Mortgage Rescue 'disappointment'

1 July 2009

Modern block of flats

Since its introduction at the start of the year, a total of six people have been helped by the Mortgage Rescue Scheme, the Government has announced. Shelter has described the figure as 'disappointing'.

The scheme was set up to help families who could no longer afford to meet their monthly mortgage payments, by allowing housing associations to buy the property and rent it back to them at an affordable level, or by offering them a 'shared equity loan'.

Sam Younger, chief executive of Shelter said:

'The National Mortgage Rescue scheme has the potential to help many vulnerable homeowners to stay in their home, so it is very disappointing so few people have been accepted onto the scheme.

'Getting accepted onto the mortgage rescue scheme is obviously taking considerably longer than we would want. The Government needs to review the current eligibility process and tackle any issues that that are preventing people from successfully taking up this scheme.

'The introduction in July of regulation by the Financial Services Authority of private mortgage rescue schemes is vital as it will prevent any more vulnerable people from being robbed of their homes by unscrupulous sale and rent back companies.'

 Find out more about the Mortgage Rescue Scheme