'Just one household' approved for Mortgage Rescue Scheme

Date:Friday 1st May 2009
Author: Susanna Kavka

Since the introduction of the Mortgage Rescue Scheme in January, only one household has been approved for help, it has been suggested.

According to Communities and Local Government figures, 452 households have applied for the assistance, but nearly all have been rejected.

The statistics revealed that 284 applications were made in January and February, while 168 applications were made in March.

Commenting on the issue, Bernard Clarke, spokesperson for the Council of Mortgage Lenders, said that the scheme is still in its early days and many homeowners will benefit from the initiative even if their application was rejected.

He said: "One of the benefits of the scheme is that it encourages people to make contact with their lenders and that means that, in a number of cases, other ways of helping the borrower in difficulty may come to light."

Mr Clarke added that many homeowners may have found that their lenders came to a different agreement with them.