Camden pilots new mortgage rescue scheme for struggling homeowners

I'm delighted that Camden has been selected as a pilot authority for the Government's mortgage rescue scheme, which has £200m available nationally. The scheme allows Camden homeowners who are at risk of losing their homes to get help administered by Metropolitan Housing Association.

Anyone having difficulty paying their mortgage should contact their mortgage lender first, or the Council’s housing options and advice service (private sector team) who will offer advice and information and make referrals to Metropolitan Housing Association. Those eligible will be offered one of two options. Home owners who have had difficulties in keeping up payments but are likely to be able to afford home ownership again in the future will be given an opportunity to sell a share of their house to Metropolitan Housing Association. This would mean cheaper monthly payments with the option to buy back their share again in the future.

For those with little hope of sustaining a mortgage, the second option available is to sell their home to the housing association but remain in the home as a tenant, paying an affordable, below market level rent. In both cases of course the families remain in their homes.

The Council is already doing a great deal to help local people and businesses affected by the recession, see here, and when we publish our council budget and council tax plans on the 13th February, we will be outlining further measures.