Cash Help for Struggling Homeowners

Strathaven based MSP, Linda Fabiani, has welcomed a cash injection from the Scottish Government that will help struggling homeowners in East Kilbride. An extra £10 million worth of investment is being made in a Scottish Government scheme to help homeowners that are struggling with mortgage repayments.

The new money will mean the Home Owners’ Support Fund is being backed by £35 million over the next two years.
The fund will build on and improve the existing Mortgage to Rent scheme, and include a new Mortgage to Shared Equity scheme.

Those eligible for Mortgage to Shared Equity will retain ownership of their home and enter into a shared equity agreement with the Scottish Government, having had their secured debt reduced to a manageable level.

Speaking after the announcement was made Ms Fabiani said:
“The Scottish Government knows that many people are encountering problems due to the current economic climate and we want to do what we can to help households and businesses deal with the impact of the economic downturn.

“That is why we are acting to decisively bolster the Home Owners’ Support Fund and put an additional £5 million on top of the £5 million already announced in December into the fund, bringing a total of £35 million worth of investment in the fund over the course of this year and next.

“East Kilbride has a very high rate of owner occupiers and anyone that is running into difficulties should check out the details of both the Mortgage to Rent Scheme and new Mortgage to Shared Equity Scheme on the Scottish Government website at: http://www.scotland.gov.uk/Topics/Built-Environment/Housing/access/grants/4418.”

The improved Mortgage to Rent Scheme and new Mortgage to Shared Equity Scheme will start on March 16, 2009.