The government is rolling out a £200m programme of measures across the country to prevent some of the most vunerable households, including those containing elderly people, losing their homes.

The scheme works in two ways. Either a registered social landlord (RSL) provides a loan secured on the householder's property enabling their mortgage repayments to be reduced. Or it clears the secured debt completely and the applicant pays rent to them at a level they can afford.

Households can either apply directly to their local housing authority or advice agencies, courts or lenders can refer them. The local housing authority will then carry out an assessment of a householder's eligibility in the same way as for homelessness assistance. The household must include someone with priority needs as defined in the Housing Act 1996 (and Priority Needs Order 2001): This includes a person who is vunerable as a result of old age, mental illness or a handicap or physical disability or other special reason, or with whom such a person resides or might reasonably be expected to reside.

The following criteria will also apply:

• all owners of the property must agree to be being considered for the mortgage rescue scheme
• equity owned in the property must be worth enough to cover priority debts and living in the property must be sustainable after mortgage rescue
• the household must have a clear need to stay in the area and it is not practical for them to trade down to another property in the area
• the property must be suitable for the needs of the household (e.g. it is not overcrowded)
• owners msut have sought debt counselling and advice and, agreed to debt rescheduling and discussed alternative options with mortgage lenders before admission to the scheme
• applicants must not have a second home (including abroad)
• caps will be set on the value of the property (at regional level) and on the household's income level

If eligible, the following process takes place

• the lender is alerted.
• Money Advisors (MAs) are engaged.
• Money Advisors draw up agree with the household  a debt management plan or other financial situation solution setting out their realistic affordable housing costs.
• Registered Social Landlord (RSL) or HomeBuy agency is engaged.
• The property is visited to ensure it is structurally sound.
• Decision is taken on the suitability of a shared equity option or mortgage to rent.
• Local Authorities to agree with the Lender to freeze all further action