Council 'rescue service' to tackle house repossessions

Money

Homeowners who are on the brink of repossession are being offered a “rescue service” from Rochdale Borough Council.

The central Government scheme, filtered through local councils, will offer help to people who have fallen into danger of losing their home during the economic downturn.

The council claims to already offer free finance and debt advice, but has announced a new package to help rescue those who are drowning in debt.

Equity loans will be available to those who have between 25-40% equity in their mortgage, given by a registered social landlord, meaning mortgage payments can be reduced.

Also, a Government Mortgage to Rent scheme has been launched to help the most vulnerable households with 3-25% equity on their mortgages. In this case, a registered social landlord will buy the property at full market value, clear the debt and rent it back at an affordable rate.

Councillor Doreen Brophy-Lee, cabinet member for housing on Rochdale Borough Council said: “The current economic downturn is creating many challenges in the housing market and we want to support the borough’s most vulnerable residents during this time.

“We have already identified several households in the borough that might benefit from this service but we want to make sure that everyone who is eligible for this scheme is helped in some way.”

Rochdale Borough Council says that staff have been trained, resources are in place and arrangements have been made to ensure that the service will link to other agencies such as the Citizens Advice Bureau and Age Concern.

Free and impartial financial advice is also available to anyone who is worried and their mortgage payments.

Anyone who feels they may qualify for this service should contact the council on 01706 926671 to find out if they are eligible for help and support.