Mortgage rescue scheme helps just two homeowners

Permalink: Mortgage rescue scheme helps just two homeowners
by Kay Mitchell

A £285 million mortgage rescue scheme, introduced across England in January to help struggling families avoid repossession, has helped just two households according to official figures.

It is reported that 1,084 households applied to local authorities for help last month but only 452 qualified for the scheme. There are 376 claims which are now under consideration and it is understood that over 70 of these are in the final stages, said the Department of Communities and Local Government.

The scheme allows housing associations to buy homes from people struggling to pay their mortgage and then allows the family to rent it.

In order to qualify for the scheme, homeowners must be at risk of repossession and be either elderly, disabled, pregnant or have dependant children.

According to a spokesperson for the scheme, it can take up to five months to process an application and in many cases, repossession action had already been prevented.

However, the Conservative party claimed that the scheme is ignoring thousands of struggling families.

Shadow housing minister Grant Shapps told the Daily Mail: “Ministers promised that it would offer ‘real help now’ to homeowners living with the threat of repossession. Gordon Brown should now try telling that to the thousands of families being frozen out of this scheme and losing their homes as a result.”

In response, Margaret Beckett, Housing Minister, said: “At this early stage, we are seeing the scheme have a positive impact on vulnerable homeowners facing repossession.”