DESPERATE families anxious to keep their homes after falling into debt are getting help from councils.

Manchester City council - one of four in Greater Manchester which pioneered a mortgage rescue scheme - believes it has already saved one home from repossession.

Ten inquiries have been made to the city council about the government's £200 million mortgage rescue scheme, targeted at the most vulnerable households - those on incomes of less than £60,000 a year who would be entitled to be rehoused under homelessness legislation.

Home owners failing to keep up with mortgage repayments are either able to sell a share of their home to a housing association, enabling their monthly payments to be reduced, or they can sell the entire home to a housing association and remain in the property as tenants paying a subsidised rent.

A city council spokeswoman said: "The mortgage rescue scheme covers a wide range of options - starting with getting debt advice, and moving on to some really positive options for mortgage lenders to help people in difficulties.

"Finally for a small minority of people there is the possibility of an arrangement to release equity or sell and rent back their property from a reputable social housing provider. Whilst only a limited number of people will qualify for the full package it is really important that people come for advice because we will be able to offer other possibilities to them. For example our first inquiry resulted in us negotiating with the lender who agreed at the last minute to adjourn the court proceedings. It is likely the lender will extend the term of the mortgage, so reducing the monthly repayments to a level our client can afford.

"The Communities and Local Government mortgage rescue package included funding 74 new court duty schemes for mortgage possession cases nationally - Manchester was ahead of the game and has had a duty scheme in place for a number of years. Anyone with a mortgage hearing in Manchester County Court can access the scheme on the day of their hearing and get representation at court - for the vast majority of these people we can help them avoid losing their homes."

In Oldham the council launched a helpline in December to offer support to residents experiencing financial difficulty. The helpline operated by First Choice Homes Oldham is the main access point for a range of initiatives, including the mortgage rescue service, to offer support to residents at risk of losing their home.

Seventeen residents have been fast-tracked to receive support from Oldham Citizens Advice Bureau, which looks at all possible options to prevent a home from being repossessed, and to examine if the mortgage rescue scheme can be put into operation. Of the 17 residents currently receiving support, four could be eligible for the mortgage rescue scheme.

In Wigan one home-owner has applied for help through the scheme, but, so far, there have been no applications in Trafford.

Extending the scheme for families, the disabled and the elderly throughout the country Housing Minister Margaret Beckett said:" We know that some families are worried about their mortgage payments right now, and we are determined to do everything possible to ensure repossession is always a last resort. For the most vulnerable households, the mortgage rescue scheme will be available across England to help ensure they can remain in their homes."