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Mortgage rescue scheme 'put on ice'

Thursday May 27th 2010

A scheme introduced during the recession to stop people in Wales having their homes repossessed has been frozen by the Assembly Government.

The grant scheme allows housing associations to provide loans in order to cut mortgage payments or buy a house that is under threat of repossession from people without any form of loan insurance such as mortgage payment protection cover.

A spokeswoman for the Assembly Government said the scheme was being put on hold while it "takes stock" of current applications and insisted it had not been axed.

Deputy minister for housing and regeneration Jocelyn Davies said that while the mortgage rescue scheme could not be prioritised indefinitely, funding had been secured for the rest of the financial year.

Liberal Democrat housing spokesman Peter Black has rounded on the prospect of the scheme being cut which would put "great strain" on local councils.

"We all know that waste needs to be cut to help the budget deficit, but this scheme is very effective," he said.

"A modest £9 million budget has been used to help hundreds of families to remain in their homes.

"The alternative is a great strain on local authority resources, costing more money and potentially putting these families out onto the street."

Copyright © Press Association 2010

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