For both home owners and tenants, Craven Citizens Advice Bureau, supported by Craven District Council and Housing Options, offers free, independent debt advice. Outreach surgeries take place in Bentham, Ingleton and South Craven.
Currently delivered by KeyHouse (Keighley) the Court Desk Service provides assistance for home owners and tenants at Skipton County Court. A duty Officer will assist clients and represent them in Court. The Pre-action Protocol for Possession Claims based on Rent Arrears, is used by Judges to ensure that repossession is only granted to those landlords who have done all that is reasonably expected of them to prevent eviction and repossession is an act of last resort.
Through a government grant, the Council has established an Eviction and Reposession Loan Scheme providing small loans (interest free up to £5,000) to households in mortgage or rent arrears, enabling them to stay in their homes. The first EARLs loan was made in November 2009, resulting in a family being asssited to stay in their own home.
Further assistance for home owners
The majority of people who face temporary difficulties successfully work with their lender to stay in their homes, and get their mortgage back on track over time. Where borrowers contact their lender early, maintain good communication and are committed to paying what they can and resolving their arrears, lenders work hard to help wherever the household’s future prospects look feasible.
Mortgage Lender Hardship Tools are the repayment solutions that are available for the mortgage lender and borrower to explore. Before taking action to repossess your home your lender may be able to lengthen the mortgage term, add arrears to the outstanding debt, switch to an interest only basis, temporarily reduce payments or change the method and date of payment. On 1st October 2009, new protection was brought in for people struggling with mortgage arrears, by further tightening the rules on lenders taking court action for repossession. New court rules ensure that mortgage lenders inform councils when repossession action starts in their local area, allowing councils to step in to offer advice and help for those most in need.
Income Support for Mortgage Interest (ISMI)
After 13 weeks, homeowners who lose their jobs are able to receive financial help with the interest payments on their mortgage.
Click here for more information.
Homeowners Mortgage Support (HMS) Scheme
This scheme was launched on 21 April 2009 for people who have recently experienced a sharp drop in income: perhaps because they have had overtime cut or hours reduced. It is a last resort, after people have explored all other options with their lender. The scheme enables you to postpone part of your interest payment for up to two years. The money postponed is added on to the remaining balance of your mortgage, to be paid back when your situation changes.
For more information about HMS, including answers to frequently asked questions, a list of lenders who are taking part and a list of HMS money advisors, go to http://www.direct.gov.uk/HMS.
Craven's Mortgage Rescue Scheme
For qualifying households at risk of homelessness, with total income of less than £60,000 and where the value of the property is less than £130,000, this scheme allows housing associations either to take a share in the equity or to buy the property outright and rent it back to the former owner. Households qualifying include those with dependent children, the elderly, or with a disbaled person.
From May 2009, the Mortgage Rescue Scheme was widened to include households in negative equity. Applications can now be considered from home owners in cases where the level of debt (mortage and secured loans) exceeds the value of the property by up to 20%; that is, home owners with a loan to value of less than 120%.
Click here for more information.
Breathing Space, Loans for Mortgage Rescue
The regional scheme has a budget of £2m and is administered by Wakefield City Council on a first come, first served basis. It offers loans of between £2,000 and £15,000 and can cover arrears and up to 12 months of mortgage installments. The applicant must live in the property, must have sufficient equity, ie. a laoan to value ratio of less than 85%, and insufficient resources to pay the arrears. Applicants are not restricted to priority homeless households.
North Yorkshire Action Plan developed in response to the Recession
In response to some of the new challenges of the recession, the Government announced in May 2009 that an additional £3.7m was to be paid to Local Authorities to help support the development of actions to tackle the threat of repossessions. The sub-region has been awarded £60,000 in additional grant, paid to Scarborough Borough Council as the banker.
The County Homelessness Group have developed an Action Plan to improve communication, understanding and co-ordination of housing services and key partners to improve service delivery in response to the recession. Funding will be used to deliver a sub-regional marketing and communications strategy; local marketing/communications interventions (E.g. Press Campaign commencing Nov 2009) such as road shows and employment of a sub-regional co-ordinator post.
In January 2010 a "Mortgage Problems?" leaflet was produced which outlines all the schemes available to help people who are at risk of losing their home.
Sale and Rent Back
This is an option that is available to homeowners and there are a number of organisations offering to purchase your home and rent it back to you. However, we would strongly recommend that you take professional advice before taking up this option as recent research undertaken by the Office of Fair Trading has evidenced that:
- some consumers enter into sale and rent back transactions when this is not the best option for them
- some sale and rent back firms may mislead customers as to the value of their property or the security they have as tenants. This includes telling people they will be able to stay in their home for years, when in reality the tenancy may only be guaranteed for six to 12 months
- some firms impose substantial rent increases or even evict tenants after a short tenancy period. It is also possible that tenants may lose their homes if the landlord defaults on the mortgage, and
- some consumers are evicted because they cannot afford the agreed rent, which suggests staying in their property was not sustainable in the first place.
The Department of Works and Pensions (DWP) has produced a leaflet Advice for Homeowners: Sale and Rent Back which contains guidance for those thinking about entering into a sale and rent back arrangement and explains the impact on a person's eligibility to Housing Benefit.
Further assistance for tenants
Tenancy Support
Foundation and Housing Options provide tenancy support for households at risk of homelessness to help them sustain their tenancies. This scheme has been in operation for over 2 years now and is funding by NYCC Supporting People.
Craven's Homelessness Prevention Fund
This discretionary fund is administered by Housing Options. Partner organisations can apply on behalf of people who are at risk of homelessness for funding which will either prevent homelessness or reduce the cost to the Council of providing temporary accommodation.
Discretionary Housing Payments Panel
A DHP Panel whch meets fortnightly to consider applications for additional Housing Benefit for qualifying households at risk of homelessness.
Rent in Advance and Bond Guarantee Scheme
This scheme delivered by Foundation and funded by Craven District Council and assists people to access the private rented housing by providing Rent In Advance and Bonds for qualifying households.