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Mortgage rescue scheme

A lifeline to homeowners facing repossession.
“We help homeowners facing repossession”

South Derbyshire District Council have been working with East Midlands Housing (EMH) group, since 2009,who has been spearheading a Government initiative offering a lifeline to homeowners whose properties are at risk of repossession.

The group is part of the national Mortgage Rescue Scheme (MRS) and this year £135 million has been made available to help households facing repossession across England. The scheme will close in March 2013. Up to May 2012, East Midlands Housing and Local Authorities have helped 285 families threatened with repossession to stay in their own homes across, Derbyshire, Leicestershire and Nottinghamshire.

To qualify for the scheme, householders must be in a priority need group, such as families with children, elderly residents or people with disabilities and have an income of less than £60,000.

You can be referred to the scheme by advice agencies; the Citizens’ Advice Bureau or Shelter, your mortgage lender or the courts, but you can also contact your our Housing Options Team Tel: 01283 595778 directly to get advice about Mortgage Rescue.

When you apply for help from the scheme, we will refer your case to EMH Group who can assist in two ways.

  1. An Equity Loan can be offered to reduce your monthly repayments. You will pay a low monthly interest-only charge on the loan. You must have between 25%-40% equity in your property to qualify, i.e. your mortgage is not worth more than 75% of the property’s value.

  2. The second option is the Government Mortgage to rent option which means EMHA will buy your home for 90% of its market value. You must have no more than 20% equity in your property and they can also assist in cases of negative equity. You will stay in your home and pay rent as a tenant.  The rent will be 20% less than the market rent for your area.

For more information please telephone our Housing Options Team Tel: 01283 595778.

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