With the ongoing economic depression, a mortgage rescue scheme eases the financial pressure of many people. The percentage of people with mortgages in the UK is quite large. The economic slump has affected many people adversely, especially those in the middle to lower income bracket. This scheme aims to provide relief to the people who find it hard to repay their mortgage or are in the danger of falling behind on their payments. The mortgage rescue scheme is for all people living in the United Kingdom. You must qualify the eligibility criterion before you can avail this scheme. This program, though for many people, focuses on higher priority cases like pregnant women, parents, sick, or elderly.

The Eligibility Criterion

This scheme is available only for people from lower to middle income bracket. Pregnant women, parents, sick, or elderly persons are eligible for this scheme. Apart from these persons, this scheme aims to help many more.

The official eligibility criteria for the mortgage rescue scheme are those people who do not own a second home. It does not matter whether your other house is not in the same area, if you possess two houses, you cannot benefit from this scheme. Your total household income should be no more than £60,000 per year. The market value of your house should be within the market value of that particular region. You can consult your council to find out the level in your area. The mortgage that you have on your house should not exceed 120% of its market value. For example, if your house's market value is £80,000 your mortgage amount should not exceed more than £100,000.

If You Are Eligible

If you qualify for the mortgage rescue scheme, consult the financial advisers in your council. They will advise you on what you should do to safely handle your debts and organise your finances. They will appraise your home. The scheme will then go to the Registered Social Landlord and it will offer you two ways to pay your debt. You can opt for either a Shared Equity Loan or a Government Mortgage to Rent Program. The former is a loan given only on interest so that you can manage your monthly payments. For this, the market value of your house must be 25% greater than the mortgage amount you owe. The latter is for drastic situations when you desperately want to stay in your home but cannot afford to. The government in such a case will buy your house for 97% of the market value and will let you live there by paying a reduced rent rate.