Mortgage package – more people opt for Shared ownership mortgages
New plans unveiled by Gordon Brown today will help people struggling with their mortgage. They will be able to defer part of their mortgage interest payments for up to two years. If you lose you job or suffer a large cut in your income you will get more time so to resolve your debt and prevent repossession.
The prime minister told MPs the eight major mortgage lenders had signed up. The plan, which will start some time early in the new year. Let’s hope that it will cut the risk of more homes being repossessed.
Many first time buyers are now feeling that the opportunity to lend such huge amounts of money was a step that they should not have taken. Most people feel that the days of easy credit which offered those five or six times there current income was just to tempting not to take that leap to get them onto the first rung of the housing ladder. The package aims to save homes from repossession by offering three alternatives.
Shared ownership housing – allowing Registered Social Landlords (RSLs) to buy a share of the property, enabling the owner to pay off some of their mortgage. This option converts the property to shared ownership.Shared equity – Allows RSLs to provide an equity loan, enabling the householder’s mortgage payments to be reduced.
Rent back – Allows RSLs to clear the secured debt completely and the applicant pays rent to them at a level they can afford.The scheme had been due to be implemented early next year, but was brought forward as part of Chancellor Alistair Brown’s economic stimulus package, unveiled last week.
Housing Minister Margaret Beckett said: “We are determined to do everything possible to provide real help now to homeowners facing tough times, and that means doing all we can to ensure repossession is always a last resort.”Shared Ownership mortgages were not so popular but are now becoming the sensible option.If you want to know more about shared ownership motgage schemes, then contact Click n go Mortgages here.
