Mortgages: Government Assistance

Communities and Local Government written question – answered on 17th October 2011.

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Photo of Richard Fuller Richard Fuller Conservative, Bedford

To ask the Secretary of State for Communities and Local Government

(1) what assessment he has made of the (a) effectiveness and (b) adequacy to meet demand of the Mortgage Rescue Scheme;

(2) what plans he has to amend the (a) availability and (b) terms of the Mortgage Rescue Scheme if mortgage interest rates rise.

Photo of Grant Shapps Grant Shapps The Minister for Housing

The Government Mortgage Rescue Scheme is designed to be an option of last resort for vulnerable homeowners who are at risk of repossession and homelessness. Over 2,600 households have completed the full process to remain in their homes since the scheme began and almost 39,000 households with mortgage difficulties have received free advice from their local authority through the scheme.

The Government reviewed the scheme in July 2010, and again in February 2011, and made changes to improve the value for money by reducing unit costs to ensure that the scheme can help as many households as possible. The scheme will be kept under review to ensure it continues to provide value for money.

The spending review confirmed over £220 million funding for the Mortgage Rescue Scheme from April 2011 to deliver a two year scheme to provide on-going support to households facing repossession. The scheme is delivered by local authorities in partnership with registered social landlords and the Homes and Communities Agency. It is for local authorities to prioritise those households who are most appropriate for the Mortgage Rescue Scheme.

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