People in Neath Port Talbot who are threatened with homelessness because of mortgage repossession are about to be offered a lifeline.

The Council is working in partnership with housing associations and advice agencies to deliver the Welsh Assembly Government's Mortgage Rescue Scheme. An additional £5 million has been made available in Wales this financial year to support purchases through the new scheme.

Support may be provided in two ways. Under the Homebuy route, the housing association would purchase an equity share in the property, to enable the outgoings of the householder to be reduced to a manageable level. Alternatively, where continued home ownership is not a financially viable option for the family, the housing association could purchase the property outright and the former owner would become an assured tenant of the housing association.

-- Advertisement --

The scheme is not intended to assist all homeowners who are in financial difficulties, but will be available to help in the most urgent hardship cases where repossession will lead to homelessness and will cause additional pressures on social housing waiting lists in an area. Mortgage rescue will only be considered if the lender has commenced legal action to repossess the property or that the lender has agreed to postpone legal action to allow a Mortgage Rescue purchase by a housing association to proceed.

Priority will be given to families, but the scheme might also be used to help owners who live in specially adapted housing, because of a disability.

Each case will be assessed on its own merits and will be the subject of separate grant application to Welsh Assembly Government.

(CD/JM)