Private Sector Housing

Mortgage to Rent

This scheme offers owners who are struggling financially the opportunity to have their home bought by either a Housing Association or Local Authority and for them to continue to live there with a Scottish Secure Tenancy. Applicants may be eligible if:

1. They are at least three months arrears with their mortgage payments, they have been unable to reach an alternative repayment agreement with their lender and their home is in danger of repossession
2. all the owners of the property agree to the application to the Mortgage to Rent Scheme
3. the property is the sole or main residence of someone in the household
4. they have obtained advice from an accredited money advice service about their financial circumstances and explored all other options they have available to them.

An applicant will not normally be eligible for the scheme if:

1. They are under 60 years old and the capital held by them and their partner is greater than £2,000, or they are 60 or over and the capital held is greater than £14,000
2. They have lived in the property for less than 12 months (unless they can show that they have built up a social network e.g. work locally etc)
3. The value of their property is higher than the average value in their local authority area (unless they can provide written confirmation from a medical professional that they have reason to remain in the property, for example if the property has been heavily adapted.
4. Their property needs more than £8.500 worth of repairs (unless the repairs can be funded in another way).

Hjaltland Housing Association participates in the scheme, but Shetland Islands Council does not. You should contact Hjaltland Housing Association by telephone on Lerwick 01595 694986 or email for further information.

The scheme may contact landlords who have not registered an interest in participating in the scheme if this is considered appropriate.

Mortgage to Shared Equity Scheme

The Mortgage to Shared Equity scheme involves the Scottish Government taking a financial stake in your home. You will still own your home and continue to have responsibility for maintaining and insuring it, and you would be able to reduce the amount you pay to your lender every month.

A financial assessment of the applicant will be undertaken by the Scottish Government to determine their eligibility and suitability for both schemes, based on their personal circumstances.  They will also determine what financial contribution they can provide.

How to apply

Applications cannot be accepted directly from the public.  You must seek financial advice from an accredited money advice service.  They will apply to the scheme on your behalf if you meet the eligibility criteria. Further details and contact details for the Funds team are available from the links in the box below.