Member Article

Oldham partners scheme to help with mortgage problems

A housing association is working with Oldham Council and other partners to help homeowners who are struggling to keep up with their mortgage repayments.

The Mortgage Rescue Scheme is aimed at vulnerable homeowners who are facing repossession.

The scheme is run by partnership between First Choice Homes Oldham, the Oldham Citizens Advice Bureau, and the borough council. Residents can get advice and support to help them keep their home.

First Choice Homes is a not-for-profit association which manages around 12,000 homes in the Oldham area.

Under the terms of the initiative, a housing association may buy your home from you and then you become a tenant and pay rent to continue living there.

Oldham Council was the first local authority in the North West to complete a mortgage rescue scheme and since the launch of the initiative three years ago, 54 households have been rescued in the Borough, with a further 11 cases in the pipeline.

Councillor Dave Hibbert, Cabinet Member for Environment and Housing, said: “Our residents, like many across the country, are experiencing tough economic times.

“The knock-on effect means that, through no fault of their own, people are losing their jobs and risk falling into arrears because they cannot afford to pay their mortgages.

“If anybody finds themselves in this predicament, I would urge them to contact their lenders as soon as possible. The company may be able to consider a temporary payment holiday, reduced payments, or an extension to the length of their mortgage to reduce overall payments.

“However, as a Council we are also doing our bit to help homeowners to stay in their properties, as we do not want to see anyone lose their homes. The Mortgage Rescue Scheme offers a lifeline to eligible homeowners who have exhausted other options.”

According to latest figures from the Council of Mortgage Lending (CML), a total of 33,900 properties were repossessed in England during 2012.

The CML forecasts that a further 35,000 homes will be repossessed due to mortgage arrears during 2013.

This was posted in Bdaily's Members' News section by Simon Malia .