Moneysupermarket: Mortgage rescue scheme does not go far enough

Date:Monday 19th January 2009
Author: Susanna Kavka

The government's mortgage rescue scheme does not have a wide enough scope, has said.

A spokesperson for the financial information provider said that while measures to try to stop repossession should be welcomed, the scheme is "more about spin than substance".

The spokesperson pointed out that people in negative equity do not qualify and highlighted other potential pitfalls, such as the fact that many families at risk do not have properties that a Housing Association would want to acquire.

"Indeed, some less vulnerable families might be more likely to be helped simply because they own more suitable accommodation - which surely misses the point," the spokesperson said.

The Council of Mortgage Lenders has expressed some doubts about the Homeowner Mortgage Support Scheme, warning that once borrowers are in a position to take up payments again, they may feel the effects of having deferred.

Director-general Michael Coogan stressed that the scheme does not provide a "free lunch".