Golden help for struggling households in York (York Liberal Democrats)

York Liberal Democrats <info@yorklibdems.org.uk>

Golden help for struggling households in York

November 12, 2008 12:00 AM

As a partner of the Golden Triangle Partnership, City of York Council will be launching a Mortgage Rescue Scheme next month, which will give equity loans to homeowners threatened with homelessness. This will allow several households in York to remain in their own homes, which may otherwise be repossessed.

The Golden Triangle is a partnership between housing and planning professionals within City of York Council, Leeds City Council and Harrogate Borough Council, as well as Home Housing Association and York Housing Association. Its aim has been to develop initiatives to increase the amount of affordable housing across the region.

The Golden Triangle is now splitting its emphasis between new affordable housing provision and mortgage rescue, to respond to the changes in the economy and housing market, with repossessions increasing as discounted rate mortgages come to an end, and the effects of the credit crunch are felt.

The Mortgage Rescue Scheme will involve housing associations taking equity stakes in homes which are at risk of repossession, thereby releasing funds for the owner to pay off arrears, manage debt or allow time for a planned sale. The equity stakes will be funded by the Golden Triangle Partnership, and will be returned for reuse within the Golden Triangle when the property is sold, or the mortgage paid off. The help is therefore effectively a loan which is guaranteed by the equity of the property, so taxpayers' (regional) money will not be at risk.

A maximum of £450, 000 will be set aside for the scheme, which should rescue up to 28 households from repossession, distributed evenly between Leeds, Harrogate and York. This means 9 or 10 homes in York will benefit from the scheme.

The Liberal Democrat Executive is very supportive of the Mortgage Rescue Scheme, and will give its approval next Tuesday, 18th November, for City of York Council to help launch the scheme, and for Leeds City Council to administer it.

Liberal Democrat Executive Member for Housing and Adult Social Services, Councillor Sue Galloway, is a member of the Golden Triangle Board, and has fully endorsed the scheme. She said: "The threat of repossession is now a real concern for many people in York as the credit crunch has meant increased debt and difficulty in meeting mortgage payments. It is vital that we do as much as possible to prevent people losing their own homes.

"I would encourage anyone, at the first indication that their home may be repossessed, to access the services provided by York Council and other agencies such as the Citizens Advice Bureau."

"Last year 510 homes were repossessed in York, which had a devastating impact on those concerned, and the number of mortgage possession claims this year shows that the trend is unsurprisingly increasing. It would be a great help if more residents in York could be helped by Government funding. The Government is not investing in the Golden Triangle Partnership, and although it is a fantastic scheme its capacity is reasonably modest because of limited regional funding."