The Homeowner Mortgage Support Scheme

Written by PayPlan on 21 April 2009

Today (Tuesday 21st April 2009) sees the launch of a new government backed initiative that is intended to provide greater assurance to homeowners that they will be able to remain in their homes if they suffer a temporary fall in income but are expected to recover at a later date.

What is the HMS?

The new scheme will give homeowners who are experiencing financial problems sufficient time to find new employment or recover income, without the added concern and stress of potentially losing their home in the interim. The scheme will allow lenders to reduce a borrower’s current monthly mortgage payments, with the deferred payments rolled up, added to the principle, and paid at a later date when the borrower’s financial circumstances have improved.

For the official Press Release by the government, please click here to view the (PDF).

How do I find out more?

The scheme is voluntary and subject to eligibility criteria to ensure that there is proper risk sharing between government, lenders and borrowers and the scheme is sustainable for those that participate. You will need to have received formal money advice from a money advice provider, such as Payplan, for your application to be considered.Please click the link to be directed to either the CLG or Direct Gov website for eligibility criteria and details on how to apply.

www.direct.gov.uk/hms

www.communities.gov.uk

For the official guide to the Homeowners Mortgage Support, please click here to view the (PDF)

Mortgage Rescue Scheme (MRS)

If you are having difficulty making your mortgage repayments and at risk of becoming homeless you could get help to stay in your home. You’ll need to meet the eligibility criteria to get help from the Mortgage Rescue scheme. The Mortgage Rescue scheme won’t help people in ‘negative equity’, which is when the amount owed on your mortgage is more than the value of your home.

What is the MRS?

Depending on your circumstances, and providing you meet the eligibility criteria, the scheme may help you either with a ‘shared equity loan’ or through a ‘Government mortgage to rent’. It is available in England only (separate schemes are under developments for clients in Wales, Scotland and Northern Ireland).

How do I find out more?

You can be referred for help through the Mortgage Rescue scheme by advice agencies (such as Payplan), courts or lenders. You can also contact your local council for advice. Please click the link to be directed to either the CLG or Direct Gov website for eligibility criteria and details on how to apply.

www.communities.gov.uk

www.direct.gov.uk


Filed under Archive

This article was checked and deemed to be correct as at the above publication date, but please be aware that some things may have changed between then and now. So please don't rely on any of this information as a statement of fact, especially if the article was published some time ago.

9 thoughts on “The Homeowner Mortgage Support Scheme”

  • pete hatton

    October 18, 2010 at 6:15 pm

    made redundant in jan arrears legal action commenced great advice

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  • Stephen Smeeton

    February 24, 2011 at 3:45 am

    I am having 2 pay, from 28th March 2011, £201 per month and I am currently claiming JSA. This is because the Jobcentre have stopped paying the interest because of a time limit so I have had 2 come 2 some sort of arrangement with my lender to a pay mortgage interest only which felt like my only option…is there anyway you can help?

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    • Lizzy

      February 25, 2011 at 4:06 pm

      Hi Stephen, it wouldn’t harm you to call our helpline and see if their is something that we could do. I obviously don’t know the in’s and out’s of your situation but if you speak to one of our trained advisors they will be able to hopefully help you. Let me know how you get on. Lizzy

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  • dennis jagroop

    March 18, 2011 at 6:53 pm

    i would like to know what will happen , i am in the process of my house being repossessed I have kept up as much payment has i can , i am retired and also my wife is not working, i have two grown up children living at home with me , they have their children of 8 weeks, and 3 years, i went to the council today , they told they are looking into it, do they have power to evict people with small children also..

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    • Lizzy

      March 21, 2011 at 11:39 am

      Hi, I think the best thing for you to do is call us and one of our trained debt advisors will be able to give you all of the information that you need. The number is 0800 2802816 and our lines are open from 8am until 9pm.

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  • Jacky

    June 16, 2011 at 7:50 pm

    I have sought advice and am considering taking out a debt management plan to reduce my outgoings on my credit cards and loan. Whilst I know my credit rating will be affected I am concerned my husbands credit rating will also be affected as he is at the same address and has a shared morgage with me. However all of the credit cards and loans in the plan are only in my name. My husband is also concerned if he needs to fit in high security checks this may affect whether he can visit a site due to my debt plan being in place as he is financially relate to me. Also if he wants to take out credit in the future will he need to declare my debt plan and therefore will this affect his credit or ability to get further credit. His rating is good at present so he does not want to be affected in any way.What guarantees do you have with this.

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    • Lizzy

      June 17, 2011 at 6:56 am

      Hi Jacky, thank you for your comment. You or your husband do not need to worry as the debts are all in your name meaning that they affect you and only you. They would never affect you husband when he is applying for further credit or wouldn’t affect him needing to pass security checks. If doesn’t affect your credit rating, but it would definately not affect his.
      I hope this has helped you make your decision, if you have any other queries, please do not hesitate to email me lizzy.snow@payplan.com

      Reply Report comment

  • kenneth barnes

    December 28, 2011 at 5:43 pm

    i have debts of over 25000 on loans and cards .i also have a shared ownership home with approx 10000 equity working full time struggled for years and really depressed need financial help im 60 years old dont want to move and lose everything can afford aprox 200 a month would i qualify for a trust deed

    Reply Report comment

    • Gemma

      January 3, 2012 at 9:19 am

      Hi Kenneth, call into one of our advisors on 0800 716239 they will be able to go through all of your financial details and they can see what you can qualify for.

      Reply Report comment

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