Government mortgage rescue scheme 'inappropriate'

Posted: 14 Dec 2009 11:57:22 GMT

A government scheme, which aimed to help people whose homes could be repossessed, has been described by a mortgage expert as inappropriate.

Andy Pratt, chief operating officer at Alexander Hall, says: "I don't think it is understood, I don't think it is appropriate."

His comments come in response to housing minister John Healey's recent revelation that the Homeowner Mortgage Support Scheme had helped just 15 families since it was introduced in April.

The scheme was intended to assist families who were suffering from a loss of income by allowing them to reduce their home loan payments for up to two years.

While Mr Pratt did not condemn the scheme as an outright failure, he did say that the number of people that it has helped is way below what was expected and he cannot see this figure rising significantly in the future.

The Council of Mortgage Lenders estimates that a total of 48,000 homes will have been repossessed by the time 2009 comes to a close.

© Houseladder Ltd