Two Midlands firms have joined forces to complete the first deal under a £200m government scheme – saving a vulnerable single parent from repossession.
Orbit First Step, part of the Orbit Group based in Coventry, worked with Warwickshire solicitors Wright Hassall to buy a house in Norfolk, from a single father who could no longer pay his mortgage.
Under the mortgage rescue scheme, housing associations receive part funding to help purchase the house – and pay off the mortgage – enabling the family to remain in the family home as tenants.
It is hoped that similar buyouts will avoid 6,000 repossessions across England.
Housing Minister Margaret Beckett said: “We are determined to do all we can to ensure repossession is a last resort and it is heartening to know that this family can stay in their home thanks to the efforts of the Orbit First Step, the local council and all who have worked tirelessly to make this happen.
“The Mortgage Rescue scheme is just one of a range of measures we have put in place to help those at risk of repossession, though for anyone who is concerned about their mortgage they should speak to their lender or seek financial advice as soon as possible.”
Jenny Birch, of the Orbit Group, said: “The purpose of this scheme is to prevent the most vulnerable families from losing everything they have because of debt.
“We are delighted to complete the first deal because it has stopped a family from enduring the trauma of repossession. They can now regain control of their finances and rebuild for the future.
“We are obviously thrilled to be involved in the first completion and we hope there are many other transactions that follow suit and prevent people from losing their homes.”
In light of house price falls over the past year, the Government is extending its support for vulnerable homeowners in financial difficulty through widening the eligibility criteria for the Mortgage Rescue Scheme so that households in negative equity are not excluded.
Ruth Harries, of Wright Hassall’s residential development unit, said: “In this type of situation, communication and speed are both essential - and we’ve had those with Orbit.
“The result is literally life-changing for the family and we’re proud to have played a part in this first deal.”
