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Mortgage Rescue Scheme Over Budget And Under Target

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A scheme aimed at preventing people losing their homes in England proved to be below target but above budget, a report has concluded.

The Mortgage Rescue Scheme enabled not-for-profit housing associations to buy a stake or all of a home and allow the residents to continue living there by renting it back.

The National Audit Office (NAO) said it helped 2,600 households avoid having their homes repossessed.

However, the target was 6,000.

The rescues were also supposed to cost a total of £205m, but actually cost more than £240m, the NAO found.

"The scheme has helped fewer than half the number of households expected and each rescue has cost more than three times as much as expected, with overall costs sitting at £240m," said Margaret Hodge, who chairs the Public Accounts Committee.

The real problem seems to be that...

98.5% of those on the scheme chose to sell their home, whereas the original estimate was that only 15% of people on the scheme would do so.

Otherwise known as: take the money!

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A scheme aimed at preventing people losing their homes in England proved to be below target but above budget, a report has concluded.

The Mortgage Rescue Scheme enabled not-for-profit housing associations to buy a stake or all of a home and allow the residents to continue living there by renting it back.

The National Audit Office (NAO) said it helped 2,600 households avoid having their homes repossessed.

Oh, FFS. Where's my eighty grand to spend on the next few years rent...

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http://www.bbc.co.uk/iplayer/episode/b011c224/You_and_Yours_25_05_2011/

On You and Yours BBC R4 today. Opening item, one minute in. Rescue scheme has spent £92K per household helped.

Interview with Grant Shapps will explain it all.....

With sympathy for couple interviewed (65k mortgage, two incomes down to one due to illness, fair enough difficult but credit cards a-plenty takes away some of my sympathy...) but some quotes from Joe Public about 6 mins in:

"the rent is less than half of what the mortgage was" ... "it has been like winning the lottery" ... "the housing association are coming in to revamp the kitchen" ...

FFS it is things like this that make my blood boil. Taxpayer money being given out like free sweets to fat children, and I bet pounds to pence that most households "helped" were not in situations half as bad as the case cited here.

The silver lining here is that the scheme finishes in 2013 YAY. Whoop-de-f'ing-doo.

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The BBC will always get someone to play the victim so they can peddle their agenda of MORE MORE government spending always and everywhere. They have never found a line of government spending they don't like, or a cut they do.

This is rob the people who make the right choices to provide a mini-lottery win to the feckless. Like always. Makes me sick...

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It surprises me they all wanted to sell their home. Surely, houses only ever go up and they're missing out on a shed load of house price appreaciation?

So the scheme has only helped 2000. At least that isn't really large enough to interfere with the market.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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