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Repossession scheme 'kept on ice'.

Summary: A government scheme to prevent people losing their homes has failed to help anyone, it has emerged.

A government scheme to prevent people losing their homes has failed to help anyone, it has emerged.

The Homeowner Mortgage Support Scheme has still not been implemented by lenders, who are seeking more clarity and guarantees from the Government, ITV News reported.

Announced by Prime Minister Gordon Brown to the Commons in December, the scheme allows households with loans of up to Au400,000 to defer interest payments for up to two years if they suffer a sudden and temporary loss of income.

Mr Brown told MPs the country's eight biggest lenders had agreed to sign up.

But the Government will only be issuing legal documents on Friday, finally allowing the scheme to go ahead.

Lenders feared the scheme would only defer a "repossessions spike" to 2011 and burden homeowners with unmanageable payments to catch up.

The claims come as figures from the Council of Mortgage Lenders are expected to show a jump in the number of people who lost their homes during the final quarter of 2008, possibly as high as 42,000.

The Ministry of Justice is also releasing figures showing the number of repossession orders made by courts in England and Wales during the final quarter of 2008.

New figures show mortgage lending slumped to Au12.4 billion during January, 52 per cent below the total for the same month of 2008.

Independent Television News Limited 2009. All rights reserved.

Independent Television News Limited 2009. All rights reserved.

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Publication:Independent Television News Limited (ITN)
Date:Feb 23, 2009
Words:267
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