Hard up residents in Harrogate, Leeds and York have been given a boost by the news that their local councils may offer loans to those facing repossessions . The new scheme, set to be unveiled at a City of York council meeting on Monday, is designed to limit the impact of the credit crunch on the city’s population, and is designed to reduce the levels of homelessness resulting from mortgage repossessions.
Homeowners could be eligible if they have become unable to meet their mortgage repayments as a result of increased interest rates or their fixed rate deal coming to an end. In such circumstances, the council is currently proposing three courses of action. The council would either pay off a household’s arrears; pay off the arrears and provide an equity loan; or pay off the arrears to enable a planned move. Each of the local authorities would coordinate their activities with the homeowner’s Registered Social Landlord (RSL) or Housing Association partners.
Although initially unveiled at the next council meeting, a more finite outcome is expected when representatives from each council meet in July.
York Residents May Receive Home Loans
Tue, 24 Jun 2008
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