland has pledged to bring in its own protocol along the same lines after a report by industry experts called for more protection for homeowners under threat. |
| In England and Wales, a lender must prove in a repossession hearing that they have: | In England and Wales, a lender must prove in a repossession hearing that they have: |
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| Funding has been doubled for 76 court desks across the country offering free on-the-day advice and representations for those threatened with repossession, the Department of Communities and Local Government says. | Funding has been doubled for 76 court desks across the country offering free on-the-day advice and representations for those threatened with repossession, the Department of Communities and Local Government says. |
| How many helped? The Department of Communities and Local Government says that 116,000 families have benefitted from greater tolerance by lenders in general. | How many helped? The Department of Communities and Local Government says that 116,000 families have benefitted from greater tolerance by lenders in general. |
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| COURT PROTOCOL - NORTHERN IRELAND | COURT PROTOCOL - NORTHERN IRELAND |
| Starting: 5 October 2009 | Starting: 5 October 2009 |
| Coverage: Northern Ireland | Coverage: Northern Ireland |
| What is it? Very similar to the agreement in England and Wales, in that lenders must demonstrate that there is no reasonable alternative before a home can be repossessed. | What is it? Very similar to the agreement in England and Wales, in that lenders must demonstrate that there is no reasonable alternative before a home can be repossessed. |
| The Housing Rights charity has been given extra funding, allowing it to have four full-time housing debt advisers and a court representation officer based at the High Court two days a week. | The Housing Rights charity has been given extra funding, allowing it to have four full-time housing debt advisers and a court representation officer based at the High Court two days a week. |
| How many helped? Yet to start | How many helped? Yet to start |
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