Shared Ownership Schemes

(asked on 18th May 2020) - View Source

Question to the Department for Levelling Up, Housing & Communities:

To ask the Secretary of State for Housing, Communities and Local Government, what steps his Department has taken to support shared-ownership housing scheme applicants who are enrolled on the Government furlough scheme.


Answered by
Christopher Pincher Portrait
Christopher Pincher
This question was answered on 26th May 2020

The furlough scheme is a strong package of financial support, so where they can, shared owners should still pay the rent to their landlord and mortgage to their lender as normal.

Shared owners who are struggling to meet their financial commitments can apply for universal credit to get help paying their rent and might be able to get Support for Mortgage Interest if they have been on benefits for 39 weeks without any breaks.

On 17 March the Chancellor also announced, on behalf of the sector, that banks and building societies will offer a 3-month ‘mortgage holiday’ for borrowers struggling financially as a result of COVID-19. Like other mortgage holders, shared owners who are struggling to meet their mortgage payments will be able to request a mortgage payment holiday from their lender.

Shared owners should not be forced out of their home during this difficult time. The Coronavirus Act 2020 rules that landlords must give three months’ notice of possession, and the moratorium on repossessions by the Financial Conduct Authority (FCA) means that lenders should not commence or continue repossession proceedings against their customers.

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