Housing support comes online today
By politics.co.uk staff
New support for people struggling to make their mortgage payments will become available today.
The new Homeowners Mortgage Support (HMS) fund comes online today, with housing minister Margaret Beckett promising the money will come to the aid of families suffering a temporary loss of income.
A household which has its working hours reduced, for instance, or is forced to rely on one income rather than two, could benefit from the fund.
The money will have to be paid back eventually, however.
Lenders offering HMS will have the security of a government guarantee for the deferred payments, if the borrower defaults.
The Tories criticised the package, pointing out that 28,000 families have lost their home since it was announced.
The party also argued the scheme was useless for those who had lost all their income, because participants have to be able to pay 30 per cent of their mortgage interest payments.
Requirements for eligibility:
The borrower must:
Have bought their home before 1st December 2008
Be an owner-occupier – the scheme is not open to buy-to-let or investment properties.
Have an outstanding mortgage of less than £400,000 and having savings of less than £16,000.
Have regular household income and should be able to make a minimum contribution of 30 per cent of the total interest payment.
Have talked through other options with their lender and have been making regular payments for at least five months.
Have sought independent money advice.
