The government’s Mortgage Rescue Scheme has helped a total of 629 households in England since it launched in January 2009.
Figures from the Department of Communities and Local Government show that 5,022 households have approached their local authorities about mortgage difficulties between January and March, with the total number that have gone to their local authority for help now at 20,254.
When the scheme was launched by the then housing minister Margaret Beckett in January 2009 it was estimated that the scheme would help up to 6,000 households avoid repossession over the next two years.
The Mortgage Rescue Scheme involves two options for home owners who are struggling to repay their mortgage.
The ’government mortgage to rent’ option involves a registered social landlord buying the property from the home owner, who then gets to stay in their home by paying rent.
Under the ’shared equity’ option the registered social landlord gives the home owner a loan so that monthly payments can be reduced.
Between January and March there were 1,849 live applications, which relates to cases where action has been taken to stop the immediate threat of repossession.
Some 276 households were helped by the Mortgage Rescue Scheme during the whole of last year, a figure that fell far short of the government’s 6,000 estimate over two years.
Out of that total 182 households used the scheme during the last three months of the year.