Fast-track mortgage rescue arrangements
A cross-government package of new measures and reforms to provide help to families at risk of repossession has been included in the Government's pre-budget report.
The package includes arrangements to "fast-track" the Mortgage Rescue scheme in seven London local authority areas. The measures are the next steps in a wide range of support the Government is putting in place to make sure that hard working people who suffer a loss of income through no fault of their own have the option to stay in their homes, and that repossession is always a last resort.
The measures include agreement with major lenders to wait at least three months before initiating repossession proceedings, in order to explore all other alternatives. The Government has also welcomed the commitment by lenders to look at all possible options to prevent repossession, such as reducing payments and mortgage rescue schemes.
Another measure includes bringing forward the Government's £200 million Mortgage Rescue scheme to start early in a number of local authority areas. More than 60 councils throughout England will be "fast-tracking" the set up of the Mortgage Rescue scheme and will start taking applications from the beginning of December. The scheme will help up to 6,000 of the most vulnerable households avoid the trauma of repossession over the next two years.
The "fast-track" local authorities in London are:
- Greenwich
- Harrow
- Havering
- Hillingdon
- Lewisham
- Waltham Forest
- Westminster City Council