Scottish homeowners get £10 million boost

The extra injection of cash means the Home Owners’ Support Fund is now backed with £35 million over this year and next.

The fund builds on the government’s existing Mortgage to Rent scheme and includes a new ‘mortgage to shared equity’ scheme, which will enable homeowners to reduce their mortgage debt by entering into a shared equity agreement with the Scottish Government. The joint scheme will start in March.

The Chartered Institute of Housing Scotland responded to the government’s announcement by calling on banks to introduce a similar scheme for customers facing repossession. This would involve the lender reducing the customer’s mortgage by taking ownership of part of the home.

Nick Fletcher, the institute’s head of policy, said: ‘This will allow many more people to be helped and prevent unnecessary repossessions. Repossessions cost the lenders, the people being made homeless and the public purse, in addressing the resulting homelessness.’

Graeme Brown, Director of Shelter Scotland, said: ‘We are pleased that our discussions last year with the Scottish Government regarding expanding the rescue scheme have proven fruitful.’

The Scottish Government also this week published a summary of the actions it is taking to ease the effects of the economic slump on Scotland.

This includes bringing forward £120 million of housing investment cash over the next two years and setting up a ‘repossessions group’ to consider by the end of April whether legal protection is strong enough for Scottish homeowners at risk of repossession.

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