FOR homeowners struggling to keep up with their mortgage payments during the recession, three new Government schemes have been launched to help them cope with their financial problems. The criteria used to assess those who are eligible for help is quite complicated, so an assessment needs to be made for each applicant.

However, a brief description of each scheme is as follows:

Mortgage Support Scheme. Mortgage lenders have agreed to postpone part of their interest payments for up to two years in the event of an 'income shock'. This could be due to a temporary job loss, reduction in hours or a cut in overtime. All money will have to be repaid at some time during the course of the mortgage and there are risks as well as benefits.

Mortgage Rescue Scheme. If legal action to repossess a house has already begun, then a share of the equity could be bought by a registered social landlord. Alternatively, a registered social landlord could buy the home at market value and rent it back at a below-market rate. However, those with a household income more than £60,000, or whose home is worth more than £155,000, will not be eligible for this scheme. Nor will those with a mortgage that is more than 120 per cent of the current value of the home.

Homeowners Prevention Fund. To try and prevent repossessions, the council has been given funds by the Government to make interest-free loans at 0 per cent interest. Usually, these loan will be between £1,000 and £3,000 but could be as much as £5,000 in some cases. The loans could be used to top-up mortgage payments, pay off arrears, or fund alternative accommodation in the private sector if the home can't be saved.

In all cases where repossession is a possibility, early intervention is the key. Homeowners are advised not to ignore any warning letters they receive as many lenders will work with their customers to find alternatives to repossession. 

Those with other debts in addition to their mortgage arrears can ask the Citizen's Advice Bureau for money advice. 

For more information about the schemes, contact the council's Housing Options Team on 01455 238141.

To find out more about how the council can help you, please visit our homeless page.

If your home has been repossessed and you are now living in rented accomodation either through a private landlord or the local authority and you are liable to pay rent and Council Tax at the property, you can claim Housing and Council Tax Benefit.

• Find out whether you are entitled to Housing and Council Tax Benefit

If you would like further advice on what to do if you have been re-possessed, please visit Evictions and Homelessness (Directgov website)