A mortgage rescue scheme to help vulnerable families at risk of repossession to stay in their homes is being rolled out across England.

The £200 million scheme is one of a range of measures the Government is putting in place to help ensure repossession is always a last resort.

The scheme is targeted at the most vulnerable households, those on incomes of less than £60,000 a year who would be entitled to be re-housed under homelessness legislation. These would be people who are elderly, disabled or those with children.

Households will be able to apply to their local authority for two options to help them remain in their homes, depending on their circumstances. They will either be able to sell a share of their home to a housing association, enabling their monthly mortgage payments to be significantly reduced, or they can sell the entire home to a housing association and remain in the property as tenants paying a subsidised rent.

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The scheme, which is expected to help up to 6,000 households avoid repossession over the next two years, is being expanded to all local authority areas in England from today, following its early introduction by 80 councils in December.

Housing Minister Margaret Beckett said: "We know that some families are worried about their mortgage payments right now, and we are determined to do everything possible to ensure repossession is always a last resort. For the most vulnerable households, the mortgage rescue scheme will be available across England to help ensure they can remain in their homes.

"This is part of a range of measures the Government is putting in place to help households at risk of repossession in the current climate. As well as expanding free debt and legal advice, we have increased the support available for people who lose their jobs, and are introducing the option for homeowners to defer part of the loan to give them the time they need to get back on their feet."

(CD/JM)