Ethos Public Relations Manchester

ALMO takes on Mortgage Rescue

by Ethos public relations

Rochdale Boroughwide Housing (RBH) has become the first ALMO in the country to acquire properties as part of the government’s Mortgage Rescue Scheme.

The initiative is designed to help vulnerable households who may be at risk of having their home repossessed. It allows householders to remain in their home as tenants paying rent rather than as homeowners - and eases both the financial and physical disruption that can occur when a family is forced to move because of repossession.

Brighter Horizons the charitable subsidiary of RBH has recently acquired the first two of a planned ten properties in the borough and Gareth Swarbrick Chief Executive of RBH said:

“Rochdale has one of the highest numbers of repossessions in the North West and clearly there is a great demand for this type of assistance. Council support has been invaluable in enabling the borrowing to help us support this scheme.”

The latest from the Financial Services Authority suggest there are around 350,000 people in mortgage arrears (Jan 2011) and even a small rise in interest rates could place many families in danger of losing their homes. Preventative work like this in Rochdale offers a viable alternative to helping families remain in their own homes.

“The families we have helped to date have had to demonstrate their financial ability to afford the rent for the rescued property,” said Gareth Swarbrick. “They also have to meet a strict criteria around their eligibility to apply for the scheme which includes factors around the size of their household and their overall health and well being.”

The Mortgage Rescue Scheme in Greater Manchester is administered by Great Places Housing Group. Brighter Horizons now owns the properties and RBH manages them. It is hoped that in Rochdale, RBH can help a further eight families in the near future.

To read other news from Rochdale Boroughwide Housing click here.

Posted at 21^st March 2011

ALMO takes on Mortgage Rescue

by Ethos public relations

Rochdale Boroughwide Housing (RBH) is set to become the first ALMO in the country to participate in the government's Mortgage Rescue Scheme. Brighter Horizons the charitable subsidiary of Rochdale Boroughwide Housing has successfully applied to take part in the scheme and a seal of approval from Rochdale Council means it can help up to ten households over the next year.

Gareth Swarbrick Chief Executive of RBH said: "Rochdale has one of the highest numbers of repossessions in the North West and clearly there is a great demand for this type of assistance. Thirty five percent of the scheme costs will be coming from prudential borrowing via the Council and without the support of the Council this scheme would not have been able to go ahead."

The latest figures from the Financial Services Authority show that the number of mortgage holders behind with their mortgage payments increased by 16% in the third quarter of 2009. An average of 395,000 mortgage holders were in arrears between July and September.

In October, the Homes & Communities Agency (HCA) urged its 76 investment partners to increase the Mortgage Rescue Scheme?s capacity and as a result more landlords have applied and been accepted ? Brighter Horizons being one.

Any family eligible will have to demonstrate their financial ability to afford the rent for the rescued property. RBH will be targeting those homeowners who live on their estates and have been accepted through the Mortgage Rescue Scheme.

The Mortgage Rescue Scheme in Greater Manchester is administered by Great Places Housing Group. Brighter Horizons will step in to own the properties and RBH will manage them.

Deborah McLaughlin, Regional Director North West of the HCA, said: "It's great news that Rochdale Boroughwide Housing is becoming so actively involved in the Mortgage Rescue Scheme. The economic downturn has left many homeowners in trouble, and repossession is a last-ditch solution that doesn't benefit homeowners or lenders. Through preventative work such as this in Rochdale, Mortgage Rescue is now starting to offer a valuable alternative and provide help in supporting families stay in their homes."

Posted at 23^rd February 2010