Written - Mortgage Rescue
I am pleased to announce an expanded housing measure to address an unfortunate consequence of the current ‘credit crunch’.
The position that a growing number of home owners are finding themselves in is one where they unable to meet the payments on their mortgage and facing repossession proceedings, this is of great concern to me. There are serious consequences when a family loses their home and becomes homeless, children have to move schools, and the health and wellbeing of all family members can often deteriorate. I am therefore expanding the existing scheme in order to help significantly more families finding themselves in these circumstances. I will be working with local authorities and housing associations to allow families facing homelessness to access our mortgage rescue scheme, where a housing association can either purchase the home outright so that the home owners then become assured tenants, or can purchase an equity share where the mortgagees can afford a smaller loan.
This will of course be a demand led scheme, and although previously housing associations have had to find the funds from existing allocations, I am now ensuring that all registered housing associations will be able to participate by awarding additional funds to this programme.
This demonstrates the ability of the Welsh Assembly Government to be responsive to changes in the market. The homelessness prevention agenda is an important one and this intervention will alleviate pressure on local authorities and provide a safety net to those facing the unfortunate reality of eviction and becoming homeless.