A MORTGAGE lifeline could be handed to hundreds of Doncaster residents who face losing their homes because of the the credit crunch.
The news comes days after it was revealed repossession orders issued to the courts in 2008 had risen by 23 per cent compared to the same period in 2007. There were 882 orders in all.
Doncaster Council is signing up for a scheme which will allow it
to sell a stake in people's homes to stop them being thrown out, enabling monthly mortgage payments to be reduced.
It would also give owners the option to sell their house to a housing association and remain in the property as a tenant paying subsidised rent.
The scheme is expected to be up and running in the New Year.
Peter Dale, director of development at Doncaster Council, said: "We are working hard to ensure repossession of homes is the very last resort for people in the borough. This year, we have been working on five new affordable housing programmes, which includes building new properties to address the underlying housing demand, but also initiatives to buy back empty private and ex-council properties through the Right to Buy scheme.
"By concentrating on a range of options, we are confident that this approach will make a meaningful contribution to increasing the supply of affordable housing stock in Doncaster's neighbourhoods."
The mortgage rescue scheme will form part of the authority's affordable housing programme.
It will also cover vulnerable families at risk of repossession because of additional loans secured on their homes.
Meanwhile, the council's cabinet has approved a draft strategy document which calls for work to be carried out to improve the borough's privately rented housing. It includes filling the borough's 4,100 empty houses and forcing the sale of some empty homes.
The council is also considering bringing in a licensing scheme for houses in multiple occupation, with owners potentially prosecuted if they breach their license conditions. The scheme is due to be piloted on Edlington's Royal estate.
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