Mortgage Rescue Scheme Proven Ineffective

It appeared recently that the mortgage rescue scheme, aimed at helping struggling UK borrowers avoid repossession of their homes, only helped 92 families across the country since its launch 11 months ago. The UK Government faced severe criticism for failing to help borrowers. Let us remind that the £285 million mortgage rescue scheme, initially announced in September 2008, but launched in January 2009, was designed by the British Government to assist UK borrowers facing property repossession as a result of defaults in mortgage payments. The figures released last week, however, show that only 92 families actually accepted help offered through the mortgage rescue programme, while 11,000 of borrowers received free advice on mortgage payments. In his statement made last week in front of the Members of Parliament, the British Prime Minister claimed that the mortgage rescue scheme was not more than a “fall-back option”. He is determined that the reason why the mortgage rescue scheme is so unpopular with struggling borrowers is that there are other support options available. The Prime Minister said that the scheme was initially considered a fall-back option, which was supposed to be put to work if the Government was unable to help borrowers in other ways. In the opinion of Mr. Grant Shapps, the Shadow Minister for Housing, the problem is not with borrowers, but with the scheme itself. He pointed out to 11,000 requests for assistance from borrowers since January 2009, of whom very few received real help. According to Mr. Shapps’ estimates, only 1 in 30 borrowers in priority need received adequate advice and support. According to UK Housing Minister, Mr. John Healey, the UK Government has extended the free advice programme as the number of borrowers struggling with mortgage repayments is still depressingly large.