The HCA has now written to its investment partners as part of its plans to widen the pool of associations offering Mortgage Rescue, to be prepared for an increasing number of applications. The letter outlines the Agency’s confidence that the sector has the capacity to cope with this increase, and renews its commitment to flexible grant rates in light of a greater number of homeowners for whom renting their home from a housing association will be the best option.
HCA chief executive, Sir Bob Kerslake, said: "These are tough times for everyone and the sector needs to make help more widely available. But with the commitment shown by Associations like Orbit and Great Places, for example, I am confident that we have the capacity to cope with any rise in applications for Mortgage Rescue. Despite increasing pressures on finite resources, when it comes to the crunch we will all stretch ourselves to meet the level of need."
The Government’s Mortgage Rescue Scheme, launched in January is designed to help struggling homeowners who would ordinarily face repossession, to remain in their home by either selling it to a housing association and renting on a social tenancy, or selling part of their home on a shared equity basis. For the majority of applicants renting their home back from a housing association has proved to be the best option.
To date over 3500 households at risk of repossession have approached their Local Authority for assistance. Of those, many avoid repossession through other routes including lender flexibility, debt management and financial advice, and local authority support and advice on other options.
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