Mortgage Support Scheme "is virtually worthless"

Date:Thursday 11th December 2008
Author: Susanna Kavka

The government's new Mortgage Support Scheme has been described as "virtually worthless" by price comparison website

Noting that mortgage holders need to have sought advice from a source other than their lender to qualify, Moneysupermarket stated: "If charitable associations such as the Citizens Advice Bureau are expected to step in and help with the delivery of this scheme, it's a bit of a slap in the face to the taxpayer who has already bailed out banks to the tune of billions, and exposes the fact that some lenders have no debt advice capacity."

The website also complained that the list of requirements to qualify for consideration was too exclusive.

Furthermore, it noted that lenders participate voluntarily and have "only signed up 'in principle'".

To be eligible for the scheme, borrowers must fulfill a number of criteria, reported by Reuters.

These include having savings of less than £16,000, showing the income loss is temporary and having been in arrears for several months with the lender having acted tolerantly.

Other requirements must also be met.