A scheme to support our mortgages is launched

A scheme to help householders struggling with their mortgages has been launched.

This scheme will allow homeowners to enter into a shared equity arrangement with housing associations; also the ‘mortgage to rent’ scheme is to be extended.

£35m is to be invested into this scheme over the next two years by the housing minister Alex Neil.

This new scheme allows the Scottish Government to take a financial stake in a house in which the mortgage payers could be made homeless due to mortgage arrears.

This will be made available to mortgage payers by an Independent financial advisor assessing each case and recommending to ministers what stake should be taken, although homeowners must own at least a 25 equity in their properties. Anyone who applies must also get the agreement of their lender to agree to the move and this must be at least 3 months into arrears.

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March 16^th 2009