Mortgage Rescue Scheme overspent by £34m

In this recession the UK government has over spent on the Mortgage Rescue Scheme by as much as three times.

The scheme had predicted that each household would cost £34,000 when the reality is that it is costing £93,000 despite it only being taken up 2,600 instead of 6,000 as expected. This is an overspend of £34 million on the £205 million allocated.

The scheme allows home owners struggling to make mortgage payments to sell part or all of their home to a housing association and rent it back or enter into shared ownership agreement.

Around 180,000+ are struggling to pay their mortgages so this is just not enough.

The report accused the Communities and Local Government Department of misunderstanding what support borrowers wanted and reacting slowly when it became apparent the scheme was not providing value for money.

Related articles

• Mortgage rescue ‘missed targets’ (bbc.co.uk)
• Homeowners need helping hand if they hit hard times (mirror.co.uk)