If you are facing repossession, the Mortgage Rescue Scheme could help you stay in your home by making your mortgage repayments more affordable. Mid Suffolk Council is working with the Citizens Advice Bureau (CAB) and Orbit Homebuy to help households who are eligible to access this scheme.

Who can get help through the Mortgage Rescue Scheme?

To be eligible for the scheme your household must include someone in 'priority need'. This could be:

• someone who is pregnant
• someone with a dependant child
• someone who is vulnerable because of old age or a physical or mental illness

You also need to meet the following criteria:-

• All owners of your home must agree to be considered for the Mortgage Rescue Scheme
• You must have sought debt counselling and advice and agreed to arrangements to pay off your debts
• You should have discussed all other options to meet your repayments with your mortgage lender
• Your household must earn less than £60,000 a year
• The value of your home should not be higher than £200,000
• You must have a clear need to remain in your home and be unable to move somewhere smaller or cheaper
• Your home must be suitable for your household e.g. it must not be overcrowded
• You must not own a second home in the UK or abroad
• You must not be in negative equity (the amount owed on your mortgage must not be greater than the value of your home)

How does the Mortage Rescue Scheme work?

If you are at risk of losing your home because of mortgage arrears you should contact our Housing Options Team on the telephone below.

Following an initial assessment to determine if you are likely to be eligible, the Council will arrange for you to see a CAB money advisor. They will help you to draw up a plan to manage your debt and prepare a financial statement. Before mortgage rescue can be considered other options that lenders can offer must have been exhausted. This includes extending the term of the loan, adding the arrears to the amount borrowed, reducing the monthly payments for an agreed period, moving to a better interest rate or being given time to sell.

Depending on your circumstances, Orbit Homebuy may help you either with a ‘shared equity loan’ or through ‘government mortgage to rent’.

Shared equity loan

Orbit Homebuy can provide a shared equity loan, which means they will pay off a proportion of your mortgage. In return they receive a share in your property’s ‘equity’ – the market value of your home minus the outstanding mortgage balance. They will agree on the proportion, which could be between 25 and 75 per cent of the total mortgage. It will be based on the assessment of your household’s finances. This will reduce your mortgage to a more affordable level so you can continue to make repayments.

Government mortgage to rent

Orbit Homebuy may suggest a Government mortgage to rent, which means they will pay off your mortgage completely by buying the property. You’ll be able to stay in your home and make repayments as their tenant at a level you can afford.

You’ll continue to receive advice after you have entered the scheme to help you manage your finances.

For more information please contact the Council’s Housing Options Team using the details below or visit the Direct Gov website by clicking here.

Contact details

Department: Housing Options
Address: Mid Suffolk District Council, Council Offices, 131 High Street, Needham Market, Suffolk, IP6 8DL
Telephone: 01449 724754 or 724761