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Mortgage Rescue Scheme
Last year Trafford Council was designated as one of four authorities in Greater Manchester to try out the Government's mortgage rescue scheme (MRS).
The MRS scheme is designed to help homeowners, at risk of homelessness through repossession, to stay in their homes. The £200 million scheme is part of a wider package of measures.
The scheme allows a number of homeowners who are in negative equity to apply.
Depending on individual circumstances, there are two options available to those who qualify for MRS:
Shared equity option
This means people with at least 25% equity in their home can, through a homebuy agent - who buys the equity share in the property - pay rent to a social landlord as part of an equity loan repayment, at an agreed affordable rate. Homeowners do have the option to buy back the equity and become full owners of the property again.
Government mortgage to rent
The homeowner becomes a tenant of a registered social landlord, who buys the property and pays off the lender. This means the tenants will pay a lower than market rate rent to the landlord - there will still be the option to buy back the property.
For more information contact our Housing Options team on 0161 968 0343.
Shelter have been commissioned to work in Trafford to help households in relation to MRS and the housing options team can refer homeowners. Shelter also provide an appointment/drop in centre at Sale Waterside every Tues between 10am and 3pm.
This page was last reviewed on 3 February 2010
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