The Mortgage Rescue Scheme was launched by the Government in January 2009.  The scheme aims to help families with dependent children, older people and vulnerable groups who are at risk of repossession (that is, their lender is actively seeking possession of their property through the courts), who can no longer afford their mortgage repayments, and who would be entitled to homelessness assistance if repossessed.

Two organisations in the North East, Fabrick in Middlesbrough and ISOS in Gosforth, are co-ordinating the scheme and have already rescued a number of homes in the region.

In simple terms, homeowners can apply to their local housing association for them to buy their home. The applicant then continues to live in the property but pays rent to the housing association.

A number of conditions apply to the scheme and applicants must have a mortgage of no more than 120%. In some cases it may also be possible for applicants to buy their home back but each housing association will have its own rules around this.

More information

Anyone who is struggling to pay their mortgage and is in danger of being repossessed can contact the following for more information:

• Isos Housing at www.isoshousing.co.uk/homebuy/isitforme/mortgagerescue.htm
• Time2Buy at www.time2buy.org.uk/Mortgage_rescue.php