Mortgage rescue scheme unveiled

Lenders have predicted 45,000 homes will be repossessed in 2008

A new scheme to rescue homeowners at risk of repossession in Teesside has won the backing of the local council.

Hambleton District Council has agreed to support a 'flexible tenure scheme' with a £100,000 grant.

Broadacres Housing Association will use the cash to purchase up to five at-risk properties and then offer the resident an assured tenancy on their home.

Where possible properties will be part-purchased to allow owners to retain some equity in their homes.

The council said the move will prevent homelessness.

Eric Kendall, the council's head of environment, added: "We are putting £100,000 into the scheme - money that has been received from developers for affordable housing provision.

"This scheme will rescue at least five households from repossession and homelessness so adding to the affordable housing stock of the district."