Mortgage rescue scheme use 'below expected levels'

Date:Monday 14th December 2009
Author: Max Freedman

The number of people who chose to take advantage of the mortgage scheme set up by the government is way below the estimated figures, according to one expert.

Andy Pratt, chief operating officer at independent mortgage advice firm Alexander Hall, said that the Homeowner Mortgage Support Scheme is not something that people want to use.

The initiative, which allows homeowners to defer the payment of their interest by up to two years if they have a property worth £400,000 or less, has only been taken up by 15 householders since it began in April of this year.

Mr Pratt added that, although there is often a lag in how quickly these new schemes are picked up, he cannot see it increasing by any significant number.

Overall, he believes that the programme, which was set up to help those who had suffered from loss of finances during the economic downturn, is not understood by the people who could use it and not appropriate for the same consumesr it should be helping.

In order for the scheme is work, Mr Pratt thinks it is essential for those involved to discuss with consumers what it is they want out of it.