The Mortgage Rescue Scheme has been running in the UK since January 2009. Its purpose is to provide vulnerable families who are at risk of losing their home with financial assistance and alternatives to a repossession from their lender. There are two main avenues homeowners can go for when applying for the Mortgage Rescue Scheme: The Government Mortgage to Rent option and the Shared Equity option. Although these schemes have received a lot of publicity and interest from the public, has the program been successful? Has it accomplished what it set out to do? The statistics for the first quarter of 2011 have just been released. They tell a story that although far from a one-size-fits-all solution to the issue of repossession, does seem to be providing some respite to struggling homeowners throughout England.

It is worth noting that the two options available in the Mortgage Rescue Scheme are from the only options available to lenders. Lenders have several methods at their disposal to reduce monthly payments and help low-income families save their homes. These methods include short term reduction of mortgage payments, prioritize debts and increase the term of a loan. However, when these options fail or the lender will not consider an alternative, it may be time to consider a Mortgage Scheme.

The Welsh Assembly Government manages the Mortgage Rescue Scheme in Wales. Its main purpose is to provide aid to residents who are owner and occupiers of and who are at risk of losing their homes to a repossession.

How does the Mortgage Rescue Scheme Operate?

The Mortgage Rescue Scheme provides eligible homeowners with two options. Those homeowners who are struggling to make their payments but could afford reduced monthly payments are given the opportunity of applying for a housing association equity loan that will help reduce their monthly mortgage payments. Homeowners who cannot afford the reduced mortgage payments can sell their home to the housing association and remain in the house as tenants. Which option is best for you will depend on your personal circumstances.

In the first part of this article we discussed the first (and most important) step you must take to avoid defaulting on your mortgage and losing your home to a repossession in the UK. You see, in Scotland, North Ireland, Wales and England the law requires lenders to follow a pre-action protocol. This set protocol manages the repossession process and forces lenders to help borrowers find different ways to repay their mortgage. Once you have have contacted there are further steps you must take to guarantee you are doing everything you can to save your home.

Step 2. Get free help from a professional money advisor.

372 people will declare bankruptcy today, and tomorrow and the day after in the United Kingdom. In many of those cases the principal cause is a bad mortgage, which also leads to the borrower losing his or her home. What can you do to avoid becoming a statistic. This two-part article will analyze the main steps you should include in your personal mortgage rescue scheme. Obviously every case is different, so you will need to adapt it to your personal circumstances.

Since the Support Mortgage Interest, SMI, program commenced there have been significant changes in its rules. This can be confusing for homeowners, especially those who have started receiving SMI financial aid recently. This article will summarize some of these changes and explain how your SMI is calculated. For those interested in knowing what the SMI is and who can apply, read the previous article in this series: Support for Mortgage Interest.

Changes to SMI

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