"Government repossession scheme inadequate" - Mark Hunter MP

March 30, 2009 2:55 PM
Mark

Mark is campaigning for the scheme to be extended to more families

Mark Hunter MP for the Cheadle constituency has slammed as 'totally inadequate' a government scheme supposed to help families facing the loss of their homes.

The Mortgage Rescue Scheme was announced in November last year by the Government following an alarming rise in the number of people having their homes repossessed by mortgage lenders. But Labour ministers have restricted the scheme to only 6,000 homes across the whole of England. That means only one in 25 households facing repossession claims in the courts - the first part of a process mortgage lenders have to go through to repossess a home - will get help under the scheme.

In the Stockport Borough 779 repossession claims were issued in 2008, and many more are expected in 2009. But only 32 families are likely to have their homes saved under this scheme.

Mark Hunter MP said, "The Mortgage Rescue Scheme was launched with a great fanfare by the Government in the autumn. But it is totally inadequate for the tidal wave of repossessions that local residents are facing.

"The idea behind the scheme is something Liberal Democrats have long been pushing - giving councils and housing associations the opportunity to help residents in mortgage arrears by buying a share in the equity of the home, or even buying it outright. The householders would then rent back their home, therefore avoiding eviction.

"But Labour have taken a good idea and then failed to make it a reality. Only 32 families in Stockport out of the 779 facing repossession will get help. This is totally inadequate.

"Repossession is a terrifying reality for too many people in our area. The Mortgage Rescue Scheme needs to be expanded urgently so that residents do not have to face being thrown onto the streets."

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