Interest-free loans to save homes from repossession

SUPPORT is being offered to home owners who are facing repossession in Selby District Council’s area.

Interest-free loans are one of a number of measures the council is introducing to help residents survive the recession.

A grant of 28,500 from the Department of Communities and Local Government is being used to help prevent homelessness.

The Local Authority Repossessions Prevention Fund will provide the loans to help households pay rent or mortgage arrears.

Chairman of the council’s Social Board, Gillian Ivey, said: “It’s really important that we’re able to give people support during these unprecedented economic times.

“In purely financial terms, it is more cost-effective for us to support people to remain in their own homes or help them to move elsewhere if this is not possible, compared to having to deal with an increased number of homeless cases.

“But there’s also the human cost of losing your home and the stress this causes, which is equally important. This is a difficult time for many people and their families. I would urge any residents who are facing repossession or starting to get into difficulties making mortgage or rent repayments to get in touch with us.

“This money is a valuable lifeline, particularly for families and vulnerable people. It will be used on the front line to keep families together in their own homes.”

To qualify for a grant, households should be either at risk of becoming homeless through repossession or eviction due to rent arrears or mortgage arrears, or homeless or threatened with homelessness within 28 days and in a priority need category – such as households with children, a where a member of the household is pregnant or vulnerable.

Anyone who applies for the loan will be referred for debt counselling with the Citizens’ Advice Bureau to help tackle the reasons the household fell into arrears.

Only one payment can be made per household up, to a maximum of 5,000 interest-free over a maximum of five years. The loan is repaid on a weekly or monthly basis.

Information is available from Selby District Council’s Housing Options team via the Access Selby office in Selby town centre, by telephoning 01757 705101 or online at www.selby.gov.uk.