Monday, 20 February 2017

Mortgage rescue funding remains unspent

A housing provider running the government’s mortgage rescue scheme has expressed concerns about the take up of the programme.

Radian said £115 million of the £221 million set aside from the scheme to help 2,500 struggling homeowners remains unallocated despite the financial pressures on households.

Under the mortgage rescue scheme, homeowners who are struggling to meet mortgage repayments can sell some or all of their home to a housing association, which then rents it back to them at an affordable level.

Radian has been allocated £30.6 million from the scheme for 2012-14 to cover 398 cases.

Lindsay Todd, chief executive at Radian, said: ‘When we introduced this scheme in May 2009, we quickly realised it was a service we needed to get involved with. We have now completed 505 rescues, which represents about 3 per cent of our stock, so it is a significant investment.’

The housing association recently held a seminar to discuss the delivery of the programme. It found housing associations are reluctant to get involved with the scheme because they do not consider it part of their remit, and are concerned about the financial risks.

-

Newsletter Sign-up

Related

Articles

  • Mortgage lending increased 12% in June

    10 August 2016

    Mortgage lending increased in June in the run up to the European Union referendum, figures published today reveal.

  • NHF consults on supported housing funding

    25 May 2016

    The National Housing Federation (NHF) has asked housing associations if the resources of councils and government departments should be pooled to fund some care and support services.

  • Mortgage lending increases 16%

    19 May 2016

    Mortgage lending increased 16% year-on-year in April, underpinned by “increasing wages and rising employment”, lenders have said.

  • Mortgage lending jumped 59% in March

    21 April 2016

    Gross mortgage lending in March increased by 59% year-on-year due to buyers seeking to beat the deadline for a stamp duty rise on second homes and Buy to Let properties.

  • Healey calls for answers on RTB funding

    10 March 2016

    John Healey has called on the government to publish full details of its plan to fund the Right to Buy extension through sales of council homes.

IH Subscription