Keeping your home

You may be concerned about how the global economic downturn might affect your housing. If your job has been affected, you may be worried about keeping up with your mortgage repayments.

In the North West, many councils have joined forces with local Citizens Advice Bureau, Housing Associations and with organisations such as Shelter to make sure you have access to free independent advice on these matters.

In this section you will find information about the help that is currently available.

Avoiding repossession

We want to help people in financial difficulties stay in their homes. If you are worried about paying your mortgage, you should talk to your lender first. They may be able to help you find alternatives, such as cutting your monthly repayments. New rules introduced in November 2008 mean that repossession should always be a last resort, and lenders have agreed to look at all possible options to prevent it.

Similarly, if you are a housing association or council tenant and are concerned that you may not be able to pay your rent, the first step must be to make contact with your local office directly. Do this as soon as possible to avoid any arrears building up and to make sure they are aware of your new circumstances. Information on how to contact your local council can be found in the Key Contacts section.

If, having contacted your lender or landlord, you are still concerned that you are at risk of repossession you should talk to independent advisors from your local council, Citizens Advice Bureau or Shelter. They may be able to help you negotiate a settlement that avoids the situation getting worse.

Even if legal action has begun, it may not be too late and it is important that you take advice - in about 85 per cent of cases immediate repossession is prevented when people attend court. As well as support from independent organisations, you may be able to get free legal advice from your county court - see the Key Contacts section to find your nearest one.

Depending on your circumstances you may be eligible for one of two schemes:

1. Support for Mortgage Interest may help you with your mortgage interest payments to enable you to stay in your home if you've been on certain benefits for 13 weeks or more, or if you are on the lowest income and have limited savings. This help has been extended to increase the maximum amount of capital borrowed on which we will meet the interest payments. Visit the Directgov web site for more information.

2. The Mortgage Rescue Scheme is designed to help you stop your home being repossessed if this would mean that you became homeless and entitled to support from your local council. If you are likely to be able to get your situation back on track, then a housing association may buy a share in your home. This would cut your monthly repayments. If you are in more serious difficulties, a housing association may buy your home and you will then be able to stay there as a tenant.

Contact your local council's housing department or local Citizens Advice Bureau for more details.

Help with housing costs or finding a new home

If you need financial help to pay all or part of your rent, you may get Housing Benefit, provided that your income and capital (savings and investments) are below a certain level.

If you rent from a private landlord there's a new way of working out Housing Benefit - known as Local Housing Allowance - read more about this on the Direct Gov web site.

Your council can also help with advice on finding rented accommodation or social housing. They can tell you what help you may be able to receive, such as finding a deposit or temporary housing and other help if you are at risk of becoming homeless.

Contact your local council (see the Key Contacts section for help with this) and they will be able to put you in touch with their revenues and benefits services.