Minister seeks to fast-track mortgage rescue

Mrs Beckett told MPs it was ‘a source of some regret’ that the £200 million scheme was still at an early stage.

The Council of Mortgage Lenders predicts repossessions will rise by up to 18,800 this year, to 45,000.

The government announced plans for a national mortgage rescue programme in September, but it is not expected to be ready until the new year.

Mrs Beckett this week told the Communities and Local Government committee: ‘We are at the early stages and, as I’m sure you know, it is a source of some regret to me.

‘Indeed I have asked my officials to look again at the process to see if we can shorten it at all.’

Graeme Moran, managing director of Metropolitan Home Ownership, said that since the announcement distressed homeowners had been calling his association seeking help.

But it was not yet possible even to tell people if they were likely to be eligible, he added.

Some people are phoning saying: “Why aren’t you helping us?” All we can say is give us your name and address and we’ll get back to you.’ Graeme Moran, managing director, Metropolitan Home Ownership

‘People have read that announcement and now they’re desperate,’ said Mr Moran, whose association was on the working group that drew up early proposals for the scheme. ‘If you hear the government making an announcement on mortgage rescue, you want help now.’

The scheme will eventually allow housing associations to buy shares of people’s homes or to buy them outright, converting their tenures to shared ownership or affordable rent.

It is expected to help up to 6,000 households avoid repossession.

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