Earlier this year, the Government put in place a mortgage rescue scheme costing over £280 million to set up and the Government stated it would reach the 6,000 target in just two years.
The rescue scheme was aimed at helping those borrowers struggling to meet monthly mortgage repayments by allowing those eligible to either sell their home and continue as tenants or acquire an equity loan and reduce the mortgage.
This week, the Government must be shamefaced as the media has revealed this ‘rescue scheme’ has helped a mere six household. If the rescue scheme cost £280 million to set up, this has so far come at a cost of over £46 million per household.
Liberal Democrat Treasury spokesman Vince Cable said: “Repossession is a ticking time bomb. The numbers of repossessions are likely to soar in the next two years because of rising unemployment. Temporary Government schemes are deferring the problem, not solving it. If interest rates start to rise next year, the problem will become even more severe.”
Housing Minister John Healey said: “We have put in place help for home owners struggling with their mortgage at every step of the way.”
Now, to help increase those receiving help, the Government is investing even more money to establish a team to help fast-track eligible cases. At the end of May, there were another 200 households with repossession orders on hold whilst the borrower underwent assessment for eligibility for the Mortgage Rescue Scheme.