Mortgage Rescue Scheme Failing
EuroDebt warns that new figures don't reflect true picture of debt
Official figures were released yesterday (2/6/09) for the government's flagship plan to help people struggling with their mortgage debt. Disappointingly, just two households have been helped so far.
The report showed that around 4,200 people had approached the Mortgage Rescue Scheme for assistance. This includes over 1,000 homeowners making applications over the past month - of which just half were found to be eligible for the assistance. At the moment, just 376 applications are being processed.
But Kevin Still, Director, EuroDebt believes this simply doesn't reflect the true picture of the severity of debt in the UK. The lack of take up of the government scheme also, he believes, demonstrates that the solution is not a good 'fit' for UK homeowners.
"Unfortunately these figures aren't a reflection of the severity of the problem, with many homeowners in serious difficulty meeting both mortgage payments and other priority expenditure. With house prices still falling in April, property disposal is generally only a last resort if there is equity left in the property.
"We firmly believe direct action with the support of professional debt advisors remains the most effective approach to avoiding re-possession, through renegotiation and restructuring of payment plans and the secured loan or mortgage. Dealing with any unsecured creditors that may be compounding the problem is also critical to this process."