What is Homeowners Mortgage Support?

 

The Homeowners Mortgage Support scheme was set up by the UK Government to help homeowners who were struggling with their mortgage. The scheme was introduced in 2009 by the then Government in response to the growing numbers of homeowners who were experiencing difficulties as a result of the economic downturn.

The aim of the scheme was to provide temporary financial relief, allowing homeowners some respite until their financial situations were stabilised.

Homeowners Mortgage Support

Homeowners Mortgage Support was available both for shared ownership and shared equity properties. The scheme essentially allowed homeowners to delay paying a part of their mortgage for up to two years.

The part of the mortgage repayment deferred was not written off, and instead was added to the remaining payments. Homeowners could not therefore avoid contributing at all, and any relief was then repaid later.

There were a number of conditions to be satisfied in order to qualify for the scheme. Homeowner Mortgage Support was only available to those who have lost a significant amount of income on a short-term basis, for example due to a redundancy, reduced hours or overtime or those with new caring responsibilities.

You must have switched to an interest-only mortgage, and you must still contribute at least 30% of the interest due each month. Other conditions included a cap on the total value of the mortgage, and a limit on the value of savings a homeowner may have.

What is the current law on mortgage relief?

The Homeowner Mortgage Support scheme was formally closed on April 21st 2011. Any homeowners already in the scheme can still benefit from it, but no new applications are being processed.

The Government hopes that relief available under their Mortgage Relief Scheme will help take up the slack left by the closure of this scheme. If you are in the scheme you should contact your solicitor for the latest legal advice and updates on the scheme’s operation.

If you cannot afford your mortgage repayments you should contact your lender at the earliest opportunity. There are other schemes aside from the Homeowners Mortgage Support scheme that can provide financial support to help you keep your home. If you are threatened with repossession, you should take legal advice from a solicitor.

Were you previously under the Homeowners Mortgage Support scheme, or do you now need some mortgage relief? Contact Law can put you in touch with a specialist financial advisor to help you organise your finances. Please call us on 0800 1777 162 or complete the web-form above.

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