Shared ownership initiative aimed at older homeowners in arrears

Older homeowners who have fallen into arrears are being targeted by a new initiative that offers shared ownership to resolve the debt.

The scheme, which is being offered by equity release company Home Plus in partnership with Mars Capital, a debt servicing company, will allow people over 55 to sell a stake in their home for a lump sum and lifelong right of residence,

Under the deal, Home Plus will take ownership of a portion of the property and agree a monthly payment with the homeowner. The financial terms will be influenced by factors including age, gender and life expectancy of the homeowner and the market value of the property.

Borrowers

The lump sum paid will be less than the market value with vacant possession, due to the lifelong right of residence.

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Borrowers signing up to the shared ownership initiative will have suitability confirmed by a qualified financial advisor.

"Home Plus is proud to announce this programme with Mars Capital to enable people in difficult financial situations to work out an affordable solution to problem debt while continuing to remain living in their home for life," said Ian Higgins, chief executive of Home Plus.

“Home Plus and Mars Capital are working to be ambitious in the sustainable resolution of debt while providing a whole of life solution to individuals who may be excluded by the wider financial services industry because of age, income or other grounds.”

Solutions will be decided on a case by case basis, the companies said.