Do I qualify?
To qualify you must be:
- In mortgage arrears on your home.
- Insolvent. This means that you are unable to pay your debts in full as they fall due. MABS or your Personal Insolvency Practitioner (PIP) will be able to help you to work this out.
- At risk of losing your home because of arrears. For example, you may have received a letter from your lender to say that you are not co-operating, that your mortgage is unsustainable, or inviting you to consider selling or surrendering your home, or saying that they are going to begin repossession proceedings or that proceedings have already begun.
- 'Reasonably accommodated' This means that the costs of continuing to live in your home are not disproportionately expensive. This takes into account your reasonable living accommodation needs and those of your dependants, and the costs of alternative accommodation in your case. MABS or your PIP will be able to tell you whether you meet these conditions.
However, even if the above conditions are satisfied, you will not be eligible for the Scheme if your home is disproportionate to your reasonable living accommodation needs, as set out at section 104 of the Personal Insolvency Act 2012.
If your mortgage arrears relate only to a buy-to-let property, you are not covered by the Scheme. However, if you are in mortgage arrears on your home, and you also own a buy-to-let, you will still be eligible if you satisfy the above conditions.
You are eligible for the Personal Insolvency Court Review Service under the Scheme if you are insolvent and in mortgage arrears and your creditors have rejected your proposal for a Personal Insolvency Arrangement (PIA) that included your home.