The Scottish Government’s Home Owners’ Support Fund consists of two schemes designed to help homeowners who are at risk of losing their homes because they are in mortgage arrears or cannot pay their secured loans:
- Mortgage to Shared Equity scheme (MSE): Under this scheme, the Scottish Government takes an equity share in your property, meaning they effectively buy a portion of your home. You remain in your property as an owner-occupier and continue to live in your home.
- Mortgage to Rent scheme: This scheme allows homeowners to sell their home to a participating social landlord and then continue to live in it as a tenant with a Scottish secure tenancy. This scheme is more suited to those who recognise they will not be able to sustain their home ownership in the longer term. Once the property is sold to the social landlord, the original homeowner becomes a tenant and will pay rent, but they no longer have the responsibilities of homeownership.
To be eligible for the scheme, there are certain criteria that homeowners need to meet, including:
- They must be in danger of having their home repossessed.
- They must have taken advice from a money adviser.
- Their property must meet certain criteria, such as being in good condition and not being of a certain high value.
- There may be other criteria based on personal circumstances, loan details, and more.
The idea behind the Fund is to provide an alternative to repossession and offer a way for homeowners to either stay in their homes as owners or remain in their homes as tenants, ensuring stability and reducing the negative effects of repossession on individuals and families.
For more, see the Fund pages on the mygov.scot website