Is a ticking tome bomb!
The total number of households across the country assisted by the Mortgage Rescue Scheme so far is only six.
The figure increased from two at the end of April to six at the end of May.
However, the government originally stated it wanted to help 6,000 families faced by repossession. Luckily, the number of repossessions affecting contractors in relatively small compared to their employed counterparts.
Lib Dem shadow chancellor Vince Cable said: “Helping just six families is absolutely pitiful and doesn’t even begin to address the scale of the problem.”
“Vast reams of red tape stand in the way of families faced with repossession staying in their own homes. There are enormous time lags and the vast majority of people who think they are eligible find that they are not.”
“Repossession is a ticking time bomb.”
“Despite the predictions of a modest fall, the numbers of repossessions are likely to soar in the next two years because of rising unemployment. Temporary Government schemes are deferring the problem, not solving it.”
“If interest rates start to rise next year, the problem will become even more severe.”
Those contractors who have at least 50% equity in their properties and have debt that they wish to consolidate can remortgage their home with a contractor mortgage. Interest rates can be as low as 2% for contractor mortgages.
