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Cut to mortgage scheme is badly timed, says expert
Fri, 23 Jul 2010
The announcement of the reduction in funding for a scheme designed to help struggling homeowners is "incredibly bad timing", a mortgage expert has claimed.

Housing minister Grant Shapps recently said that the Mortgage Rescue Scheme would continue, but will instead be "refocused to deliver better value for money, with a reduction in the grant rate paid to housing associations".

However, Paula John, editor of Your Mortgage, explained that the announcement is "not one of comfort" to the many homeowners who have been affected by the recession.

She said: "More people are likely to struggle with the cuts in public sector spending which are likely to impact on redundancies, increase unemployment and affect people's abilities to repay their mortgages .

"What you would hope for is more support rather than less at this juncture."

Ms John added that it is no surprise that the government is looking to cut costs at the moment, although "the question is whether they have picked on the right department here".

Data from the Council of Mortgage Lenders (CML) revealed recently that gross mortgage lending in June was an estimated £13.1 billion, a 15 per cent rise from £11.4 billion in May.

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