Only your money adviser can you tell whether you're able to apply for the Mortgage to Shared Equity and Mortgage to Rent Schemes.
Visit Scotland's Financial Health Service to search for approved money advisers in your area.
Below you'll find guidance on how a money adviser will decide whether you're able to apply.
Mortgage to Rent
You may be eligible for the Mortgage to Rent scheme if all of these apply to you:
- your bank or mortgage lender won't agree to lower mortgage payments
- you've paid less than your agreed mortgage amount for at least 3 months
- you're behind by at least the same amount as one monthly payment of your mortgage
- you can't get help through UK Government support schemes, or you might still lose your home even if you do get support
None of these apply if you have a trustee who forces the sale of your home.
A trustee has power over what happens to your home. Most people do not have trustees. If you have a trustee you'll need to get their written agreement to your Home Owners' Support Fund application.
End of Term Cases Pilot
This can help if you are at the end of your mortgage with your bank or lender, but still have money left on your home that you can't afford to pay.
To be eligible, you must meet everything for the Mortgage to Rent scheme above and be able to provide evidence that:
- your lender is looking to claim the rest of the money you owe on your home
- you're unable to pay the money you owe by taking another mortgage or loan, or cashing in an endowment or pension
- your mortgage lender wants to begin repossession proceedings in court
The End of Term Cases Pilot is running from 1 April 2014 to 31 March 2016 (inclusive). If the pilot cannot meet demand it will be suspended or closed.
Mortgage to Shared Equity
As well as the requirements for the Mortgage to Rent scheme, to be eligible for the Mortgage to Shared Equity scheme you must also:
- have paid for or own at least 20% of your home
- have a capital and interest mortgage – this is paying money back on the cost of your home and not just paying off interest on your mortgage
- own a property that's above the 'Tolerable Standard' – this is a basic standard that means your home is fit to live in
- not have a trustee that has power over what happens to your property
- not have an inhibition registered on your property – if you owe someone money they can stop you selling your home by registering an inhibition on your home
- normally not have a notice of potential liability on your property – this notice is often given when there has been unpaid work done on your home