Labour’s attempt to support struggling home owners through the ‘Mortgage Rescue Scheme’ will only help two percent of Haringey home owners threatened by repossession, according to research by Haringey Liberal Democrats.
The Mortgage Rescue Scheme, administered by Haringey Council, has been launched as the government’s means of helping struggling homeowners survive the recession. Through the scheme, Haringey Council buys part of the home threatened with repossession and lets it back to the former homeowner in order to make monthly payments more manageable.
However, the scheme has been capped nationally, so that only 6,000 rescues can be possible over the next two years in England. Broken down by local authority, that means only 15 Haringey homes will be rescued over that period, about 2% of the estimated 512 homes in Haringey issued with repossession orders in 2007-2008.
Lynne Featherstone, MP for Hornsey and Wood Green, is now calling on the government to extend the scheme to help more struggling Haringey residents.
Lynne Featherstone MP comments:
“The idea to go in and directly help home owners on the brink of repossession is a good one, but looking at the hard numbers, this seems like another Labour PR stunt with little real substance.
“With our high local house prices, many Haringey residents are already struggling with large mortgage payments. As the recession deepens, there is a real risk that more and more people might be faced with the terrifying threat of repossession.
“The housing situation in Haringey is already so difficult – and this scheme seems to do little to stop the record-high numbers of people already in temporary housing from escalating further.”