The Mortgage to Rent scheme is run by the Scottish Government as part of the Home Owner Support Fund. The scheme aims to help people, whose homes are at risk of being repossessed, to stay in their homes.
If you apply successfully for the mortgage to rent scheme, your home will be bought by the Association, but you will continue to live there as a tenant. ng homes, as your new landlord, will receive funding from the Scottish Government to carry out any necessary repairs so they can charge you a reasonable rent.
Before you apply, you must get advice about your financial situation from the Citizens Advice Bureau, a debt advice service or a solicitor, or your local council or other advice agency.
You can apply to the Mortgage to Rent scheme if the following criteria apply:
- You are at least 3 months in arrears of loans secured on your property and have gradually built up arrears of totalling one month
- A trustee appointed to your estate is going to force the sale of your house
- You failed to reach agreement with your mortgage lender over how to manage your arrears
- You have received independent financial advice, from either Citizens Advice Bureau or Money Advice centre
- All joint owners of the property agree to apply to the scheme and have signed the application form
- The property is your only or main home, or the only or main home of someone else in your household
- You or someone else in your household has lived there for at least a year
- Neither you nor your partner (including a same sex partner) has capital of more than £2,000 if you're under 60, and £4,000 if you're over 60. Capital includes savings, shares, premium bonds, redundancy payments and other investments but doesn't include personal pension schemes or any savings plans that are linked to your mortgage, such as an ISA or endowment policy
- The value of your property is lower than the average property value in your area. Your money adviser will inform you of this value. If there are more than five people living in your house or the house is more expensive due to the needs of a disabled person, this condition will be ignored
- Your property needs no more than £6,000 worth of repairs done to it. If you can fund some of the repair work yourself, you will still be eligible to apply
- Your home is suitable for the needs of your household, for example, it isn't overcrowded and it meets the needs of anyone in your household who's disabled
- You won't be eligible for the mortgage to rent scheme if you own your home with someone else and they are forcing the sale of the property (for example, due to relationship breakdown)