SARWAR UNVEILS MORTGAGE RESCUE SCHEME
- 2 years ago
Scottish Labour has today unveiled new plans to help people at risk of losing their homes as mortgage costs spiral.
Soaring interest rates caused by Tory economic mismanagement risk triggering a wave of mortgage arrears and potential repossessions – but support for struggling homeowners remains woeful.
Labour is calling for a relaunch and revamp of the Scottish Mortgage to Shared Equity scheme so that homeowners struggling with soaring mortgage costs can reduce their monthly repayments through the Scottish Government taking a temporary equity share in their home.
The current Mortgage to Shared Equity Scheme has not had a single successful applicant since 2015/16, while the SNP’s other support scheme for homeowners has been beset by low uptake and severe delays.
Labour’s proposals would revamp these schemes by extending eligibility and reducing application turnarounds, so they act as a real safety net during the cost of living crisis.
This intervention follows Scottish Labour’s success securing a rent freeze and evictions ban for tenants.
Commenting, Scottish Labour leader Anas Sarwar said:
“The cost of living crisis has pushed the price of energy, fuel and food through the roof, and now homeowners have been hit with a Tory premium on their mortgages.
“Labour have led the way from opposition by securing a rent freeze and evictions ban for tenants, and now homeowners need help.
“People are at risk of losing their homes and even ending up homeless, but both of our governments have failed to step up and make a difference.
“The Tories need to fix the mess they have made, but it is not enough for the SNP to criticise from the sidelines.
“We need to use the powers we have here in Scotland to help people keep their own homes.”
Scottish Labour are calling for:
The eligibility of the Mortgage to Shared Equity scheme to be widened by:
Amending the eligible house price thresholds so that it is not only the lowest value homes that qualify.
Reducing the size of the equity that people need to have in their property to ensure that buyers who have recently bought their home with smaller deposits and are rolling off their fixed rate can still access support.
An increase to the resources dedicated to Home Owner Support so that they can deliver a maximum of a two month turnaround for applications.
The Home Owners Support Fund is designed to help people at risk of having their home repossessed. It is made up of a Mortgage to Shared Equity Scheme and a Mortgage to Rent Scheme.
There have been no applications to the Mortgage to Shared Equity scheme since 2015/16, and in 2020/21 the average processing time for applications to the Mortgage to Rent scheme was 14 months, with one person waiting 3 years.
Soaring interest rates caused by Tory economic mismanagement risk triggering a wave of mortgage arrears and potential repossessions – but support for struggling homeowners remains woeful.
Labour is calling for a relaunch and revamp of the Scottish Mortgage to Shared Equity scheme so that homeowners struggling with soaring mortgage costs can reduce their monthly repayments through the Scottish Government taking a temporary equity share in their home.
The current Mortgage to Shared Equity Scheme has not had a single successful applicant since 2015/16, while the SNP’s other support scheme for homeowners has been beset by low uptake and severe delays.
Labour’s proposals would revamp these schemes by extending eligibility and reducing application turnarounds, so they act as a real safety net during the cost of living crisis.
This intervention follows Scottish Labour’s success securing a rent freeze and evictions ban for tenants.
Commenting, Scottish Labour leader Anas Sarwar said:
“The cost of living crisis has pushed the price of energy, fuel and food through the roof, and now homeowners have been hit with a Tory premium on their mortgages.
“Labour have led the way from opposition by securing a rent freeze and evictions ban for tenants, and now homeowners need help.
“People are at risk of losing their homes and even ending up homeless, but both of our governments have failed to step up and make a difference.
“The Tories need to fix the mess they have made, but it is not enough for the SNP to criticise from the sidelines.
“We need to use the powers we have here in Scotland to help people keep their own homes.”
Scottish Labour are calling for:
The eligibility of the Mortgage to Shared Equity scheme to be widened by:
Amending the eligible house price thresholds so that it is not only the lowest value homes that qualify.
Reducing the size of the equity that people need to have in their property to ensure that buyers who have recently bought their home with smaller deposits and are rolling off their fixed rate can still access support.
An increase to the resources dedicated to Home Owner Support so that they can deliver a maximum of a two month turnaround for applications.
The Home Owners Support Fund is designed to help people at risk of having their home repossessed. It is made up of a Mortgage to Shared Equity Scheme and a Mortgage to Rent Scheme.
There have been no applications to the Mortgage to Shared Equity scheme since 2015/16, and in 2020/21 the average processing time for applications to the Mortgage to Rent scheme was 14 months, with one person waiting 3 years.