Earlier this month the Homeowners Mortgage Support Scheme, which was proposed by the government last year, finally got underway after being delayed. The scheme was set to launch earlier this year, but as the government and banks were still in discussion the launch of the scheme had to be delayed by several months.
The scheme aims to help homeowners that are experiencing problems with repayments due to job or income losses by enabling them to defer up to 70 percent of the interest payments on their mortgage. However, there is mixed reaction with regards to just how many people will actually end up benefiting from the scheme.
Whilst some industry groups such as the Council of Mortgage Lenders are concerned that many people will end up failing to benefit from the scheme, government officials such as the housing minister have said that the scheme will help many people that would otherwise struggle.
The Council of Mortgage Lenders has said that whilst the scheme is a good idea it may not help all that many people with mortgages.
The CML said: “The CML does not expect that the guarantee will be triggered in many cases, as the scheme is aimed at borrowers who expect to be able to resolve their difficulties and resume full mortgage payments within a year or two.”
However, Margaret Beckett, the housing minister, said: “The idea of this is to try and help people who haven’t lost everything, and who aren’t going to be eligible… to be re-housed under homelessness legislation, but who nevertheless are having difficulties. Maybe one of them has lost their job but not both, maybe it’s just that they’ve lost their overtime, but one way or another… they are struggling with the mortgage level payments that they could meet before.”
8 May
