What is Homeowners Mortgage Support?

 

The Homeowners Mortgage Support scheme was set up by the UK Government to help homeowners who were struggling with their mortgage. The scheme was introduced in 2009 by the then Government in response to the growing numbers of homeowners who were experiencing difficulties as a result of the economic downturn.
 
The aim of the scheme was to provide temporary financial relief, allowing homeowners some respite until their financial situations were stabilised.
 
Homeowners Mortgage Support was available both for shared ownership and shared equity properties. The scheme essentially allowed homeowners to delay paying a part of their mortgage for up to two years.
 
The part of the mortgage repayment deferred was not written off, and instead was added to the remaining payments. Homeowners could not therefore avoid contributing at all, and any relief was then repaid later.
 
There were a number of conditions to be satisfied in order to qualify for the scheme. Homeowner Mortgage Support was only available to those who have lost a significant amount of income on a short term basis, for example due to a redundancy, reduced hours or overtime or those with new caring responsibilities.
 
You must have switched to an interest only mortgage, and you must still contribute at least 30% of the interest due each month. Other conditions included a cap on the total value of the mortgage, and a limit on the value of savings a homeowner may have. 
 
The Homeowner Mortgage Support scheme was formally closed on April 21st 2011. Any homeowners already in the scheme can still benefit from it, but no new applications are being processed.
 
The Government hopes that relief available under their Mortgage Relief Scheme will help take up the slack left by the closure of this scheme. If you are in the scheme you should contact your solicitor for the latest legal advice and updates on the scheme‚Äôs operation. 
 
If you would like to obtain legal advice on Homeowners Mortgage Support, Caven can put you in touch with a local specialist solicitor free of charge. So, if you have any questions or would like our help in finding local solicitors  please call us on 08001 221 2299 or complete the web-form above.
 
 
 
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