Labour talks a good rescue scheme

1 October 2009

The adverts go on to suggest that if you've got trouble with your mortgage, you could access the same assistance.

For those who question statistics the advice for these 300,000 individuals began in April last year and obviously Labour is proud of the fact that advice has been dispensed in such quantities rather than being ashamed of the fact that on its watch so many households have run into financial difficulties.

Interestingly, despite the thousands who have received advice only 15 families have qualified for the government scheme that allows consumers struggling to pay their mortgages to rent the property from their lenders.

This statistic suggests either that the criteria are too exacting or that mortgage-to-rent schemes are still as popular as they were back in the early 1990s when repossessions reached an all-time high.

Alternatively, forbearance on the part of lenders could be rendering government schemes redundant.

Research from the Building Societies Association shows that the majority of borrowers who have fallen into arrears in the past two years have either repaid or are currently repaying their debts, with most pointing out that their lenders have been helpful throughout the process.

Some 58% of those surveyed said their lenders had been very or quite helpful while only 18% branded lenders unhelpful.