HARD-UP households in the region will be among the first in the country to benefit from the Government’s plan to save 6,000 mortgages.

A month before the £200m mortgage rescue package is made available nationwide, authorities in Darlington, Middlesbrough, Stockton and Scarborough have been chosen to pilot the scheme.

The package aims to save homes from repossession by offering three alternatives.

The options, depending on people’s circumstances and eligibility, are:

● Shared ownership – allowing Registered Social Landlords (RSLs) to buy a share of the property, enabling the owner to pay off some of their mortgage. This option converts the property to shared ownership.

● Shared equity – Allows RSLs to provide an equity loan, enabling the householder’s mortgage payments to be reduced.

● Rent back – Allows RSLs to clear the secured debt completely and the applicant pays rent to them at a level they can afford.

The scheme had been due to be implemented early next year, but was brought forward as part of Chancellor Alistair Brown’s economic stimulus package, unveiled last week.

Housing Minister Margaret Beckett said: “We are determined to do everything possible to provide real help now to homeowners facing tough times, and that means doing all we can to ensure repossession is always a last resort.”

Julie Nixon, head of housing at Stockton Borough Council, said the authority would prioritise families with dependent children, elderly people and other vulnerable households.

She said: “As an early intervention measure, this will help these households avoid the trauma of repossession and allow them to remain in their homes whilst experiencing financial difficulties.”

A Darlington Borough Council spokeswoman said applications would be screened for eligibility.

She said: “If the scheme could help them, they will be directed to a housing association which will be running the scheme and will decide what help, if any, they get.

“If the mortgage rescue scheme is thought not to be the best way to support the caller, they will be told how to get the help they need.”

■ To apply to use the service, call Darlington Borough Council on 01325-388542, Middlesbrough Council on 01642- 245432, Scarborough Borough Council on 01723-232323 or Stockton Borough Council on 01642-393939.