The Mortgage Rescue Scheme

The Mortgage Rescue Scheme
By:Great Britain. National Audit Office
Published on 2011-05-25 by The Stationery Office

The Mortgage Rescue Scheme, since it was launched in January 2009 by the Department for Communities and Local Government, achieved fewer than half of the rescues expected. The Department directly helped 2,600 households avoid repossession and homelessness at a cost of in excess of £240 million - but it originally expected to help 6,000 households for £205 million. Under the Scheme, vulnerable homeowners at imminent risk of repossession who fulfil the eligibility criteria can apply to housing associations to provide them with an equity loan to help them reduce their monthly mortgage payments and retain ownership; or, alternatively, to purchase the home outright with the former owner remaining in the house as a tenant. The Department misjudged what the levels of demand would be for the respective types of rescue. It thought that most households would choose to take an equity loan through the Scheme, the cheaper option for the taxpayer, but nearly all sold their houses and stayed on as tenants. As a result, the average cost of each completed rescue has been much higher than expected - £93,000, compared with £34,000. The Department does not have enough information to say why so few households took the equity loan route. The Department now has actions in place to reduce the cost of the Scheme to the taxpayer. The report concludes that the Department did not adequately test the assumptions underpinning the Scheme's business case, and that it could have acted earlier to improve value for money.

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Book which was published by The Stationery Office since 2011-05-25 have ISBNs, ISBN 13 Code is 9780102969702 and ISBN 10 Code is 0102969701

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