To pay off you mortgage arrears you may be interested Mortgage Rescue Schemes.

These are schemes which offer to buy your property and rent it back to you. This may be a good alternative allowing you to pay off your debt and live in your property too.

You need to b every careful, when signing to such schemes, as you may end up paying very high rent and risk being evicted if you do not pay.

A mortgage rescue scheme may be the right option for you, as long as you check the terms and conditions of the scheme very carefully. Make sure you have a clear understanding of the exact terms and conditions that you are signing up to

There are different types of mortgage rescue schemes. A scheme could be run by:

• A Mortgage Company
• A Private Company
• Some Local authority
• An individual

Things to consider when signing on such conditions:-

• Whether the scheme offers benefit or debt advice and if so, is it independent or monitored in any way?
• Who pays for the costs of selling the property?
• What type of tenancy is being offered? If it's a tenancy which only lasts a certain period of time to start with, can it be renewed after that and when can the landlord take court action to evict you?
• How are the rents set, including how often will the rent go up and by how much? THIS IS VERY IMPORTANT
• What are the responsibilities and obligations of both the landlord and tenant? Things such as Maintenance of property etc.
• Can shares in the property be bought back if your financial position improves?
• Are there any insurance or bond arrangements if the scheme ever runs into financial difficulties?

Private mortgage rescue schemes

Things that you need to know about private mortgage rescue schemes include:

• They often buy homes below the market rate
• You will probably have an initial tenancy which runs for six or twelve months and, during that time, the landlord might charge you what seems to be a reasonable rent. However, after that, if your tenancy is renewed, you may be charged a much higher rent or one which is not that different from what you would have paid if you were still paying off the mortgage and the arrears
• The type of tenancy offered may give you little protection from eviction which means that the landlord might be able to evict you quite easily.

Schemes run by social landlords

Did you know that some local authorities and housing associations also run mortgage rescue schemes?  Although there aren't many of them around, they often have strict rules about who can apply, so you may not qualify to begin with.

These schemes will allow you to remain in your home either as:

• A tenant. Your home would be sold, usually to a registered social landlord and then rented back to you at a rate which is less than your mortgage repayments. The scheme may give you the right to buy back your property back if your financial situation improves. You should check whether this will be possible or not.
• A shared owner. Your home would be sold, usually to a registered social landlord and you would pay part rent and part mortgage. You may be able to increase your share of ownership when you can afford to. You should check whether this will be possible

When your property is sold to a social landlord, the money is used to repay your existing mortgage and the arrears. If there is not enough money to cover all of the arrears, you will have to make other arrangements to pay off the difference.

To find out more about mortgage rescue schemes run by local authorities and housing associations,  best place will be to ask you local authority.

Government-backed mortgage rescue schemes

In England, the Government has launched a mortgage rescue scheme to help vulnerable homeowners to stay in their home.

You may qualify for the scheme if you have dependent children or if anyone in your household is pregnant, disabled or elderly.

 If your household earns more than £60,000 a year, you can’t use this scheme and there are limits on the value of your property that may stop you from using the scheme.

To get help, you will need to:

• Get a money advice agency to carry out an up-to-date assessment of your finances which will show whether this scheme is an option for you
• Know that your lender has considered other options and will support your application
• Be sure that there are currently no orders or charges on your property that would stop it being sold
• Provide an up-to-date valuation of your property to show its possible selling price.