Following the Comprehensive Spending Review, the Homes and Communities Agency (HCA) has now announced its plans for the new Mortgage Rescue product which will commence in the next financial year. The £200,000,000 earmarked in the review is going to be available for Registered Providers to make bids on how many cases they are able to provide. The new scheme is set for a two year programme with the potential to be extended for a further year depending on the funding and the number of cases.
This is a change of focus from the current needs-based system to a provision-based system. This will require the Registered Providers and local authorities to work closely together to gauge the needs and requirements in their respective areas for the provision of Mortgage Rescue before the bid is submitted.
Ensuring the needs of the potential Mortgage Rescue candidates are met may become harder under the new arrangement. Although challenging, it is good to see further provision of the Mortgage Rescue Scheme which has been of great benefit to the people who have previously been rescued.