mortgage to shared equity scheme

[janis6670]

does anyone have any information on this scottish government scheme

[IdaInFife]

http://www.nationaldebtline.co.uk/scotland/factsheet.php?page=26_help_with_your_mortgage

 

not sure if you mean what's in the link if not then give them a call as they are really helpful

[Crocdoc]

The Mortgage to Shared Equity (MTSE) scheme allows the owners of a property to reduce the level of debt secured over their property whilst retaining ownership. The Scottish Government buys a stake in the property which then means the owners can reduce their mortgage. The owner does not have to make any payments to the Scottish Government in relation to the stake that it has bought. The owner retains full responsibility for maintaining and insuring her/his home.

9

Owners who are accepted onto the MTSE scheme will need to pay the costs of the relevant conveyancing work. They will need to see a solicitor to take legal advice before committing to the scheme.

10

The owner will be able to buy back the Scottish Government’s share in the property when her/his circumstances improve.

11

The MTSE scheme is only available to certain people in certain circumstances.

 

12

If a client is not accepted onto the scheme, the Scottish Government may offer to assist her/him under the MTR scheme. If the client is not offered any assistance through the MTSE or the MTR schemes or decides not to accept any offer that is made then s/he may wish to investigate whether there are any mortgage rescue schemes operating in her/his area.

Who can apply

13

 

A client who wants to apply for either the MTR or the MTSE scheme must have:-

• been unable to agree with her/his lender on how to manage the arrears (or have granted a trust deed or been sequestrated and the trustee is intending to force the sale of the property); and
   
   
  
• received independent advice about her/his financial situation. This could be from a Citizens Advice Bureaux, Money Advice outlet or local authority money advice centre (see paragraph below).
  

14

 

 

A client has to demonstrate that s/he has had thorough debt advice before s/he can apply to the MTR or the MTSE schemes. If the client makes an application and has not received debt advice, the application will not be accepted and will be returned to the client. The adviser will need to do a complete check on the amount of any capital or other assets counted as capital, income and all debts (particularly those secured against the property, in addition to the mortgage), as part of the debt assessment. This will have to be done both for:-

• all applicants wanting to become tenants; and
  
• any current owners who are not applying to become tenants but intend to continue living in the property.
  

A client who applies to the MTR or MTSE schemes, must include proof that s/he has been unable to agree with her/his lender and that s/he has received independent advice about her financial situation. For example, a client may have a letter from her/his lender which shows that attempts to agree how to deal with the arrears have failed. In addition, a client will need a letter from their independent adviser confirming that s/he has received advice about her/his financial situation.

16

 

There are a range of criteria that must be met in order for someone to be eligible to apply to MTR and MTSE:-

• the value of the property must be no more than the local maximum property price. These prices are set by the Scottish Government and can be found in the administrative guide to the MTR and MTSE schemes. In some cases, the maximum price may be disregarded if the client has particular housing needs as a result of a disability
  
• the borrower has been unable to make full payments on her/his mortgage for at least 3 months and has cumulative arrears of at least one month (if the client has granted a trust deed, this condition about arrears does not apply). A letter confirming this must be included with the application form
  
• the client is not eligible for help through other UK Government support schemes such as Income Support for Mortgage interest. A letter confirming this must be included with the application form
   
  the client does not normally own a property elsewhere. In exceptional circumstances, this condition may be waived
  
• at least one of the owners must intend to remain in the property and at least one of the owners must have lived in the property for at least 12 months
  
• the client does not have capital of more than £2,000 if s/he is under 60 years old, or more than £4,000 if s/he is 60 years old or older.
  

16a

 

In exceptional circumstances, a client who has received assistance from one of the UK schemes but is still in danger of her/his home being repossessed can apply to the Home Owners Support Fund (the MTR and the MTSE).

17

In addition to the eligibility The Mortgage to Shared Equity (MTSE) scheme allows the owners of a property to reduce the level of debt secured over their property whilst retaining ownership. The Scottish Government buys a stake in the property which then means the owners can reduce their mortgage. The owner does not have to make any payments to the Scottish Government in relation to the stake that it has bought. The owner retains full responsibility for maintaining and insuring her/his home.

9

Owners who are accepted onto the MTSE scheme will need to pay the costs of the relevant conveyancing work. They will need to see a solicitor to take legal advice before committing to the scheme.

10

The owner will be able to buy back the Scottish Government’s share in the property when her/his circumstances improve.

11

The MTSE scheme is only available to certain people in certain circumstances.

12

If a client is not accepted onto the scheme, the Scottish Government may offer to assist her/him under the MTR scheme. If the client is not offered any assistance through the MTSE or the MTR schemes or decides not to accept any offer that is made then s/he may wish to investigate whether there are any mortgage rescue schemes operating in her/his area.

 

Who can apply

 

13

 

A client who wants to apply for either the MTR or the MTSE scheme must have:-

• been unable to agree with her/his lender on how to manage the arrears (or have granted a trust deed or been sequestrated and the trustee is intending to force the sale of the property); and
   
  Recieved independent advice about her/his financial situation. This could be from a Citizens Advice Bureaux, Money Advice outlet or local authority money advice centre (see paragraph below).
  

14

 

 

A client has to demonstrate that s/he has had thorough debt advice before s/he can apply to the MTR or the MTSE schemes. If the client makes an application and has not received debt advice, the application will not be accepted and will be returned to the client. The adviser will need to do a complete check on the amount of any capital or other assets counted as capital, income and all debts (particularly those secured against the property, in addition to the mortgage), as part of the debt assessment. This will have to be done both for:-

• all applicants wanting to become tenants; and
  
• any current owners who are not applying to become tenants but intend to continue living in the property.
  

15

A client who applies to the MTR or MTSE schemes, must include proof that s/he has been unable to agree with her/his lender and that s/he has received independent advice about her financial situation. For example, a client may have a letter from her/his lender which shows that attempts to agree how to deal with the arrears have failed. In addition, a client will need a letter from their independent adviser confirming that s/he has received advice about her/his financial situation.

16

 

There are a range of criteria that must be met in order for someone to be eligible to apply to MTR and MTSE:-

• the value of the property must be no more than the local maximum property price. These prices are set by the Scottish Government and can be found in the administrative guide to the MTR and MTSE schemes. In some cases, the maximum price may be disregarded if the client has particular housing needs as a result of a disability
  
• the borrower has been unable to make full payments on her/his mortgage for at least 3 months and has cumulative arrears of at least one month (if the client has granted a trust deed, this condition about arrears does not apply). A letter confirming this must be included with the application form
  
• the client is not eligible for help through other UK Government support schemes such as Income Support for Mortgage interest. A letter confirming this must be included with the application form
   
  the client does not normally own a property elsewhere. In exceptional circumstances, this condition may be waived
  
• at least one of the owners must intend to remain in the property and at least one of the owners must have lived in the property for at least 12 months
  
• the client does not have capital of more than £2,000 if s/he is under 60 years old, or more than £4,000 if s/he is 60 years old or older.
  

16a

 

In exceptional circumstances, a client who has received assistance from one of the UK schemes but is still in danger of her/his home being repossessed can apply to the Home Owners Support Fund (the MTR and the MTSE).

17

In addition to the eligibility criteria above,in order to be considered for the MTR scheme, the owner must hold less than 25% equity in her/his home. There are two exceptions to this. The owner does not need to have less than 25% equity in her/his home if s/he has granted a trust deed and a trustee is managing her/his estate or if her/his mortgage is not a capital and interest repayment mortgage.

criteria above,in order to be considered for the MTR scheme, the owner must hold less than 25% equity in her/his home. There are two exceptions to this. The owner does not need to have less than 25% equity in her/his home if s/he has granted a trust deed and a trustee is managing her/his estate or if her/his mortgage is not a capital and interest repayment mortgage.

 

I hope this helps

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