Mortgage Rescue Scheme Funding

Mortgage Rescue Scheme Funding

by Ashley Clark, Director

The Government’s Mortgage Rescue Scheme where local authorities buy a share of your property on a shared equity basis to reduce mortgage payments and help those facing repossession is to have its funding reduced.

The mortgage rescue scheme aims to help those who face repossession but the scheme has proved far from easy to deploy with just 629 families helped since its launch in 2009.  This is just 10% of what the then Labour Government suggested it would help.

There are many other mortgage support schemes such as the ability to postpone up to 70% on interest for s short term or indeed for longer term cases, where the mortgage interest income support scheme takes over.

All of these we believe are fundamentally flawed.

We suggest that the only solution is compulsory insurance like we have for our cars.

Insurance
Accident, sickness and unemployment insurance should be compulsory for all mortgages

Charge
The ability for benefits agencies to be able to place a charge over a property when mortgage interest is paid by the State for people are in financial difficulty.  This would mean that the State has its money refunded when the property is sold in the future or on death.  Why should people get their mortgage paid for a year or two and then once they get back on their feet not have to repay the debt but profit 100% when they sell their home.

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