The Mortgage Rescue Scheme statistics for the third quarter in 2010 are out. These statistics provide details on the number of households applying for help from the UK government. The scheme has two sections: the Government Mortgage to Rent option and the Shared Equity option. We will start the article with a brief description of the programs and finish with a summary of the program’s statistics.

The Mortgage Rescue Scheme has been in operation since in England since January 2009. The main purpose of the scheme is to help vulnerable households save their homes from foreclosure. The financial crisis

The Programs

The Government Mortgage to Rent option requires a registered social landlord, or RSL, to buy your property and rent it back to you for a more affordable rate. If you choose this option you will be able to stay in your home and lower your monthly housing payments. Of course, this option will mean losing ownership of your home, so it should only be chosen if you have no other way of saving your home from foreclosure.

The Shared Equity option, on the other hand, requires a registered social landlord to provide a loan to reduce the principal balance on your loan and lower your monthly payments. With this option you only lose ownership over a portion of your home which is passed on to the RLS providing the loan.

The Statistics

The statistics are provided on a quarterly basis by the Ministry of Justice and the Council of Mortgage Lenders and are published by the statistician Laurie Thompson on the government website Communities.gov.uk.

From July to September, 2010, 4,559 households approached the England Mortgage Rescue scheme authorities. Of the 4,559 households who asked for help 1,371 received an information pack and personalized advice, while 1,746 were referred to their lenders or Money Advisors. Money advisors provide homeowners with assistance on prioritizing their payments and searching for strategies to save their home. Of the total 4,559 households inquiring about the program, 1,883 were deemed at risk of repossession and categorized as priority cases. Of these 1,883 households at risk of repossession, 484 have already received an offer to either the Government Mortgage to Rent or Shared Equity programs, and 1,598 applicants are still live applications waiting for a resolution.

The English regions with the highest number of applicants are the North West, with 601 live applications and Yorkshire and the Humber with 367 applicants still live in the program.

Conclusion

If you are unemployed or facing other financial setbacks, these statistics may not mean much to you. However, these results do show that help is available for those that seek it. This does not mean you will automatically be accepted to the program, but there certainly is a chance.

Our next article will illustrate these cold numbers with a real life story of a family that benefited from the Mortgage Rescue Scheme and saved their home from repossession.

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